Finance Minister of Hong Kong advocates for internationalization of HKEX, emphasizing the need for preparations for the forthcoming stage.
Hong Kong Steps Up Game to Woo Overseas Companies with Digital Asset Products
In a bid to boost its appeal to overseas companies and introduce new trading options for digital assets, Hong Kong's finance minister has urged the city's bourse operator to take swift action. Addressing a gathering at the 25th anniversary celebration of Hong Kong Exchanges and Clearing (HKEX), Financial Secretary Paul Chan Mo-po highlighted the need for HKEX to become more international and technologically advanced.
Chan stressed the importance of HKEX's expansion, considering that 60% of the 2,600 listed companies are from mainland China and account for 80% of the market capitalization. Aiming to establish Hong Kong as a haven for global investors seeking to diversify their portfolios, Chan suggests that HKEX could become a preferred listing platform for companies from regions like Southeast Asia, the Middle East, and others finding it challenging to access capital markets in the US or Europe.
To facilitate this transformation, Hong Kong is focusing on expanding its fintech ecosystem and reinforcing its role in the global digital asset market, which currently boasts a market value over $3 trillion. To achieve this, the Hong Kong Securities and Futures Commission (SFC) is planning to introduce virtual asset derivatives trading specifically for professional investors. This move aims to tap into the growing demand for cryptocurrencies while maintaining sound risk management to ensure secure and orderly trading.
The derivatives offering will facilitate efficient risk transfers, boost liquidity in the underlying cryptocurrency spot markets, and enable investors with experience to use hedging and leveraging strategies with digital assets. Additionally, earlier in 2025, the SFC approved licensed virtual asset trading platforms and exchange-traded funds (ETFs) to offer staking services, allowing investors to earn additional returns.
Besides broadening digital asset-related product offerings, Hong Kong is focused on attracting overseas companies by ensuring regulatory clarity and maintaining a strong regulatory framework with robust risk controls. This strategy aims to provide a safe, transparent, and secure trading environment for new digital products, appealing to global investors and issuers. As a result, ten digital asset platform licenses have been granted in Hong Kong, with eight additional license applications currently under review.
In conclusion, Hong Kong's efforts to expand its digital asset-related product offerings, strengthen its fintech ecosystem, and provide a safe and transparent trading environment make its stock exchange more appealing to overseas companies seeking a receptive capital market environment with digital asset trading options.
The financial secretary, Paul Chan Mo-po, emphasized the importance of Hong Kong Exchanges and Clearing (HKEX) becoming more international and technologically advanced, suggesting it could become a preferred listing platform for companies from regions like Southeast Asia and Middle East, aiming to attract global investors seeking diversification opportunities in the business world. To achieve this, the Hong Kong Securities and Futures Commission (SFC) is planning to introduce virtual asset derivatives trading specifically for professional investors, with the goal of tapping into the growing demand for cryptocurrencies while ensuring secure and orderly trading in the finance sector.
