Get financial news and market updates on East Fortune, choose East Fortune Securities for one-stop account opening and trading. Multiple significant announcements have come from Hong Kong. Firstly, the Hong Kong Exchanges and Clearing Limited (HKEX) has made a major move in the virtual currency market. Today, HKEX announced that it will launch the Hong Kong Virtual Asset Index Series on November 15th, providing a reliable benchmark price for the rapidly emerging asset class of virtual assets, supporting Hong Kong’s development into a leading digital asset hub in Asia.
More details about the design and calculation methods of the index series will be announced in due course. Secondly, the Hong Kong Special Administrative Region Government has issued a policy manifesto on the application of AI in the financial market. The content includes Hong Kong adopting a dual-track approach to promote the adoption and development of artificial intelligence in the financial services industry, while also addressing potential challenges such as cybersecurity, data privacy, and intellectual property protection. Additionally, there has been the latest progress in cross-border payments between Hong Kong and Mainland China. The Chief Executive of the Hong Kong Monetary Authority, Eddie Yue, stated today (28th) that a trial for cross-border payments with Mainland China and ‘Fast Payment System’ (FPS) is expected to be launched by mid-next year. HKEX announced today that it will launch the Hong Kong Virtual Asset Index Series (Index Series) on November 15th, 2024, providing a reliable benchmark price for the rapidly emerging asset class of virtual assets, supporting Hong Kong’s development into a leading digital asset hub in Asia. The index series will provide a transparent and reliable benchmark for the pricing of Bitcoin and Ethereum in the Asian time zone, aiming to provide a unified reference price for virtual assets and address price discrepancies between global exchanges. Calvin Choi, the Chief Executive of HKEX Group, said: ‘We are delighted to launch the Hong Kong Virtual Asset Index Series to meet the regional demand for this rapidly emerging asset class. By providing a transparent and reliable real-time benchmark, we hope to help investors make informed investment decisions, thereby supporting the healthy development of the virtual asset ecosystem and consolidating Hong Kong’s position as an international financial center.’ The launch of the index series is part of HKEX’s commitment to explore emerging fields, supporting the development of Hong Kong’s fintech while providing investors with important benchmark tools and solutions in the ever-changing market environment. It is reported that the index series will include reference indices and reference exchange rates for Bitcoin and Ethereum. The reference index is based on the 24-hour trading volume-weighted benchmark spot price of Bitcoin or Ethereum and is calculated based on the aggregated market prices of several major virtual asset exchanges, priced in US dollars in real-time. The reference exchange rate is designed for the settlement of financial products and is calculated at 4:00 PM Hong Kong time.This index series will be the first in Hong Kong to comply with the European Union Benchmarks Regulation (BMR) for virtual assets, managed and calculated jointly by a benchmark management institution registered in the UK and CCData, a provider of virtual asset data and indices. In 2022, the Hong Kong Special Administrative Region Government released a policy statement on the development of virtual assets, aiming to cultivate a vibrant virtual asset industry and ecosystem in Hong Kong.
The launch of the Hong Kong Exchange’s virtual asset index series will help the public to better understand virtual asset investment trends by providing real-time data and daily reference prices in the Asian time zone. More details about the design and calculation methods of the index series will be announced in due course. Today, the Hong Kong Special Administrative Region Government issued a policy manifesto on the responsible application of Artificial Intelligence (AI) in the financial market. The content includes the government’s dual-track approach to promoting the adoption and development of AI in the financial services industry while addressing potential challenges such as cybersecurity, data privacy, and intellectual property protection; financial institutions should establish AI governance strategies and adopt a risk-based approach in the procurement, use, and management of AI systems, with human supervision being crucial for mitigating potential risks. Additionally, the manifesto points out that the Hong Kong University of Science and Technology will open up AI models and computational resources developed for use by the Hong Kong financial services industry, and provide advisory and training services for financial institutions in deploying internal systems or developing applications and network interfaces; the Hong Kong financial regulatory authorities will also continue to review and update existing AI regulations and guidelines. Hong Kong’s Financial Secretary, Paul Chan, stated that as an international financial center, Hong Kong maintains an open and cautious attitude towards the application of AI in the financial market. The policy manifesto clearly sets out the policy stance and direction of the Special Administrative Region Government, promoting the responsible application of AI in the financial market. As AI technology continues to evolve, the government will closely monitor market developments and draw on domestic and international experiences, leveraging Hong Kong’s unique advantages of converging mainland and international data and information, to promote the application of AI in the financial services industry and accelerate the cultivation of new productive forces in a targeted manner. Henry Ho, the Secretary for Financial Services and the Treasury, said that the government will work together with financial regulatory authorities and industry stakeholders to create a healthy and sustainable market environment, assist financial institutions in seizing opportunities, and adopt AI responsibly, promoting the high-quality development of Hong Kong as an international financial center. There are already many AI models and infrastructure available for financial institutions, accounting firms, and solution providers to use, and the government will encourage the financial services industry to actively utilize these market resources.The latest advancements in cross-border payments have been reported by the Greater Bay Area Voice. Norman Chan, Chief Executive of the Hong Kong Monetary Authority (HKMA), stated today (28th) that a pilot program for mainland China’s cross-border payments and Faster Payment System (FPS) is expected to be launched by mid-next year. Chan highlighted that Hong Kong’s FPS will be connected to the mainland’s Internet-based Payment and Settlement System (IBPS), enabling 24×7 interbank payments, instant small payment transfers, and remittances using phone numbers. Discussions are currently underway with the People’s Bank of China regarding exchange rate calculations, potential limits, and the geographical scope involved.
The Chief Executive’s 2024 Policy Address mentioned that the HKMA and the People’s Bank of China are promoting the interconnection of the two regions’ fast payment systems, namely the FPS in Hong Kong and the IBPS in mainland China, to facilitate real-time, small-value cross-border payments for residents of both areas. On another note, Chan also mentioned that the Ensemble project has over ten use cases under trial, with several already completed and results to be announced soon. The project will also involve cross-border testing with the central banks of Thailand and Brazil and will explore more practical use cases, including cross-border trade financing in tokenized form. According to the information, the Ensemble project aims to explore the construction of innovative financial market infrastructure based on blockchain platforms, promoting seamless interbank settlements with tokenized currencies through wholesale Central Bank Digital Currencies (wCBDC). Through sandbox testing, the HKMA will verify the technical interoperability between tokenized assets, tokenized deposits, and wCBDC, allowing industry participants to conduct end-to-end tests on tokenized asset transactions in real business scenarios. Previously, the HKMA stated that after fully considering industry intentions, market trends, and the potential impact of innovation and development, the first phase of the Ensemble project’s sandbox will cover the tokenization of traditional financial assets and real-world assets (RWA), focusing on four major themes: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain financing. For those interested in stock trading, opening an account is the first step! Choose Orient Wealth Securities, where market trends and trading can be managed through a single app.