The Hong Kong Securities Regulatory Commission (SFC) has published its annual report for 2023-24, highlighting the significant growth of the financial sector and the commission's efforts to strengthen regulatory frameworks. As of March 3, 2024, the total number of licensed and registered institutions and individuals reached 47,851, indicating a substantial expansion of the financial industry.

The report reveals that 44,493 individuals and 3,246 institutions have obtained licenses, while 112 institutions have registered with the SFC. Notably, 2,140 licenses were granted for Type 9 (asset management) regulated activities, demonstrating the growing importance of asset management in the financial sector. Furthermore, 23 applications were submitted for virtual asset trading platforms under the Anti-Money Laundering Ordinance, reflecting the increasing interest in virtual assets.

The SFC has taken proactive measures to enhance regulatory frameworks, issuing licenses to two virtual asset trading platforms under the Securities and Futures Ordinance. Additionally, 234 on-site inspections were conducted on licensed institutions and related entities to ensure compliance with regulatory requirements. The establishment of the first tokenized private open-ended fund company in December 2023 and the approval of the first tokenized retail gold product in March 2024 mark significant milestones in the development of Hong Kong's financial sector.

The SFC's efforts to strengthen regulatory frameworks and promote innovation have contributed to the growth and development of Hong Kong's financial sector. The commission's commitment to combating money laundering and terrorist financing has also been demonstrated through the addition of a new chapter to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. This chapter provides guidance to the industry on managing risks associated with virtual assets.

The SFC's annual report highlights the significant progress made in enhancing regulatory frameworks and promoting innovation in Hong Kong's financial sector. The commission's efforts have contributed to the growth and development of the sector, positioning Hong Kong as a leading financial hub.