According to news on September 27, the official website of the Hong Kong Securities Regulatory Commission released the content of the keynote speech delivered by Cai Fengyi, a member of the Securities Regulatory Commission and executive director of the Investment Products Department, at the 2023 Bloomberg Buyer Forum. Cai Fengyi pointed out that in terms of tokenization of retail investment products, the Hong Kong Securities and Futures Commission has recently received suggestions to tokenize products authorized by the Securities and Futures Commission (such as public funds). Tokenization refers to the creation of blockchain-based tokens to represent or Designed to represent a fraction of ownership in an investment product.
Cai Fengyi said that the China Securities Regulatory Commission is currently formulating more detailed guidance on the tokenization of investment products authorized by the China Securities Regulatory Commission and will release it in the short term. Our current thinking is that, given that the development of Hong Kong’s VAT system is in its infancy, in principle it would be more appropriate at this stage to first allow tokenized primary trading of Securities and Futures Commission (SFC)-authorized products, before virtual Secondary trading on the Asset Trading Platform (VATP) requires more caution and careful consideration.
