Hong Kong's securities regulator has published a comprehensive strategic action plan on September 23, designed to support the implementation of the city's first five-year development plan and the 2026 policy address.

The blueprint, released by the Securities and Futures Commission, outlines a series of short, medium, and long-term initiatives aimed at driving high-quality growth in Hong Kong's capital markets and solidifying its competitive edge as an international financial hub.

The plan aligns with the policy objectives set forth in the five-year roadmap and the policy address, encompassing key areas such as market development, RMB internationalization, cross-border connectivity, wealth management, risk management, market quality, and financial security.

Where the journey begins

Addressing the goal of strengthening Hong Kong's status as the world's leading offshore RMB business hub, SFC Chairman Dr. Wong Tin-yau emphasized the city's unique position. He stated that Hong Kong serves as a distinctive and trusted bridge between mainland China and the global community, and that the commission's mission is to further consolidate and enhance this advantage to better serve the nation's development while creating value for international investors and the real economy.

Dr. Wong described the strategic action plan as both a proactive response to the national and government development directions and a vital blueprint for the long-term growth of Hong Kong's capital markets. He expressed confidence that by reinforcing traditional strengths, cultivating new growth drivers, and continuously improving market quality and integrity, the city would elevate its competitiveness and appeal as a global financial center.

The chairman added that the SFC would lay the groundwork for deepening the breadth and depth of Hong Kong's RMB ecosystem, continue optimizing the connectivity mechanisms, foster market innovation, and bolster the international competitiveness of the local capital markets through enhanced efficiency and liquidity.

Collaboration at the core

SFC Chief Executive Officer Ms. Leung Fung-yee noted that as Hong Kong's capital markets enter a new phase of development, the commission would intensify communication and cooperation with industry stakeholders to ensure market participants fully grasp regulatory requirements and strategic directions. She also highlighted plans to strengthen collaboration with mainland and overseas regulators to jointly promote cross-border market connectivity and financial innovation.

Ms. Leung further stressed that while advancing market development, the SFC remains committed to its core mission of safeguarding market quality, integrity, and investor protection. She underscored that financial security is a crucial foundation for sustainable market growth, and that the commission would leverage advanced technologies, including artificial intelligence, to enhance risk monitoring, supervision, and enforcement capabilities, thereby supporting the robust development of Hong Kong's financial markets.

The SFC expressed confidence that with strong support from the central government, proactive leadership from the Hong Kong Special Administrative Region government, and active participation from the industry, Hong Kong will further fulfill its vital roles as an international financial center, a global offshore RMB business hub, an international asset and wealth management center, and a global risk management center, making greater contributions to the nation's high-level opening-up and Hong Kong's long-term prosperity and stability.

Key measures outlined in the blueprint

The strategic action plan's primary measures are detailed below.