The Securities and Futures Commission of Hong Kong is planning to increase the position limits for derivatives linked to the three major stock indexes in Hong Kong.

The Securities and Futures Commission of Hong Kong issued a consultation paper today (April 30) on the proposed increase in the position limits for exchange-traded derivatives based on the three major stock indices in Hong Kong (Hang Seng Index, Hang Seng TECH Index, and H shares Index). The consultation, which ended on March 28, 2025, received strong support from respondents who believed that the proposed revisions would enhance market liquidity, improve hedging efficiency, and further stimulate market growth. A total of 25 submissions were received from both local and overseas market participants, including market makers, asset managers, industry organizations, and other stakeholders. After considering the received feedback, past and potential market growth, and the usage of position limits by market participants, the Securities and Futures Commission of Hong Kong will proceed to implement the proposed revisions. The Commission will amend the Securities and Futures (Contract Limits and Reportable Positions) Rules and the Position Limits and Large Open Positions Reporting Guidelines. Depending on the progress of the legislative process, the new position limits are expected to take effect in July 2025. Mr. Leung Chung Yin, Executive Director of the Market Surveillance Department of the Securities and Futures Commission of Hong Kong, said, "The SFC is committed to establishing a flexible and robust regulatory framework that not only safeguards the stability of the financial market but also supports its development. These optimization measures will strengthen Hong Kong's position as a leading global risk management center, while maintaining stringent supervision and prudent monitoring of market operations."