Core Viewpoint - Hong Kong Exchanges and Clearing Limited (HKEX) is seeking market feedback on proposals to optimize the listing framework for structured products, with the consultation period lasting six weeks until November 11, 2025 [1] Group 1: Market Development - The structured products market in Hong Kong has shown continuous growth, with new products and related asset scales expanding, leading to increased trading volumes [1] - Hong Kong's derivatives market has maintained its position as the global leader in structured product trading volume for 17 consecutive years, with recent daily trading volumes exceeding HKD 20 billion [2] Group 2: Reform Proposals - The reform proposals focus on three main areas: enhancing market competitiveness, improving market quality and investor protection, and increasing market efficiency [2][3][4] - Specific recommendations include lowering the minimum issuance price for derivative warrants from HKD 0.25 to HKD 0.15 and removing the minimum issuance price for bull and bear certificates, allowing issuers greater flexibility to meet retail investor needs [6][7] Group 3: Investor Benefits - Structured products offer several advantages for investors, including diversified investment choices, capital efficiency due to leverage, the ability to implement various trading strategies, and serving as risk management tools [5] - The proposed changes aim to enhance the product offering, making it more aligned with investor demands and improving capital efficiency [8] Group 4: Regulatory Adjustments - The consultation document suggests adjusting the eligibility criteria for ETFs as related securities for structured products, lowering the asset management threshold from HKD 40 billion to HKD 10 billion [6][7] - Recommendations also include increasing the minimum net asset value requirement for issuers from HKD 20 billion to HKD 50 billion, ensuring that issuers maintain financial stability and responsibility [6][7]

Core Viewpoint - Hong Kong Exchanges and Clearing Limited (HKEX) is seeking market feedback on proposals to optimize the listing framework for structured products, aiming to enhance product innovation, market efficiency, and investor protection [1][2]. Summary by Sections Market Competitiveness - The proposals aim to enhance the competitiveness of the structured products market in Hong Kong, which has maintained its position as the global leader in structured product trading for 17 consecutive years, with a recent average daily trading volume exceeding HKD 20 billion [2][8]. Market Quality and Investor Protection - Recommendations include raising the minimum net asset value requirement for issuers from HKD 2 billion to HKD 5 billion, ensuring that issuers are regulated entities and have investment-grade ratings from credit rating agencies [7][8]. - The consultation also suggests improving the ongoing responsibilities of issuers to ensure financial stability and compliance with market standards, thereby enhancing investor protection [8]. Market Efficiency - The proposals include lowering the minimum issuance price for derivative warrants from HKD 0.25 to HKD 0.15 and removing the minimum issuance price for bull and bear certificates, which will provide issuers with greater flexibility to meet retail investor needs [7][8]. - Changes to the eligibility criteria for ETFs as underlying securities for structured products will lower the threshold to a total asset management size of HKD 1 billion, facilitating the development of a product ecosystem around ETFs [8].