Hong Kong-domiciled funds’ assets jump 36pc in Q3, SFC says

Assets under management at Hong Kong-domiciled funds surged about 36 percent year-on-year to HK$2.27 trillion in the third quarter, the city's Securities and Futures Commission said in its latest quarterly report, highlighting the city’s progress in deepening domestic and international market links and promoting financial innovation.

The SFC said the number of Hong Kong-domiciled funds rose 7.8 percent year-on-year to 1,022 as of September, with net fund inflows of about HK$46.9 billion recorded in the third quarter.

To enhance cross-border cooperation, the SFC signed six memoranda of understanding this year, including three during the quarter.

Hong Kong capital markets delivered another quarter of steady and diversified growth despite global headwinds and volatility, said SFC chief executive Julia Leung Fung-yee.

"To solidify Hong Kong’s status as an international financial centre, it is crucial that we continue to bolster the future readiness and resilience of our markets, underpinned by fit-for-purpose regulatory frameworks and robust investor protection," she said.

On the new product front, SFC-authorised virtual asset spot exchange-traded funds saw total market capitalisation rise 33 percent from last year to HK$5.47 billion as of end-November, with their total number increasing to 11. Tokenised retail money market funds authorised by the SFC recorded total assets under management of HK$5.48 billion as of the end of November, soaring 557 percent since the launch of the first such MMF this year, with the total number rising to eight.

To support Hong Kong’s further growth as a premier offshore yuan hub, the SFC and Hong Kong Monetary Authority jointly issued a roadmap in September to position Hong Kong as a global fixed income and currency hub, with a detailed workplan now being drawn up.