Hong Kong Treasury Bureau official Xu Zhengyu: In the future, we will promote the high-quality development of the financial market from four dimensions of promoting reform, expanding infrastructure, increasing capacity, and building connectivity.

On April 29th, the Hong Kong Legislative Council resumed its second reading debate on the "Appropriation Bill 2026." During his speech, the Financial Secretary of Hong Kong, Paul Chan, stated that despite the complex global situation, Hong Kong's financial market remains strong. In global financial center indices, Hong Kong ranks first in Asia and third globally. Investors are increasing their asset allocations in Hong Kong, reflecting its role as a reliable safe haven. In the future, efforts will focus on promoting high-quality development of the financial market in four dimensions: "promoting reform," "expanding infrastructure," "increasing capacity," and "building connectivity." In terms of "promoting reform," initiatives include reforms in the stock market, digital assets, and Trillions of MPF. In the first quarter of this year, the average daily turnover in the stock market exceeded HK $270 billion, a 14% increase from last year. Additionally, Hong Kong had the largest IPO fundraising globally at HK $110 billion. Authorities will continue to push for further reforms, including optimizing the governance framework for listed companies. Digital assets represent a sector with great potential in financial technology. Following the implementation of the Stablecoin Regulations in August last year, the Hong Kong Monetary Authority issued the first batch of stablecoin licenses in April this year, aiming to submit a bill to the Legislative Council this year on the regulatory system for service providers. Furthermore, the Mandatory Provident Fund System in Hong Kong will be further optimized to lower platform fees for investors. Regarding "expanding infrastructure," efforts will concentrate on the bond market, financial technology, international gold trading market, and commodities trading. Key initiatives include establishing a central clearing system for gold in Hong Kong, signing a cooperation agreement with the Shanghai Gold Exchange in January this year. The Hong Kong Precious Metals Central Clearing System Limited is advancing its system construction work and plans to commence trial operations this year. Efforts are being made to create an efficient gold ecosystem, including the study of measures such as tax incentives. Recommendations will also be given by the bulk commodities strategy committee on the position, planning, and promotion strategies for the commodities market in Hong Kong. On the bond market front, the Hong Kong Monetary Authority and HKEX are studying the establishment of an integrated multi-asset securities infrastructure, covering stocks and bonds in Mainland China and Hong Kong. The government will continue to issue tokenized bonds regularly, while the Digital Bond Grant Scheme by the Hong Kong Monetary Authority will encourage more digital bond issuance. In addition, Hong Kong's significant advantage in financial technology will continue to drive its development. The Hong Kong Monetary Authority and Cyberport initiated the second phase of Sandbox Testing earlier this year, promoting the safe and responsible application of AI in the banking sector. In November last year, the Hong Kong Monetary Authority launched the pilot phase of the Ensemble project (EnsembleTX), allowing industry participants to trade tokenized deposits and digital assets in a controlled environment. The system will be further optimized to support 24/7 real-time settlement and uphold local standards, enhancing connectivity between Hong Kong and other markets. For "increasing capacity," efforts are focused on asset and wealth management, company re-registration system, green finance, and the insurance industry. Currently, there are more than 3,380 single family offices established in Hong Kong, with the Invest Hong Kong successfully assisting over 250 family offices in setting up or expanding their businesses in Hong Kong. Legislative proposals to further optimize tax incentives for funds, single family offices, and associated equity will be submitted to the Legislative Council in the first half of this year. The New Capital Investors Entrance Scheme has received over 3,360 applications as of March, and the government will continue to review and enhance the scheme. Up to mid-April, over 30 company re-registration applications have been approved, with around 20 more currently being processed. Efforts will continue to promote and attract more companies to re-register in Hong Kong. In the insurance industry, the Hong Kong government has been working with the Insurance Authority to promote market development by expanding the risks that captive insurers can underwrite and halving the profits tax rate for maritime insurance, general reinsurance, and other industries. These efforts have yielded results, including the issuance of seven catastrophe bonds in Hong Kong and the establishment of seven captive insurers, demonstrating Hong Kong's attractiveness as an international risk management center for domestic and foreign enterprises. As for "building connectivity," the government will continue to deepen financial market connectivity with the Mainland, such as including Real Estate Investment Trusts in the cross-border connectivity, launching offshore RMB government bond futures in Hong Kong, and including RMB trading counters in the Stock Connect. Leveraging financial reforms and innovations in the Qianhai Cooperation Zone, cooperation will be implemented gradually in Greater Bay Area financial cooperation measures under controlled risks. Furthermore, the Hong Kong government is actively supporting the establishment of the Asian Infrastructure Investment Bank's Hong Kong office, serving as a super-connector and value-added hub to enhance international financial cooperation.