Hong Kong Securities and Futures Commission: Expects a surplus of HK$1.49 billion for the 2026-27 fiscal year and plans to create 18 new positions to be responsible for digital assets and other tasks.

On January 28, the documents submitted by the Securities and Futures Commission of Hong Kong to the Financial Affairs Committee of the Legislative Council of Hong Kong showed that the Securities and Futures Commission of Hong Kong expects a surplus of 1.49 billion Hong Kong dollars for the financial year 2026-27, and there are no plans to revise the trading levy rate of 0.0027% in the next financial year. The Securities and Futures Commission of Hong Kong assumes that the average daily turnover of the securities market in the next financial year will be 256 billion Hong Kong dollars, and the average daily trading volume of the futures and options market will be 545,000 contracts. It is expected that the revenue from licensing fees will be 260 million Hong Kong dollars, and the estimated revenue during the period will be 4.15 billion Hong Kong dollars, which is a 2.8% increase from the forecast revenue of 2025-26. The Securities and Futures Commission of Hong Kong expects that the operating expenses for the next financial year will increase by 9.1% to approximately 2.66 billion Hong Kong dollars, with an expected increase in personnel expenses of over 150 million Hong Kong dollars, including filling vacancies, salary adjustments, promotions, etc. The overall salary increase is expected to be 3%, with the final amount pending approval from the remuneration committee and the board of directors. The Securities and Futures Commission of Hong Kong plans to create 18 new positions in the next financial year, increasing the total headcount to 1,055 people. Six positions will be responsible for the proposed new regime for digital asset trading and custody service providers, as well as licensing and regulatory work. The remaining 12 positions will be aimed at handling the significant increase in initial public offerings and providing manpower support for enforcement investigations, market surveillance, etc. The capital expenditure for the next financial year is expected to be approximately 630 million Hong Kong dollars, involving the completion of the purchase agreement for the Hong Kong Island East Center office signed in 2023, and the development of computer systems, among others. As of the end of March, the total reserves are expected to be nearly 9.46 billion Hong Kong dollars, with roughly 50% made up of property-related assets. After taking into account the surplus for the next financial year, the total reserves by the end of March next year will increase to 10.95 billion Hong Kong dollars. The Hong Kong SAR government noted that the Securities and Futures Commission of Hong Kong did not request any funding from the Legislative Council of Hong Kong. They expect to continue strict control over expenses, improve efficiency through reallocation of existing resources and process restructuring.