Hong Kong SFC's Wong Tin-yau: In the first half, the profits of all Hong Kong brokerages rose more than 50% year on year, with AI as an important driving force.

On October 30, Dr. Wong Tin-yau, Chairman of the Hong Kong Securities and Futures Commission (SFC), attended the 47th Anniversary Financial Innovation Forum of the Hong Kong Securities Association and said that the Hong Kong securities market has performed remarkably well this year. In the first half of the year, the profits of all brokerages rose more than 50% year on year, with the profit growth of Type B and Type C licensed brokerages reaching 75%. This reflects the vitality of the Hong Kong market and shows that brokerages of different sizes are all seeking new growth drivers. And artificial intelligence is undoubtedly one of the most important driving forces. Wong Tin-yau believes that what the financial industry truly needs is not just Artificial Intelligence, but Accountable Intelligence. AI can assist people in making judgments, but it cannot replace people in bearing responsibility; functions can be delegated, but responsibility cannot be outsourced. He continued that to truly achieve "Accountable Intelligence," there are three key points. First, it must be "visible." Boards of directors and senior management must first clearly know where the institution uses AI, what judgments AI is making, and what risks it may bring. AI cannot merely be an information technology (IT) department project; it needs to be incorporated into the institution's overall risk management and governance framework. Second, it must be "manageable." The stronger AI's capabilities become, the more important human oversight is. In particular, major decisions involving client interests, investment decisions, risk-taking, or compliance responsibilities must retain genuine and effective human oversight. Management cannot pass responsibility to machines simply because "AI made the decision." Third, it must be "questionable." Not every employee needs to become an AI expert, but at a minimum they must be able to understand how AI affects their work, be able to question AI's output, and know when they cannot rely on AI alone. Equally important, management must be able to explain and account to the board, clients, and even regulators: Why is AI being used? How are risks managed? If problems arise, who is responsible? Wong Tin-yau emphasized: "Good AI governance and innovation are not opposites. On the contrary, the clearer the governance and accountability, the more conditions we have to innovate boldly. Good governance enables innovation to proceed more steadily and go further. Only when responsibilities are clear and risks are controllable will clients have confidence, the market accept it, and technology investment have the opportunity to truly enterprise competitiveness." "If Hong Kong is to build an internationally leading fintech ecosystem, we must certainly be brave in innovation, but we must also continue to protect the most important asset of Hong Kong's financial market, and that is trust."