Hong Kong strengthens its claim as an international financial center with expanded regulations

Hong Kong Drives Comprehensive Modernization of Its Financial Infrastructure. Coordinated efforts by the Financial Services and Treasury Bureau and the Securities and Futures Commission are currently creating a new regulatory framework that addresses two core areas of the global financial markets: digital assets and traditional commodity trading.

Digital Assets: From Regulation to Practical Implementation

The regulatory initiative is already showing initial successes. The Hong Kong Stablecoin Regulation, which came into effect in 2025, is currently being operationalized by the Hong Kong Monetary Authority. At the same time, the government is working on a comprehensive bill covering advisory and management services for virtual assets, which is expected to be passed by the Legislative Council within the same year.

This two-phase strategy—initially regulating stablecoins, then structuring the entire ecosystem—signals Hong Kong’s long-term commitment to the digital financial sector. Licensing procedures under the Hong Kong Monetary Authority demonstrate that regulation is no longer theoretical but results in concrete business licenses.

Hong Kong as an International Hub for Gold Trading

Even more ambitious is Hong Kong’s plan for the gold market. The government aims to increase gold reserves by over 2,000 tons within three years. This is part of a strategic initiative to position Hong Kong as a regional gold reserve center.

To realize this vision, a governance committee for the Hong Kong Gold Central Clearing System has already been established—a fully government-controlled system. Testing phases for the clearing mechanism were scheduled for 2025, indicating an imminent operational launch.

The expansion of gold reserves offers several advantages for Hong Kong: it solidifies its position as a hub between China and international markets, diversifies the financial infrastructure, and creates new business opportunities for local financial institutions.

Market Optimization as a Competitive Advantage

Alongside these structural projects, the Financial Services and Treasury Bureau is examining tax relief measures. A particularly notable initiative involves shortening the equity transaction cycle from T+2 to T+1. This acceleration would make Hong Kong’s stock market more competitive compared to other global exchanges and reduce settlement risks.

Hong Kong is leveraging a proven playbook: through regulatory clarity, infrastructure upgrades, and tax incentives, it aims to attract institutional and private capital flows. The measures demonstrate that Hong Kong intends to maintain its position not through deregulation but through smart regulation and market modernization.