Hong Kong Proposes Regulatory Reforms to Strengthen Fund Hub Position

In a bid to reinforce its status as an international financial hub, Hong Kong’s securities regulator has unveiled a series of comprehensive amendments designed to expand retail investors’ reach into private credit markets and empower fund managers in leveraging derivatives. The proposed changes, unveiled by the Securities and Futures Commission (SFC), mark a significant effort to realign the city’s fund ecosystem with global norms. The three-month public consultation launched by the SFC focuses on modifications to the Code on Unit Trusts and Mutual Funds, governing the structure and operations of authorized funds. Christina Choi Fung-yee, the SFC’s executive director of…