Hong Kong SFC's Wong Tin-yau: Auditing and Integrity Are the Cornerstones of a Financial Centre; Precise Regulation Cannot Replace Moral Conduct

Hong Kong SFC Chairman Wong Tin-yau said reliable financial reporting and independent auditing are the foundation for Hong Kong to maintain its status as an international financial centre, but stressed that precise regulation alone cannot replace professional scepticism and ethical conduct, and urged all market participants to jointly safeguard market integrity and investor confidence. He stated plainly that while a successful financial centre depends on the scale of capital, the number of listed companies and product choices, what underpins every investment decision is whether investors can trust financial information. Speaking at the Accounting and Financial Reporting Council's 2026 Regional Regulatory Forum, Wong Tin-yau noted that without reliable financial reporting, investors would be unable to accurately identify a company's true performance versus verbal promises, nor distinguish sustainable value from short-term illusions. Capital may flow in temporarily, but will not stay for the long term. He reiterated that "integrity is at the core of maintaining international financial centre status, depending not only on the final data, but also on the process by which data is prepared, questioned and confirmed." Within the financial reporting ecosystem, he emphasised that corporate preparers, boards, audit committees and auditors each have their roles, while regulators are responsible for setting standards, incentives and defensive boundaries. However, no matter how sophisticated the regulatory system, it cannot replace professional scepticism, sound judgement, ethical conduct and responsible leadership. Before becoming SFC Chairman, Wong Tin-yau served as Chairman of the Accounting and Financial Reporting Council (AFRC). He noted that although the two regulators approach the financial reporting ecosystem from different angles, they share the same goal safeguarding market integrity and investor confidence through transparency, accountability and good corporate governance. Amid geopolitical uncertainty, rapid technological change and evolving audit delivery models, global markets all face challenges. Wong Tin-yau called on the profession to use this opportunity to examine three core issues: the risks most deserving of attention, how regulators should respond, and the capabilities, market structure and professional conduct needed to sustain quality and trust in the long run.