Core Insights - Hong Kong's Financial Secretary, Paul Chan, is promoting investment opportunities in finance and innovation sectors during his visit to London [1][3] - Hong Kong has experienced GDP growth for 11 consecutive quarters, with a revised annual growth forecast of 3.2% [3][4] - The tourism sector is recovering strongly, with an expected 49 million visitors to Hong Kong this year [3][4] Group 1: Economic Development - Hong Kong is positioned as a global leader in digital assets and the third generation of the internet, having recently issued the world's largest tokenized green bond [4] - The city is actively expanding its commodity trading market, with 12 metal warehouses recognized by the London Metal Exchange [4] - The Northern Metropolis area is identified as a key platform for innovation and technology development, with government incentives to attract businesses [4] Group 2: International Relations - Meetings with family offices and financial institutions from Europe, the Middle East, and Asia were held to discuss collaboration opportunities [3] - Discussions with the Chinese Ambassador to the UK focused on Hong Kong's future development and Sino-British relations [3]

Group 1 - Hong Kong's Financial Secretary, Paul Chan, announced the collaboration between the Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority to study the applicability of existing laws to tokenized bonds, with details to be released in the first half of next year [1] - The Hong Kong Monetary Authority's Ensemble project has officially entered the trial phase, focusing on the use of tokenized deposits in tokenized currency market fund transactions, marking a significant milestone in Hong Kong's tokenization process [2] - The Hong Kong government recently issued its third batch of tokenized green bonds, totaling a record high of HKD 10 billion, making it the largest tokenized bond issuance globally [1] Group 2 - The Hong Kong Securities and Futures Commission has issued new circulars allowing licensed virtual asset trading platforms to share global order books with their overseas affiliates, enhancing local investors' access to global market liquidity [1] - The government aims to establish over 20 cross-border data verification platform applications in the financial sector between Hong Kong and Shenzhen by the end of 2027, leveraging both regions' strengths in fintech [2] - Hong Kong is working on a licensing regime for digital asset trading and custody service providers, with a draft bill expected to be submitted to the Legislative Council next year [3]

Core Insights - The People's Bank of China aims to maintain the RMB exchange rate at a stable and reasonable level, emphasizing a managed floating exchange rate system and market supply-demand principles [1] - The U.S. private sector has seen an average reduction of 11,250 jobs every two weeks, indicating a slowdown in labor market momentum [2] - The unemployment rate in the UK has risen to 5%, the highest level since February 2021, suggesting ongoing pressure in the labor market [2] Market Developments - The Hong Kong government successfully priced approximately HKD 10 billion worth of tokenized green bonds, marking the third batch of such bonds and establishing a technological foundation for future digital currency systems [1] - The U.S. Senate has passed a continuing resolution to avoid a government shutdown, with the House set to vote on the temporary funding bill [1] - President Trump warned that if the Supreme Court invalidates his emergency powers to impose tariffs, it could lead to an economic and national security disaster [1] Economic Indicators - The average weekly layoffs in the U.S. have increased to 11,250, reflecting a significant slowdown compared to earlier in the month [2] - A survey by the University of Michigan indicates that 71% of respondents expect the U.S. unemployment rate to rise in the next year, the highest percentage since 1980 [2] - The NFIB's small business optimism index fell by 0.6 points to 98.2, indicating decreased confidence among small business owners regarding future business conditions [2] - The UK's unemployment rate has increased to 5.0%, surpassing market expectations and highlighting ongoing labor market challenges [2] Global Market Dynamics - The Dow Jones Industrial Average rose by 1.18% to close at 47,927.96, reaching a new closing high, while the S&P 500 increased by 0.21% to 6,846.61 [3] - COMEX gold futures rose by 0.27% to $4,133.20 per ounce, and silver futures increased by 1.52% to $51.08 per ounce [4] - U.S. oil prices saw an increase, with the main contract rising by 1.51% to $61.04 per barrel, and Brent crude up by 1.7% to $65.15 per barrel [5]

Group 1 - The core viewpoint is that the tokenization of real-world assets (RWA) such as bonds and other financial instruments presents new opportunities for Hong Kong [1] - The Hong Kong government has issued tokenized green bonds over the past two years and is currently preparing the third batch of bonds [1] - The Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority have jointly announced a "Fixed Income and Money Market Development Roadmap" to solidify Hong Kong's position as a major fixed income and currency center [1] Group 2 - The upcoming policy address includes over 5% of content related to Hong Kong's future as a leading international financial center, indicating proactive measures by the government [1] - The government aims to enhance Hong Kong's international ranking and competitiveness, ensuring it does not stagnate [1] - There is a commitment to continue efforts to make Hong Kong a more comprehensive international financial center [1]

