Hong Kong SFC Chief: Digital Asset Rules, AI Finance on Agenda

Hong Kong will keep expanding its digital asset rules and push the use of artificial intelligence in financial services as it tries to hold its place as an international financial centre, the chairman of the Securities and Futures Commission said.

Speaking at the Caixin Summer Summit, SFC Chairman Tim Lui said the regulator would pursue "responsible innovation," balancing technology development with investor protection, market integrity, and financial stability.

Lui said Hong Kong was writing rules for digital asset trading, custody, advisory services, and asset management. "The principle is the same business, same risks, same rules," he said, according to a text of the speech published by the SFC.

The SFC and other Hong Kong regulators have expanded sandbox initiatives to let financial firms test generative AI applications in a controlled setting, Lui said. He warned that financial institutions must guard against risks including unreliable outputs, model bias, data privacy concerns, and cyber threats.

Beyond digital assets and AI, Lui said Hong Kong should broaden its capital markets by strengthening fixed income, currency, and offshore renminbi markets, while keeping its equity market competitive. He said regulatory certainty would matter as Hong Kong faces geopolitical uncertainty, market volatility, and rapid technology change.

The SFC would act as both a market guardian and a market facilitator, Lui said, adding that regulation should help create a predictable environment for innovation and capital formation.