Xu Zhengyu: The SAR government continues to explore the establishment of an OTC Over-the-Counter trading platform, and the Hong Kong Stock Exchange will announce specific arrangements in due course.

Regarding the establishment of an over-the-counter trading platform (OTC), similar to the Pink Sheets market in the United States, to provide trading opportunities for delisted companies, Christopher Hui, the Secretary for Financial Services and Treasury of Hong Kong, pointed out that the government will continue to discuss with the market to provide an OTC trading platform for delisted or special handling shares. The Securities and Futures Commission of Hong Kong and the Hong Kong Stock Exchange (00388) have conducted preliminary consultations with market participants on this matter in the past. However, Hui revealed that there are differing opinions on whether the OTC trading platform should be open to retail investors to provide an exit opportunity for shareholders of delisted companies, and whether market makers should be introduced to address liquidity issues. Some believe that allowing only shareholders of delisted companies to sell their shares on the OTC platform may not be enough to sustain a viable market. He noted that due to the fundamental conditions of delisted companies, they may not have sufficient transparency or be difficult to assess comprehensively, which may pose higher risks for retail investors and limit the attractiveness to institutional investors. There is also uncertainty as to whether it can provide a channel for stock sales for securities firms. The Hong Kong Stock Exchange will continue to review feedback from various parties and announce specific arrangements in due course, seeking further input from the market. On another note, Hui did not directly respond to whether a special fund would be established for the securities industry to upgrade systems in compliance with new regulations. He only mentioned that brokerage firms have seen increased revenue in the buoyant stock market. As trading volumes continued to grow in the second half of 2025 and the first two months of this year, the government anticipates that the revenue and profitability of brokerage firms will continue to rise.