The Hong Kong Securities and Futures Commission (SFC) has published its annual report for 2023-24, outlining its strategic priorities for the next three years. The commission has identified four key areas of focus, aimed at driving market transformation, enhancing industry efficiency, and ensuring the stability and integrity of Hong Kong's financial markets.

The SFC is committed to harnessing the power of technology and ESG factors to lead market transformation. This includes promoting the adoption of innovative technologies, such as tokenization, to enhance industry efficiency and improve investor experience. Additionally, the commission plans to continue refining its regulatory framework for virtual assets, providing clear guidance and oversight to ensure a safe and stable trading environment.

The SFC also recognizes the potential benefits of generative artificial intelligence large language models, and plans to provide guidance on their use in the financial sector. This move is aimed at promoting innovation and growth, while ensuring that these technologies are harnessed responsibly and in the best interests of investors.

By outlining its strategic priorities, the SFC is demonstrating its commitment to adapting to the rapidly evolving financial landscape. The commission is taking a proactive approach to addressing emerging risks and opportunities, and is positioning Hong Kong's financial markets for continued growth and success.

Through these initiatives, the SFC is reaffirming its dedication to maintaining the integrity and stability of Hong Kong's financial markets. By fostering a culture of innovation and responsible growth, the commission is helping to ensure that Hong Kong remains a leading global financial center.