Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the launch ceremony of the Platform and Nominee Services of the Hong Kong Exchanges and Clearing Limited (HKEX) Integrated Fund Platform today (October 28):

Bonnie (Chief Executive Officer of the HKEX, Ms Bonnie Chan), distinguished guests, ladies and gentlemen,

     Good afternoon. It is a great pleasure of mine to join you today at the launch ceremony of the Platform and Nominee Services of the Integrated Fund Platform. I would like to congratulate HKEX on this important milestone, and to thank the SFC (Securities and Futures Commission), the industry task force, and all the participating distributors, fund houses and transfer agents for their partnerships in bringing the platform to this stage.

     Hong Kong is the world's largest cross boundary wealth management centre, and our assets under management (AUM) reached a record high of $42.2 trillion as at the end of last year, with a year-on-year increase of 20 per cent. Net fund inflows almost tripled year-on-year to $2.1 trillion. More than half of these assets are sourced from investors outside the Chinese Mainland and Hong Kong. This very much underlines the city's appeal as Asia's premier asset and wealth management hub for international capital.

     A robust and efficient fund distribution infrastructure is fundamental to sustaining this position. The Integrated Fund Platform, first announced in the 2023 Policy Address, developed by HKEX with the support of the Government-FSTB (Financial Services and the Treasury Bureau) and the SFC, is a key piece of that infrastructure. The Fund Repository, launched in December 2024, has already enhanced transparency by providing streamlined access to information on more than 2 000 SFC-authorised funds. The Order Routing Service, introduced in July last year, has begun to connect distributors and transfer agents, and streamline the order placement process for subscriptions and redemptions. Today's launch of the Platform and Nominee Services completes the next critical step. By covering nominee services and related operational processes, the platform now supports a more end-to-end digitalised fund distribution workflow. This will help reduce operational friction, improve market efficiency, and lower barriers for fund managers to reach a broader distribution network through a more standardised channel.

     This development sits within a broader set of measures to sharpen Hong Kong's competitive edge in asset and wealth management. We are enhancing the preferential tax regimes for funds, single family offices and carried interest. A bill was introduced to the Legislative Council in June this year to expand the tax exemption to cover sizeable funds-of-one, and to include a wider range of qualifying investments such as loans and private credit, digital assets and precious metals. Subject to the passage of that bill, we target implementation from the year of assessment 2025/26.

     Regarding fund structures, the Open-ended Fund Company (OFC) and Limited Partnership Fund (LPF) regimes have continued to expand robustly, with more than 790 OFCs registered since July 2018 and more than 2 000 LPFs registered since August 2020. Meanwhile, the fund re-domiciliation mechanism has facilitated the re-domiciliation of more than 50 companies since May 2025, with more than 30 applications currently being processed, offering a clear pathway for overseas funds to relocate to Hong Kong. Connectivity with the Chinese Mainland also remains a core strength. Enhancements to the mutual recognition of funds arrangement, the future inclusion of real estate investment trusts under Stock Connect, and ongoing work on Wealth Management Connect all expand the channels through which capital and products can flow.

     We continue to promote the development of the REIT (real estate investment trust) market and to facilitate the listing of alternative asset funds in Hong Kong. On the REIT front, we have relaxed investment restrictions, broadened the investor base, introduced regulatory enhancements and provided financial incentives, including the waiver of stamp duty on the transfer of REIT units. We will introduce an amendment bill this year to enable the privatisation or restructuring of REITs, and target to introduce another amendment bill in the first half of next year to provide a stamp duty waiver for the transfer of non-residential properties into REITs seeking to list.

     Looking ahead, we will continue to work closely with HKEX, the SFC and the industry to ensure the platform delivers practical benefits to fund managers, distributors and, ultimately, investors. We encourage more market participants to join the platform and to explore how the new services can support the Hong Kong AUM growth. Hong Kong's open markets, rule of law, deep talent pool, and free flow of capital and information remain our enduring advantages. With the continued development of platforms such as the Integrated Fund Platform, and with the full suite of supporting policies, we are confident that Hong Kong will further consolidate our position as a world-leading cross-boundary wealth management centre. I very much look forward to the continued success of the Integrated Fund Platform and to working with all of you in the years ahead. Thank you.

Ends/Wednesday, October 28, 2026
Issued at HKT 17:18

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