The Securities and Futures Commission of Hong Kong has for the first time approved secondary market trading of a tokenized fund offered to the public.

The Securities and Futures Commission (SFC) of Hong Kong has approved the world's first batch of tokenized funds offered to the public for secondary market trading on SFC-licensed virtual asset trading platforms (VATPs). Two existing SFC-authorised tokenized money market funds (the ChinaAMC HKD Digital Money Market Fund and the ChinaAMC USD Digital Money Market Fund) began offering round-the-clock secondary market trading today. Building on the SFC's existing exchange-traded fund and VATP regulatory regimes, the SFC introduced a new regulatory framework in April 2026 to pilot secondary market trading of SFC-authorised tokenized funds on SFC-licensed VATPs. In a circular, the SFC set out the relevant requirements and safeguards for secondary market trading of tokenized funds, covering areas such as the operation of trading channels, fair pricing, liquidity provision and disclosure. Looking ahead, tokenized funds offered to the public can further leverage the tokenized deposit functionality developed under the SFC's collaboration with the Hong Kong Monetary Authority (HKMA) under Project Ensemble. In particular, the interaction between tokenized funds and tokenized money through digital rails will help enhance the efficiency of trade settlement and asset flows. Investors can sell tokenized assets at any time on VATPs and instantly and flexibly deploy the proceeds to other investments and uses, further enhancing the utility of Hong Kong's increasingly mature tokenized ecosystem. Ms Christina Choi, Executive Director of Investment Products of the SFC, said: "The commencement of secondary market trading of tokenized money market funds marks an important milestone in the SFC's ongoing efforts to promote the development of digital assets in Hong Kong. It not only puts the SFC's regulatory framework into practice, but also adds 24/7 trading, an important feature, to Hong Kong's evolving tokenized ecosystem. We will continue to promote responsible innovation while safeguarding investors, further consolidating Hong Kong's position as a tokenization pioneer." The first batch of products are primarily tokenized money market funds. The SFC will closely monitor the relevant trading activities and will consider expanding the scope of products in due course, having regard to market developments and the experience gained.