In a global first, Hong Kong opens secondary trading for tokenised public funds

The Hong Kong Securities and Futures Commission (SFC) has approved the world's first-ever secondary trading of tokenised public funds, solidifying the city's role as a pioneer in tokenised finance. Investors can now trade two tokenised money market funds – one in Hong Kong dollars and the other in US dollars – on an SFC-licensed virtual asset trading platform (VATP).

This development, jointly launched by ChinaAMC (Hong Kong) and fintech company PantherTrade, allows retail investors to trade these funds around the clock, including weekends and public holidays, marking a significant upgrade in time sovereignty over fund management.

The SFC adapted existing regulatory frameworks governing VATPs and exchange-traded funds (ETFs) to enable trading of tokenised public funds, ensuring investors' protection standards remain intact while unlocking liquidity. Katie He, head of strategic business at China Asset Management (Hong Kong), emphasized the innovation's importance beyond the product itself, highlighting Hong Kong's institutional advantage in compliant digital financial innovation and the execution capability of the overall market.

Elisa Ng, executive director of investment products at the SFC, noted that the new framework added a crucial building block – 24/7 trading capability – to Hong Kong's evolving tokenisation ecosystem. This move reflects the city's ongoing efforts to expand tokenisation, aiming to strengthen its position as a leading fintech hub. HSBC recently launched HSBCnio, a platform that enables AI tools to access authorized bank account and transaction information, further illustrating Hong Kong's commitment to integrating AI into financial services.