Christopher Hui moves the Second Reading of the Securities and Futures (Amendment) Bill to improve the restructuring mechanism for Hong Kong REITs and strengthen the regulation of listed funds.

On 11 November, Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, moved the Second Reading of the Securities and Futures (Amendment) Bill 2026 at a Legislative Council meeting. The bill aims to improve the real estate investment trust (REIT) regime, fill regulatory gaps for listed collective investment schemes, and consolidate Hong Kong's position as a global asset and wealth management centre. Hui said that, with the support of the national 15th Five-Year Plan, Hong Kong has become the world's largest cross-border wealth management centre. As of the end of 2025, Hong Kong's assets under management rose 20% year on year to HK$42.2 trillion, a record high. The Hong Kong government has continued to strengthen the wealth management industry's advantages through measures such as developing family offices, optimising the fund tax regime, and supporting REIT listings. The amendments contain two core elements. First, a statutory restructuring and compulsory acquisition mechanism will be added for REITs. Drawing on the framework of the Companies Ordinance, the bill provides clear legal rules for REIT mergers and privatisations, with targeted adjustments reflecting the characteristics of REIT products, to protect the rights of fund unit holders and enhance REIT market liquidity. Second, the regulatory regime for listed collective investment schemes will be improved. The current regulatory provisions are geared towards listed companies; the amendments will formally extend the market misconduct, inside information disclosure, and disclosure of interests rules to listed collective investment schemes, aligning with international regulatory standards and further protecting investor rights and safeguarding the stable operation of the market. According to the introduction, the proposed amendments received broad support from the industry during the Securities and Futures Commission's public consultation, and also won widespread recognition from lawmakers when the Legislative Council Panel on Financial Affairs sought views in July this year. The bill will be implemented in two phases: the REIT regime enhancements and the market misconduct regulatory amendments will take effect immediately upon gazettal; the new inside information and disclosure of interests rules will be deferred to 4 December 2027, allowing sufficient time for the industry to complete system and process adaptations. Hui called on Legislative Council members to support the bill, further consolidating the competitiveness of Hong Kong's asset management industry and strengthening investor protection.