Hong Kong Securities and Futures Commission: The average daily turnover of the Hong Kong stock connect program has surged by 84% year-on-year to HK$124.1 billion.

On June 24, the Securities and Futures Commission of Hong Kong released the "Report for 2025-26", showing that the Hong Kong capital market achieved significant growth in various asset categories in the past year, including investment funds, digital assets, and the stock market, consolidating Hong Kong's position as a leading international financial center. The Shanghai-Hong Kong Stock Connect remained a strong driver of market trading: the daily trading volume of the Hong Kong stock market increased by 84% year-on-year to HK$124.1 billion, accounting for a record high of 24% of Hong Kong's market turnover. As for the Shanghai-Hong Kong Stock Connect, the cumulative funds flowing into mainland China stocks since its launch have reached RMB 1.47 trillion, once again confirming Hong Kong's key role as a gateway to the mainland. In addition, the average trading volume of the Shanghai-Hong Kong Stock Connect accounted for 6.3% of the mainland market turnover last year. The report stated that under the global regulatory system, the asset management industry in Hong Kong has flourished, with strong growth in exchange-traded funds (ETFs) and funds registered in Hong Kong. The digital asset ecosystem continues to expand through innovative products and services. At the same time, stock market reforms and further integration with the mainland market have deepened, enhancing the depth and breadth of the Hong Kong market. Dr. Carlson Tong, Chairman of the Securities and Futures Commission of Hong Kong, emphasized: "The Securities and Futures Commission of Hong Kong plays a dual role as the guardian and promoter of the market, striving to enhance investor confidence, promote capital formation, and drive the open, inclusive, and sustained prosperity of the Hong Kong capital market. Faced with emerging challenges, the Securities and Futures Commission of Hong Kong will continue to focus on strategic priorities to consolidate Hong Kong's irreplaceable role as a core bridge connecting the mainland and international financial markets." Ms. Ashley Alder, Chief Executive Officer of the Securities and Futures Commission of Hong Kong, said: "In this rapidly changing era, the Securities and Futures Commission of Hong Kong is firmly committed to enhancing market resilience and promoting market transformation and technological innovation. The executive team of the Securities and Futures Commission of Hong Kong is dedicated to promoting responsible innovation in the market and actively building a future-oriented financial ecosystem." In terms of asset and wealth management, Hong Kong has consolidated its position as a global hub in the past year. The Securities and Futures Commission of Hong Kong recognizes that ETFs and leveraged and inverse products are rapidly growing sectors. As of the end of the fiscal year in March 2026, the daily trading volume of these products increased by 50.6% year-on-year to HK$38.1 billion, while the total market value increased by 25.2% to HK$651.2 billion. In particular, the market value of single stock leveraged and inverse products surged by 60 times within the year. Additionally, driven by strong net capital inflows, the total value of assets under management of funds registered in Hong Kong jumped by 19.4% to HK$2.3 trillion. The development of the digital asset ecosystem is also thriving. Tokenized investment products have accelerated in growth, with the total value of assets under management of 13 retail products approved by the Securities and Futures Commission of Hong Kong increasing nearly six times year-on-year to HK$10.8 billion as of March. Meanwhile, the total market value of 11 spot ETFs for virtual assets has grown by 90% since their launch in 2024, and the trading volume of 12 licensed virtual asset trading platforms has increased by 125% over the past year. To sustain high-quality growth, the Securities and Futures Commission of Hong Kong is cooperating with the government to complete the legislative work on four new regulatory regimes, including virtual asset trading, custody, advice provision, and management. Regarding the stock market, enhancing competitiveness remains a key focus of the year. As of March, post-listing financing in Hong Kong increased steadily by 18% year-on-year to HK$259 billion, while the amount raised in initial public offerings soared by 272% to HK$379 billion. Additionally, with the support of reform measures, liquidity and efficiency in the secondary market have improved: the daily trading volume in the Hong Kong market recorded a 54% increase, reaching a new high of HK$258 billion, and after the introduction of the first stage of measures to lower the minimum tick size, the buying and selling spread of relevant stocks narrowed by 38%, and the execution time improved by 26%. Other highlights include: a) With the introduction of the TechLink scheme, the listing activities of new economy companies continue to flourish, with the total amount raised by special technology and biotechnology companies in new listings skyrocketing by 660% year-on-year to over HK$42 billion last year. In order to improve the quality of listings, the Securities and Futures Commission of Hong Kong has conducted thematic inspections of specific sponsors following issues raised about potential misconduct in early 2026. b) As a market connectivity mechanism to hedge mainland interest rate risks, the Cross-border Interconnectivity has seen increased investor participation, with a record high monthly trading volume (reaching RMB 821 billion in March 2026). As of March, the total trading volume of RMB interest rate swap contracts exceeded RMB 11.6 trillion. c) In April 2026, the Securities and Futures Commission of Hong Kong successfully facilitated auditors to compensate for false and misleading financial statements for the first time, marking a milestone in seeking compensation for investors. The Securities and Futures Commission of Hong Kong reached an agreement with auditors of a collapsed company, whereby the auditors will set aside HK$1 billion for compensation to independent minority shareholders. d) To enhance investor education, the Securities and Futures Commission of Hong Kong expanded its anti-fraud outreach activities through community events during the year, and opened an official account on Xiaohongshu (Little Red Book) in April this year, attracting over 20,000 followers by May.