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Cards Wire 11 segments
SFC SFC Hong Kong Source document ↗
SFC Hong Kong AI, Technology & Data ✓ 20 claims 02 Nov 2026

SFC survey finds 30% of large Hong Kong firms already using agentic AI

The SFC's first Large Firm AI Readiness Survey maps how far agentic AI has moved into Hong Kong trading, drafting and operational workflows, and signals where the regulator will focus supervisory attention as autonomy increases. It matters because the findings, not a rulebook, are shaping the SFC's next moves on accountability and controls.

  • 30% of surveyed firms already use agentic AI in business operations and 25% are piloting it, with varying autonomy and human involvement.
  • 95% of firms expect their AI use to accelerate over the next 12 months, and 90% have connected AI tools to internal systems.
  • 90% of firms are using or evaluating frontier AI models for cyber defence, reporting faster analysis and broader detection coverage.
  • The survey covered 12 large global firms, five large Chinese Mainland firms and three large online retail brokers, whose affiliated licensed corporations accounted for over 75% of securities transactions reported for the six months ended 30 June 2026.
  • The SFC's four supervisory priorities arising from the findings are investor protection, cybersecurity and operational resilience, AI governance and accountability, and capability building through engagement.
Source document
SFC SFC Hong Kong Source document ↗
SFC Hong Kong Governance & Accountability ✓ 12 claims 30 Oct 2026

SFC confirms new two-year Process Review Panel term from November 2026

The SFC has confirmed the membership of its Process Review Panel for a fresh two-year term beginning in late 2026. The panel is the independent body that scrutinises how the regulator handles individual cases and whether its internal procedures hold up. This item covers who sits on it, for how long, and why the appointment matters to anyone whose dealings with the SFC can be reviewed.

  • The reconstituted PRP serves a two-year term commencing on 1 November 2026.
  • The Financial Secretary reappointed the Chairman and 10 incumbent members and appointed two new members, Mr Simon Fok Chung-yin and Ms Angie Li Yick-yee.
  • Established in November 2000, the PRP independently reviews the SFC's case handling and advises on the adequacy of its internal procedures and operational guidelines.
Source document
SFC SFC Hong Kong Source document ↗
SFC Hong Kong Governance & Accountability ✓ 10 claims 30 Oct 2026

SFC flags HKEX's 2026 trading system recovery rehearsal for 21 November

A short circular notifying licensed intermediaries of HKEX's scheduled rehearsal for emergency trading system recovery, with specific obligations for Exchange Participants under the Investor Identification Regime. Relevant for compliance and operations teams at SFC-licensed firms that need to plan enrolment and participation.

  • HKEX's annual emergency trading system recovery rehearsal runs from 11:00am to 3:10pm on 21 November 2026 (Saturday).
  • All Relevant Regulated Intermediaries are covered by the BCAN-CID Mapping File and Reporting Forms submission process tested in the rehearsal.
  • BCAN tagging for order submission to SEHK's trading system applies exclusively to RRIs that are Exchange Participants.
  • Only EP RRIs must submit the Notification Form for Participation before the rehearsal and the Rehearsal Evaluation Reply Form after completion.
  • Non-EP RRIs require no enrolment, and further details are set out in SEHK's circular dated 30 October 2026.
Source document
SFC SFC Hong Kong Source document ↗
SFC Hong Kong Markets & Infrastructure ✓ 21 claims 28 Oct 2026

SFC launches 15-day fast-track authorisation for funds from MRF jurisdictions

Hong Kong's SFC has created a new accelerated authorisation route for simple retail funds domiciled in jurisdictions with which it holds mutual recognition arrangements. This circular sets out which funds qualify, the compressed timeline, and the pilot period during which the SFC will decide whether to make it permanent.

