Hong Kong Investment Funds Association: Welcome optimization of mutual connectivity mechanism, hoping for expansion of increments.

The Hong Kong Investment Funds Association stated that measures to optimize the Hong Kong stock market will ensure alignment with international standards (such as T+1), improve market efficiency, and reduce trading costs. The association welcomes the optimization of the mutual access mechanism and hopes that proposed measures can be implemented as soon as possible, especially the launch of offshore sovereign bond futures in Hong Kong and the introduction of block trading in stocks, which are crucial for international investors. The association also hopes for an expansion of mutual access to further optimize and enhance cross-border wealth management in the Greater Bay Area. The association welcomes the proposals in the budget related to the asset management industry to strengthen the main drivers of industry growth and ensure that Hong Kong maintains its leading position internationally. The association stated that while fund tokenization and virtual assets are still in their early stages, these areas are expected to bring new business models, enrich the ecosystem, expand the investor base, and change the way the industry interacts with investors; this is of profound significance for the future development of the fund industry. The successful development of the virtual asset market depends on appropriate regulatory frameworks and infrastructure. The government's intention to issue a second virtual asset policy statement demonstrates its foresight, and the association looks forward to participating more in the relevant discussions. The association pointed out that as major global financial centers aggressively attract family offices and private funds, competition is becoming increasingly fierce; ensuring tax advantages for these areas is crucial to maintaining Hong Kong's competitive advantage. The clarification by the Securities and Futures Commission on the regulatory requirements for listed private funds is an important step; it allows the general public to have the opportunity to access private fund assets in a cautious and steady manner, which has traditionally only been available to high-net-worth individuals and institutional investors.