Hong Kong's securities regulator expects to swing from a projected deficit to a surplus in the current financial year, helped by a surge in stock market turnover that boosted transaction levy income, its chairman said on Monday.
Securities and Futures Commission Chairman Kelvin Wong Tin-yau said an earlier forecast deficit of about HK$185 million has been revised to a surplus of around HK$1.6 billion, citing a sharp rise in average daily trading value and solid investment returns.
He added that the regulator expects another surplus of HK$1.49 billion in the 2026–27 financial year, with reserves projected to rise to HK$10.95 billion by the end of March next year.
Speaking at a Legislative Council financial affairs panel meeting, Wong said the SFC has budgeted for an average pay rise of about 3 percent in the next financial year, plus an additional 1.5 percent linked to individual performance, noting that salary growth across Hong Kong's financial services sector is close to 4 percent.
The regulator currently has 985 staff, with 52 vacancies, representing about 5 percent of its establishment. Staff attrition has exceeded 6 percent, with mid-level employees particularly affected by strong market demand, Wong said.
Lawmaker Ronick Chan Chun-ying questioned the SFC's provision of HK$5.93 million to upgrade 12 positions, equivalent to an average pay increase of about HK$41,000 per post, raising concerns about a top-heavy structure.
Wong said retaining key talent was critical to maintaining effective market supervision while also developing the market, adding that pay increases of around 4.5 percent for top performers were a basic necessity.
Chief executive Julia Leung Fung-yee said the role upgrades were tied to enhanced functions, while some entry-level tasks would increasingly be replaced or supported by technologies such as artificial intelligence.
