The Hong Kong Special Administrative Region (HKSAR) Government welcomed the measures announced (Apr 19) by the China Securities Regulatory Commission to further expand mutual access between the capital markets of the Mainland and Hong Kong. The measures include expanding the eligible product scope of equity exchange-traded funds under Stock Connect; including real estate investment trusts under Stock Connect; supporting the inclusion of the renminbi stock trading counter under the Southbound trading of Stock Connect; enhancing the arrangements for mutual recognition of funds; and encouraging leading enterprises of industries in the Mainland to list in Hong Kong.

Hong Kong is preparing to launch Asia’s first spot exchange-traded funds (ETFs) for Bitcoin and Ether on Apr 30. This move places Hong Kong at the forefront of Asia’s financial innovation, closely following the United States, which introduced similar products earlier in January 2024. These ETFs will debut on the Hong Kong Stock Exchange (HKEX) and are expected to create a new avenue for regulated crypto investments in the region.

The HKSAR Government and the Securities and Futures Commission (SFC) announced (Apr 26) details of the extension of the Grant Scheme for Open-ended Fund Companies (OFCs) and Real Estate Investment Trusts (REITs) to further attract these companies to set up in Hong Kong for three years to 2027. The scheme was launched in 2021 to provide funding support for OFCs set up in or re-domiciled to Hong Kong and REITs listed in Hong Kong to pay for eligible expenses charged by Hong Kong-based professional service providers. Since its introduction, the number of OFCs registered in Hong Kong has increased substantially from 14 in May 2021 to 302 in Mar 2024. Details of the extended Grant Scheme, which will be open for applications from May 10, can be found on the SFC’s website.

Hong Kong Exchanges and Clearing (HKEX) appointed (Apr 24) Carlson Tong as Chairman of the Board. He succeeded Laura Cha, who retired from the Board after a six-year term. Mr Tong has served as chairman of the Hong Kong Securities and Futures Commission from 2012 to 2018 and Chairman of the University Grants Committee from 2016 to 2022. He was also the Chairman of KPMG in China and Hong Kong from 2007 to 2011.

Hong Kong is pursuing a number of initiatives to promote the development of the city into a regional intellectual property (IP) trading center by building its own patent regime, said Financial Secretary Paul Chan at a reception (Apr 26) hosted by the Intellectual Property Department to celebrate World IP Day. These include grooming a talent pool of patent examiners equipped with technological and professional knowledge, planning for regulatory arrangements on local patent agent services, setting up a World Intellectual Property Organization Technology & Innovation Support Centre, implementing the “patent box” tax incentive to encourage commercialization of research and development outcomes. Secretary for Commerce & Economic Development Algernon Yau also attended the reception with about 150 guests.

Chief Executive John Lee hosted a welcome dinner (Apr 23) for the Asia-Pacific Economic Cooperation Business Advisory Council (ABAC) delegates attending the second 2024 ABAC Meeting (Apr 22 – 25) in Hong Kong. Speaking at the dinner, Mr Lee highlighted Hong Kong’s commitment to the Asia-Pacific Economic Cooperation (APEC). “We firmly believe in regional economic integration. We believe that co-operation, at every level, is essential if we are to overcome our shared global challenges,” he said, adding that APEC economies are incubators of ideas, promoting inclusive, innovative and sustainable growth for the Asia-Pacific region. Addressing the opening ceremony (Apr 23), Financial Secretary Paul Chan spoke about the areas on which Hong Kong could further work together with ABAC, including to promote international free trade and overcome roadblocks to supply chain and logistics network, to advance regional green transition and transformation, and to drive the growth of the digital economy. More than 200 ABAC members and staffers from APEC’s 21 member economies attended the meeting.

The Hong Kong delegation to the 49th International Exhibition of Inventions of Geneva (Apr 17 – 21) won a record high number of more than 350 prizes, including six Special Awards, 28 Gold Medals with Congratulations of the Jury and 114 Gold Medals. Congratulating the delegation, Secretary for Innovation, Technology & Industry Prof Sun Dong said the record-breaking haul of awards is greatly encouraging. It reflected the international recognition of Hong Kong’s research and scientific achievements, but also exemplified the city’s strength in innovation and technology. Hong Kong’s delegation was its largest ever, comprising close to 700 representatives from 40 organizations including universities, research and development centers, research laboratories, technology companies, government departments, and primary and secondary schools.

The Hong Kong-Shenzhen Innovation & Technology Park signed (Apr 18) memoranda of understandings (MOUs) with some 60 partners from nine economies, marking a significant milestone of the park entering the operational phase. About a quarter of these companies are from overseas, and 24 companies are new to set foot or expand business in Hong Kong. Chief Executive John Lee said Hong Kong’s prowess not only cultivates a versatile workforce, but also attracts talent from around the world. That, in turn, brings a rising tide of strategic companies, entrepreneurs and start-ups turning to Hong Kong for their future. Secretary for Innovation, Technology & Industry Prof Sun Dong said the diverse portfolio of partnership enterprises highlights Hong Kong’s unique advantage as an international city, casting a big vote of confidence in the development of the park as well as the I&T industry in Hong Kong.