Christopher Hui: Hong Kong is studying the risks posed by agentic AI and response measures

Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, said at the Fintech Week that the Financial Services Development Council is studying the risks posed by agentic AI and response measures, noting that generative AI sandbox testing has been expanded from the banking sector to the securities and insurance sectors, and stressing the need to ensure coverage across different areas of the financial industry, including the Trillions of MPF. He pointed out that with the rise of agentic AI, there is an increasing amount of false and fabricated information to lure investors. The authorities will consult the market within this year on how to formulate a legal framework to ensure early detection and elimination of deepfake advertisements and the like, so as to protect investors from being misled. He mentioned that HKEX (00388) is preparing to launch a multi-asset tokenization platform within this year, which will initially pilot carbon credit trading and will also include warehouse receipts from London Metal Exchange (LME) warehouses in Hong Kong. He said that to promote the sustainable development of the fintech industry, an appropriate regulatory system needs to be established, and the authorities plan to submit a bill to the Legislative Council before the end of the year to regulate digital asset advisory services, trading, custody and management.