Hong Kong is trying to additional combine tokenization into its financial actions. The Monetary Companies and Treasury Bureau Director, Christopher Hui, revealed Hong Kong’s plans to combine blockchain expertise into its finance business.
Throughout interviews performed by Southern Finance twenty first Century Financial Report, the Monetary Companies and Treasury Bureau Director, Christopher Hui, mentioned that Hong Kong is deliberately guiding monetary expertise to “flip from digital to actual.” The nation intends to attain this through the use of blockchain expertise to help its financial actions.
Hui defined that tokenization will probably be used to enhance effectivity in areas reminiscent of worldwide transport, leasing, and company fund administration.
This yr, Hong Kong issued its third batch of digital inexperienced bonds. It doubles as the most important digital bond issuance on the earth, totaling HK$10 billion. The batch was issued underneath Hong Kong’s up to date Digital Asset Improvement Coverage Declaration 2.0.
Hong Kong is executing a tokenization technique
Within the digital forex house, Hong Kong has accomplished the required laws for stablecoins, and its licensing functions are already underneath overview. The federal government goals to difficulty the primary batch subsequent yr, however will strictly restrict the preliminary licenses.
The Dangle Seng Index has risen greater than 30% this yr, and the Dangle Seng Tech Index has risen by almost 40%. Each are impressively outperforming many main world markets, however Hong Kong’s tokenization technique is designed to draw long-term world capital.
Hui confirmed that the Hong Kong Inventory Trade (HKEX) is already technically suitable with T+1, and that the subsequent step is upgrading brokerage programs. A session paper will probably be launched subsequent yr to set a transparent timetable for the transition from the T+2 cycle that has been in use.
HKEX estimates that by the top of 2027, 88% of world inventory markets will function on T+1 or T+0. These quicker settlements will strengthen Hong Kong’s connectivity with mainland A-shares and enhance total market effectivity.
Hui additionally acknowledged that Hong Kong is making upgrades that may align with accepted worldwide market constructions and defend minority buyers. Public session on these modifications is anticipated subsequent yr.
Capital market reforms
This yr, Hong Kong turned a part of the London Metallic Trade’s world supply community, and inside simply 9 months, over 8,000 tons of non-ferrous metals have been warehoused within the metropolis.
The federal government has additionally acknowledged the significance of gold as a retailer of worth. The common every day buying and selling volumes of Hong Kong-traded “99 gold” reached HK$940 million in 2024, rising 28% year-on-year, and exceeded HK$1.2 billion in early 2025.
To strengthen its place in world gold pricing, the Hong Kong authorities plans to broaden its gold storage capability to 2,000 tons inside three years and launch a central gold settlement system subsequent yr.
The federal government additionally plans to strengthen its relationship with the Shanghai Gold Trade, which opened its Hong Kong warehouse in June.
Almost 10,000 overseas-parented corporations now function in Hong Kong. Mainland companies signify over 26% and lots of of them have shifted from simply exporting merchandise to being a part of industrial and supply-chain setups abroad, creating demand for Hong Kong’s financing, danger administration, accounting, and insurance coverage providers.
Hong Kong is now contemplating utilizing tax incentives to draw these enterprises to determine world treasury facilities within the metropolis. It has additionally modified its legal guidelines to permit corporations registered overseas to re-domicile in Hong Kong. Almost 20 functions have already been obtained since then.
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