On September 27, the official website of the Hong Kong Securities and Futures Commission released the keynote speech of Cai Fengyi, executive director of the Securities and Futures Commission's member and investment product department, at the 2023 Bloomberg Buyer Forum. Cai Fengyi pointed out that in terms of the 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 (SFC), such as public funds. Tokenization refers to the creation of blockchain-based tokens that represent or are intended to represent a small part of the ownership of investment products. Cai Fengyi said that the Securities and Futures Commission is currently developing more detailed guidance on the tokenization of investment products authorized by the Securities and Futures Commission and will release it in the short term. Our current thinking is that, considering that the development of Hong Kong's value-added tax system is in its infancy, in principle, it is more appropriate to first allow tokenized primary trading of products authorized by the Securities and Futures Commission (SFC) at this stage, and secondary trading on the virtual asset trading platform (VATP) requires more cautious and careful consideration.