Core Viewpoint - Hong Kong is positioning itself as a global center for fixed income and currency markets through the release of the "Roadmap for the Development of Fixed Income and Currency Markets," which outlines key measures to enhance market quality and international competitiveness [1][2]. Group 1: Key Measures of the Roadmap - The roadmap focuses on four pillars: promoting primary market issuance, enhancing secondary market liquidity, expanding offshore RMB business, and building next-generation market infrastructure [1][2]. - It includes ten specific initiatives aimed at boosting demand, liquidity, and innovation in the fixed income market [1][2]. Group 2: Market Performance and Growth - Over the past 15 years, Hong Kong's bond issuance has grown at an average annual rate of 16%, with international bond issuance exceeding $130 billion last year [2][3]. - Hong Kong has ranked first in Asia for nine out of the last ten years in international bond issuance, highlighting its leading position in the Asian fixed income market [2][3]. Group 3: Enhancing Market Liquidity - The Hong Kong Securities and Futures Commission is exploring the feasibility of an electronic bond trading platform to improve market efficiency, transparency, and resilience [3]. - Measures to enhance secondary market liquidity are expected to attract more international investors to the Hong Kong bond market [3]. Group 4: Financial Innovation and Technology - The roadmap emphasizes financial innovation, including the introduction of tokenized bonds and the integration of technology across various platforms and asset classes [4][5]. - The Hong Kong Monetary Authority and the Hong Kong Stock Exchange are exploring the establishment of a central asset management and asset tokenization platform to enhance global competitiveness [5]. Group 5: Offshore RMB Business - Hong Kong remains the largest offshore RMB center, handling over 70% of global RMB transactions, and is a key hub for dim sum bond issuance [5][6]. - As of the end of August, the issuance of dim sum bonds reached 475 billion RMB, with expectations to exceed last year's record of 700 billion RMB [6].

Group 1 - Tokenization is a global fintech trend that is significantly changing the operation of financial markets, with Hong Kong establishing a leading position in this field [1] - The global asset management scale of tokenized funds has surpassed $2 billion and is expected to reach $600 billion by 2030, representing about 1% of the global mutual fund and ETF market [1] - The Hong Kong government has implemented a clear regulatory framework for stablecoin issuers with the stablecoin bill effective from August 1, 2023, and is currently conducting public consultations for digital asset service providers [1] Group 2 - In February 2023, Hong Kong issued the world's first tokenized green bond worth HKD 800 million, utilizing blockchain for payment settlement, reinforcing its leadership in green finance and tokenization [2] - The first retail tokenized money market fund in the Asia-Pacific region was launched, lowering investment barriers and facilitating investor participation in digital asset management [2] - The government plans to regularly issue tokenized government bonds, provide stamp duty exemptions for tokenized ETFs, and explore tokenization applications for various assets like precious metals and renewable energy [2]

Core Viewpoint - The Hong Kong government is actively working to expand new economic growth points while consolidating traditional industries, aiming to enhance Hong Kong's competitiveness and international influence as a "super connector" and "super value creator" [1][2]. Group 1: International Cooperation and Market Expansion - The government emphasizes the importance of deepening international cooperation, leveraging Hong Kong's unique position to connect mainland China with global markets, and expanding into emerging markets in the Global South [1][3]. - Efforts include strengthening regional cooperation with ASEAN, the Middle East, and countries along the Belt and Road Initiative, with specific agreements already signed or in negotiation with Bahrain, Qatar, and others [2][3]. Group 2: High-Value Supply Chain Development - A high-value supply chain service mechanism has been established to attract mainland enterprises to set up international or regional headquarters in Hong Kong, facilitating their global supply chain management [3][4]. Group 3: Industry-Specific Initiatives - The government is focusing on various industries, including: - **Innovation and Technology**: Promoting sectors like health tech, AI, and advanced manufacturing through targeted measures [4][5]. - **Space Economy**: Supporting research and development in space-related technologies and simplifying licensing for low Earth orbit satellite operations [4][5]. - **Low-Altitude Economy**: Developing a smart low-altitude economic ecosystem and expanding regulations for drone technology [5][6]. - **Halal Industry**: Enhancing Hong Kong's competitiveness in the halal market through legislative changes and promotional activities [6][7]. - **Professional Certification Services**: Expanding certification services into new fields such as green finance and ESG [6][7]. - **Financial Innovation**: Implementing a licensing system for digital asset trading platforms and stablecoins to foster sustainable growth in the digital asset sector [6][7]. - **Green Industry**: Supporting local green technology development and promoting Hong Kong as a center for sustainable finance [7][8]. - **Cultural and Creative Industries**: Developing a creative ecosystem and supporting industry-specific projects to enhance Hong Kong's status as a creative hub [7][8]. - **Sports Industry**: Noting a steady growth in the sports sector, with a reported increase in value added from sports activities [8][9]. Conclusion - The government is committed to collaborating across various policy areas to create a conducive environment for economic development, welcoming suggestions from legislators to enhance these initiatives [9].

