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Hong Kong’s Securities and Futures Commission (SFC) announced on October 26, 2026, that it has approved secondary trading for two existing authorised tokenised money-market funds on a licensed virtual-asset platform. The specific products covered by this approval are ChinaAMC’s Hong Kong-dollar and US-dollar digital money-market funds, which will now be available for trading around the clock.
Secondary Market Mechanics
The approval allows buyers and sellers to exchange existing units of these funds without requiring a direct subscription or redemption with the fund for every transaction. This structure enables positions to be moved even when underlying money markets are closed, providing continuous access to the assets. However, the SFC noted that quoted secondary-market prices may diverge from the fund’s net asset value. Liquidity in this new environment depends on the presence of active buyers, sellers, and market makers, meaning that the speed of blockchain transfers does not eliminate standard market risks.
Settlement arrangements remain a critical component of this framework, determining how cash proceeds are transferred back into conventional accounts. The operational viability of the 24-hour order book relies on these settlement mechanisms functioning effectively alongside the trading platform.
Pilot Framework and Regulatory Scope
This approval operates within a pilot framework introduced by the SFC in April 2026. The framework covers the operation of the trading channel, fair pricing, liquidity provision, and required disclosures. The regulator emphasized that the approval applies only to specified products within this framework and does not constitute blanket permission for all tokenised investments to trade continuously.
The SFC stated it will monitor trading activity under this pilot and consider whether to expand the list of eligible products in the future. The decision reflects a step-by-step approach to building regulatory infrastructure in Hong Kong, tying new market activity to existing authorised funds and licensed trading platforms rather than treating all tokens as interchangeable assets.
Frequently Asked Questions
Which funds are approved for 24/7 trading?
The approval covers ChinaAMC’s Hong Kong-dollar and US-dollar digital money-market funds.
When was the pilot framework introduced?
The SFC introduced the pilot framework in April 2026.