  • FASTrack targets authorisation within 15 business days of a complete application, against the standard one-to-two month and non-standard two-to-three month targets.
  • The SFC will take up or refuse an application within five business days and, if taken up, grant authorisation within 10 further business days.
  • Eligible funds must be equity, bond or mixed funds, index-tracking ETFs or unlisted funds, or feeder funds whose master fund is FASTrack-eligible, and must not be complex products.
  • The management company must be located in an MRF jurisdiction or an SFC-acceptable inspection regime (AIR) jurisdiction with good regulatory records.
  • FASTrack took effect on 4 November 2024 with a six-month pilot period ending 4 May 2025, after which the SFC will consider formal adoption.
Source document
SFC SFC Hong Kong Source document ↗
SFC Hong Kong Markets & Infrastructure ✓ 14 claims 28 Oct 2026

SFC sets October 2027 deadline for fund liquidity tool overhaul

The SFC has issued guidance supplementing its 2016 liquidity circular, requiring managers of SFC-authorised funds to align redemption terms with asset liquidity and expand use of anti-dilution tools. The circular operationalises 2025 IOSCO recommendations and gives managers until October 2027 to comply.

  • Funds investing mainly in less liquid assets, meaning more than 50% of AUM, and offering daily dealing must implement anti-dilution tools.
  • Funds allocating more than 30% of AUM to illiquid assets should redeem at lower than daily frequency and/or require notice or settlement periods.
  • Managers must immediately report to the SFC when quantitative-based liquidity tools or other measures, except borrowing and credit facilities, are activated.
  • Compliance deadline is no later than 31 October 2027, the end of the 12-month transitional period from the UT Code's effective date.
  • Managers must classify fund assets as liquid, less liquid or illiquid based on quantitative and qualitative factors under normal and stressed conditions.
Source document
SFC SFC Hong Kong Source document ↗
SFC Hong Kong Markets & Infrastructure ✓ 24 claims 28 Oct 2026

SFC issues implementation guidance for revised fund code ahead of 2026 deadline

Hong Kong's SFC has published a package of circulars, FAQs and revised guides to help fund managers prepare for the revised Code on Unit Trusts and Mutual Funds, which takes effect 1 November 2026. The material covers derivatives exposure, liquidity risk management and money market fund disclosure, and is relevant to anyone managing or distributing SFC-authorised retail funds.

  • The revised UT Code was gazetted on 16 October 2026 and takes effect on 1 November 2026, following consultation conclusions issued 7 October 2026.
  • Funds will be subject to a 12-month transitional period, with new FAQs setting out implementation and transitional arrangements.
  • A revised derivatives guide introduces a Value-at-Risk approach, including calculation methodology and standards for managing funds' derivatives exposure.
  • A supplemental circular on liquidity risk management sets out enhanced requirements for assessing asset and portfolio liquidity, redemption terms, and the design and use of liquidity risk management tools.
  • Updated money market fund guidance sets minimum credit quality standards for eligible high-quality instruments and enhanced key facts statement disclosure for MMFs offering a constant NAV.
Source document
SFC SFC Hong Kong Source document ↗
SFC Hong Kong Digital Assets ✓ 17 claims 26 Oct 2026

SFC approves first secondary trading of tokenised funds on licensed platform

Hong Kong's SFC has greenlit secondary trading of tokenised public funds on a licensed virtual asset trading platform, the first such approval globally. The item covers the regulatory framework behind the launch, the two funds involved, and the SFC's stated plans for expanding product scope.

  • The SFC approved secondary trading of two tokenised money market funds, ChinaAMC HKD Digital Money Market Fund and ChinaAMC USD Digital Money Market Fund, on a licensed VATP.
  • Secondary trading began on the date of the announcement and operates on a 24/7 basis.
  • The SFC issued the Circular on secondary trading of tokenised SFC-authorised investment products on 20 April 2026, setting out requirements on trading channel operation, fair pricing, liquidity provision and disclosure.
  • The SFC will monitor trading activity before deciding whether to broaden the product scope beyond money market funds.
  • The framework builds on the SFC's existing regulatory regimes for exchange traded funds and virtual asset trading platforms.
Source document
SFC SFC Hong Kong Source document ↗
SFC Hong Kong Financial Crime ✓ 12 claims 16 Oct 2026

SFC to hold two AML/CFT webinars for intermediaries on 12-13 November 2026

The SFC has announced a two-session AML/CFT webinar covering regulatory updates, supervisory observations, scam typologies and suspicious transaction reporting feedback. Compliance officers and management with AML/CFT responsibility should note the enrolment deadline and the firm-level cap on attendee numbers before registering.