Group 1 - The Hong Kong government is expanding the rapid licensing process for digital asset trading platforms to all new applicants, aiming to facilitate diverse operators in the market [1][2] - As of early July 2025, the Securities and Futures Commission (SFC) has issued licenses to 11 digital asset trading platforms and is processing nine additional applications [1] - The SFC is continuously reviewing and optimizing the licensing process to help applicants better understand regulatory expectations and reduce evaluation time [1] Group 2 - Starting January 2025, the rapid licensing process will require digital asset trading platform applicants to establish internal policies and undergo external evaluations, with the SFC overseeing the process [2] - Regulatory sandboxes are being established by various financial authorities to encourage fintech innovation, allowing for the testing of tokenization and blockchain applications in a controlled environment [2] - The government has issued tokenized green bonds in 2023 and 2024, showcasing the benefits of tokenization, with plans to normalize such issuances in the 2025-26 budget [2] Group 3 - The SFC has recognized the first tokenized investment product available for retail investors in Hong Kong, allowing partial ownership of physical gold [3] - In the first quarter of 2025, the SFC approved the first three tokenized money market funds for retail investors in the Asia-Pacific region, with total managed assets exceeding 700 million HKD by the end of March 2025 [3] - The Hong Kong Monetary Authority (HKMA) is actively promoting innovative applications, including the tokenization of traditional financial products and real-world assets, and is exploring the establishment of a unified technological infrastructure for interbank tokenized deposits [3]

Core Viewpoint - Hong Kong is actively promoting the development of digital assets, establishing a regulatory framework that balances risk management and investor protection, aiming to position itself as a leading digital asset center in Asia [1][2][7] Regulatory Framework - The Hong Kong government has implemented a licensing system for stablecoin issuers, which will take effect next month, enhancing the regulatory environment for digital assets [1][2] - A comprehensive regulatory framework for digital asset service providers is being developed, covering trading platforms, stablecoin issuers, and custodians [3][4] Tokenization and Product Expansion - The government has issued tokenized green bonds and plans to regularize the issuance of tokenized government bonds, providing incentives for the tokenization of real-world assets [4] - The framework aims to expand the variety of tokenized products, including potential exemptions from stamp duty for tokenized ETFs [4] Use Cases and Collaboration - The stablecoin licensing system is expected to facilitate practical applications and address challenges faced by the real economy [5] - Hong Kong is leading discussions on the use of stablecoins as a cost-effective alternative in financial markets, with a focus on enhancing their stability and reliability [5] AI Integration - Hong Kong's financial institutions have the highest usage rate of generative AI (38%) among global markets, indicating a strong trend towards AI integration in financial services [6] - The "LEAP" framework includes a focus on talent and partnership development to foster AI expertise and collaboration between industry and academia [6][7] Support for Startups - The Digital Port has launched a pilot funding scheme for blockchain and digital asset startups, providing financial support to encourage innovative solutions that integrate with the real economy [7]

Core Viewpoint - The Hong Kong government aims to establish the region as a global innovation center for digital assets through the release of the "Hong Kong Digital Asset Development Policy Declaration 2.0," which emphasizes a comprehensive regulatory framework and the expansion of tokenized products [1][13]. Group 1: Regulatory Framework - The new policy declaration introduces a "LEAP" framework focusing on legal and regulatory streamlining, expanding tokenized product categories, advancing use cases and cross-sector collaboration, and talent and partnership development [1]. - The Hong Kong Securities and Futures Commission (SFC) will oversee the licensing of digital asset trading and custody services, with a comprehensive review of existing laws to facilitate the tokenization of real-world assets [2][5]. - The regulatory framework aims to enhance market credibility, support effective risk management, and provide liquidity, thereby fostering a balanced ecosystem for market innovation and investor protection [6][12]. Group 2: Tokenization and Product Expansion - The government has issued tokenized green bonds totaling approximately HKD 6.8 billion, showcasing the benefits of tokenization, and plans to regularize the issuance of tokenized government bonds [10]. - Tax exemptions for tokenized ETFs will be clarified, encouraging market participants to explore the advantages of tokenizing ETFs, including money market ETFs [10]. - The government will promote broader asset and financial instrument tokenization across various sectors, including precious metals and renewable energy [10]. Group 3: Application Scenarios and Talent Development - A licensing mechanism for stablecoin issuers will be implemented on August 1, aimed at fostering practical application scenarios [11]. - The government will enhance collaboration among regulatory bodies, law enforcement, and technology providers to develop digital asset infrastructure [11]. - Initiatives will be taken to cultivate talent in the digital asset sector through partnerships with industry and academia, positioning Hong Kong as a center for knowledge sharing and international cooperation [11].