Leung Fung-yee, the Chief Executive Officer of the Hong Kong Securities and Futures Commission (SFC), delivered a keynote during a panel session at the Hong Kong Association of Banks' Annual Distinguished Speakers Luncheon, highlighting artificial intelligence and the internationalisation of the renminbi as the twin engines propelling China's economic growth and the pivotal forces guiding Hong Kong's market towards its next phase of advancement.
In her remarks, Leung noted that the SFC is currently evaluating whether additional guidance is necessary to help institutions implement existing regulatory principles within applied AI scenarios. This initiative is not aimed at dictating technical design specifics, but rather at clarifying the regulatory outcomes the SFC expects: establishing clear accountability divisions, implementing effective human oversight, setting controlled access permissions and defining application boundaries, conducting rigorous pre-deployment testing followed by continuous monitoring, ensuring operational resilience, and enabling swift escalation and remediation when issues arise.
Addressing the broader theme of technological transformation, Leung emphasised that responsible innovation sits at the core of the SFC's regulatory philosophy. Hong Kong stands as one of the few global markets capable of simultaneously facilitating AI research and development, providing financing, enabling investor access to AI-driven opportunities, and maintaining robust oversight of the sector. The city is also reaping substantial benefits from China's formidable capabilities across the entire AI value chain.
For Hong Kong's evolution as an international financial centre, Leung identified three primary advantages from AI: improved investor outcomes, deeper capital formation, and greater value creation capabilities for intermediaries. Through AI applications, investors gain access to more effective tools for understanding information, sourcing quality investment advice, comparing alternatives, and making better-informed decisions.
Additionally, Leung observed that Hong Kong is experiencing significant opportunities to connect diverse enterprises within the AI value chain with international, mainland, and regional capital. Investors can also leverage Hong Kong to share in the growth dividends generated by strategic technology industries.
During the discussion, she also pointed out that as AI adoption expands across SFC-licensed institutions, the technology is enhancing intermediary efficiency, consistency, and customer service standards under proper governance, while simultaneously freeing up human resources to focus on higher-value strategic judgement and stakeholder engagement activities.
Consolidating Hong Kong's advantage as a leading offshore renminbi hub, Leung stated that building a deeper and broader renminbi ecosystem ranks among the SFC's foremost priorities in cementing Hong Kong's position as the world's premier offshore renminbi business centre. This undertaking carries particular significance in the current climate, given that China's competitive edge in green technology is further accelerating renminbi internationalisation, while global investors are increasingly diversifying into non-US dollar assets amid rising worldwide uncertainty.
Leung noted that both investors and corporations require a more comprehensive suite of renminbi instruments for financing, investment, hedging, and liquidity management purposes. Chinese government bonds and dim sum bonds currently dominate the renminbi product landscape, with the latter experiencing notable issuance growth since the start of 2026. Furthermore, Hong Kong's market is technically prepared to welcome renminbi trading counters into the Stock Connect scheme.
Leung asserted that efficient access to renminbi funding and deepening liquidity are paramount. Hong Kong is currently developing fixed income and currency trading platforms designed to facilitate connectivity between onshore and offshore renminbi markets, thereby enhancing trading efficiency. Additionally, the scope for using renminbi fixed income instruments as collateral in the offshore market will be expanded to include Hong Kong Futures Exchange Clearing Corporation Limited and Hong Kong Exchanges and Clearing Limited's Options Clearing House by the end of 2026.
Leung further stated that as offshore renminbi business continues to deepen, effective risk management tools are essential for sustaining investor confidence and promoting market participation. Offshore investors currently hold over RMB 3 trillion in onshore bonds, and the five-year Chinese government bond futures launched in Hong Kong in early August provide them with a practical instrument to hedge related position risks. The SFC also supports Hong Kong Exchanges and Clearing Limited in introducing additional renminbi foreign exchange futures and renminbi-denominated gold futures, while simultaneously exploring further optimisation of the Swap Connect programme, potentially including the addition of new reference rates.
In her concluding remarks, Leung reflected that we find ourselves at a pivotal historical moment where both AI and renminbi internationalisation present once-in-a-generation opportunities. She urged the market to seize these prospects with bold ambitions while adhering to sound governance principles, establishing robust safeguards, and maintaining focus on delivering tangible value to investors, clients, markets, and the broader economy.
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