  • The SFC will host AML/CFT webinar sessions on 12 and 13 November 2026 via Zoom.
  • Each firm may submit only one enrolment form, due by 27 October 2026.
  • Enrolment is capped at a maximum of two representatives per firm.
  • Places are allocated first-come, first-served, with first nominees prioritised ahead of second nominees.
  • Attendees completing the whole session can earn 2.5 Continuous Professional Training hours.
Source document
SFC SFC Hong Kong Source document ↗
SFC Hong Kong Markets & Infrastructure ✓ 12 claims 16 Oct 2026

SFC backs HKEX plan to shift Hong Kong stock settlement to T+1 by September 2028

HKEX has finalised its approach to moving Hong Kong's cash equities market from T+2 to T+1 settlement, with the SFC publicly endorsing the plan. This item covers the revised implementation date, the SFC's rationale, and what firms need to start preparing for ahead of a multi-year transition.

  • HKEX issued its Consultation Conclusions on Accelerated Settlement for the Hong Kong Cash Market on 16 October 2026.
  • The implementation timeline has been revised to the second half of 2028, with September 2028 identified as the target date.
  • Under T+1, securities transactions settle one business day after trade date, compared with two business days under the current T+2 cycle.
  • The transition will require consequential amendments to relevant rules and procedures, which the SFC will work on with HKEX.
  • The SFC's Rico Leung urged industry participants to begin preparations early and coordinate with counterparties and service providers.
Source document
SFC SFC Hong Kong Source document ↗
SFC Hong Kong Conduct & Consumer ✓ 18 claims 16 Oct 2026

SFC flags IPO resourcing gains but warns on dubious bookbuilding arrangements

Hong Kong's securities regulator reports measurable improvement in sponsor resourcing since its January circular, while simultaneously disclosing newly identified red flags around dubious IPO funding, allocation and post-listing arrangements. The circular sets fresh guidance on what counts as an Active Listing Engagement and spells out escalation duties for sponsors, overall coordinators and capital market intermediaries.

  • Strained Sponsors fell from 9 to 2 and Strained Principals from 45 to 10 between 30 January and 30 September 2026, a 78% decrease in both.
  • As of 30 September 2026 there were over 610 active listing applications involving 64 Sponsors and 325 signing Principals, up from over 420 applications, 53 Sponsors and 261 Principals in January.
  • The SFC received 210 Principal submissions between January and September 2026, of which 50 were returned or withdrawn for incomplete information or fundamental issues.
  • A December 2025 joint letter with SEHK cited concerns from 57 listing applications across 13 Sponsors; vetting was suspended for 65 applications, with 14 resumed by 1 October 2026.
  • The SFC lists six red flags for dubious IPO arrangements, including undisclosed investor funding, concentrated allocations directed by the listing applicant, and derivatives concealing ultimate investor identity.
Source document
SFC SFC Hong Kong Source document ↗
SFC Hong Kong Financial Crime ✓ 18 claims 11 Oct 2026

SFC fines Zheng Da $7 million over client-supplied trading systems and AML control gaps

The SFC fined a Hong Kong futures broker and suspended its responsible officer over anti-money-laundering failures tied to client-supplied trading systems connected via API. Worth a few minutes to see how CSS-through-API arrangements and the Manager-In-Charge regime are being enforced, and why carrying on despite peer enforcement aggravated the outcome.

  • Zheng Da reprimanded and fined $7 million for AML/CFT and other failures between 1 December 2021 and 30 September 2023.
  • Responsible officer Zhong Hao suspended for seven months, from 28 September 2026 to 27 April 2027.
  • SFC found no due diligence or testing on customer-supplied systems used by 160 clients, and 176 undetected same-second matched buy/sell orders.
Source document