Regarding digital asset development policy, Acting Secretary for Financial Services and the Treasury Chan Ho-lim stated in response to a legislator's question that the authorities and the industry are actively advancing various initiatives, gradually translating policy vision into substantive progress and market outcomes.

In terms of expanding the variety of tokenised products, the Hong Kong government has made tokenised bond issuance a routine practice and issued the fourth batch of digital green bonds in September this year, with a total amount of approximately HK$20 billion, further improving the digital ecosystem and taking a leading role in the development of tokenised investment products. As of the end of September 2026, the Securities and Futures Commission (SFC) had authorised 13 tokenised money market funds, one tokenised gold investment product, two gold ETFs with tokenised shares, and one covered call ETF with tokenised shares. The assets under management of the tokenised shares of these 17 retail investment products currently amount to approximately HK$10.3 billion. With the SFC's approval, two SFC-authorised tokenised money market funds also began round-the-clock secondary market trading on licensed virtual asset trading platforms on 26 October.

In terms of optimising the legal and regulatory framework, the authorities continue to clarify compliance pathways, aiming to promote responsible innovation and sound market development while upholding risk management and investor protection. Among these efforts, the Hong Kong government and the SFC will submit a bill to the Legislative Council by the end of this year to amend the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), expanding the current regulatory regime applicable to virtual asset trading platforms to cover virtual asset trading, advisory, management, and custody services. To promote market development, the Hong Kong government and financial regulators adhere to the principle of "same business, same risk, same rules," promoting the steady development of virtual assets and tokenised investment products, as well as related businesses, in Hong Kong through a risk-based and technology-neutral regulatory approach. The relevant regulations align with the standards of traditional financial services and securities, with appropriate adjustments made for the characteristics of virtual assets and tokenised investment products, in order to fully protect investors while promoting responsible innovation in the industry.

In terms of advancing application scenarios and cross-sector collaboration, following the implementation of the Stablecoins Ordinance (Cap. 656) in August last year, the Hong Kong Monetary Authority granted two stablecoin issuer licences in April this year. The application scenarios for the relevant stablecoins are broad, covering cross-border payments, local payments, and tokenised asset transactions, serving different types of users. In these application scenarios, stablecoins can enhance transaction efficiency and reduce transaction costs, thereby creating tangible value for the real economy. The Hong Kong government also supported Cyberport in launching the "Blockchain and Digital Asset Pilot Subsidy Scheme" in June last year, which successfully funded nine pilot projects covering real-world asset tokenisation, payment and stablecoin infrastructure, security and risk management, and decentralised identity, among other areas. As of June this year, the scheme facilitated a total of HK$230 million in asset tokenisation, with six of the projects having entered commercial application. Recognising the tangible benefits the scheme has brought to the market, the Hong Kong government announced on 2 November its support for Cyberport to launch the scheme again, with applications beginning on the same day. In addition, the Hong Kong government is also promoting, through the EnsembleTX project jointly led by the SFC and the HKMA, industry exploration of using tokenised deposits in tokenised money market fund transactions to manage liquidity and funding needs in real time.

In terms of talent and partner development, the Hong Kong government continues to promote talent training and development in the Web 3.0 industry, with particular focus on blockchain applications and digital asset innovation, while also striving to attract global digital asset professionals to Hong Kong. Among these efforts, the Hong Kong government has allocated substantial funding to support Cyberport in developing the Web 3.0 ecosystem, providing physical and online courses, bootcamps, seed funds, and internship opportunities through collaboration with academic institutions, and establishing the "Web3.0 Investor Network" to promote talent cultivation, industry application, and public awareness. As of the end of September 2026, related activities have brought together over 320 enterprises, and the relevant courses have received over 7,000 participants, achieving notable results. In addition, digital asset and Web3.0 professionals can settle in Hong Kong through various channels. Chan Ho-lim also mentioned that the Hong Kong government and the SFC attach great importance to the quality of licensed virtual asset trading platforms in order to properly manage risks and fully protect investors. International virtual asset trading platforms may apply to the SFC for a licence as long as they meet the relevant statutory requirements and the SFC's regulatory requirements. The SFC and Invest Hong Kong have also engaged with these international platforms to introduce Hong Kong's regulatory requirements and market opportunities. In fact, the SFC has in recent years gradually broadened the products and services that licensed platforms may offer, facilitated access to global liquidity, and allowed the development of more digital assets and tokenised products under appropriate safeguards. As mentioned above, the Hong Kong government and the SFC will also soon submit a bill to the Legislative Council to bring more types of virtual asset services under the regulatory regime, promoting the participation of more diversified international service providers in Hong Kong. The Hong Kong government and the SFC will continue to enhance the competitiveness of Hong Kong's digital asset market through clear regulation, talent and infrastructure development, and international cooperation.