Hong Kong’s Securities and Futures Commission has approved secondary trading of tokenised public funds on a licensed virtual-asset trading platform, with two authorised money-market funds becoming available around the clock on October 26.
The approval covers the Hong Kong dollar and US dollar versions of the ChinaAMC Digital Money Market Fund. Both products were already authorised for public offering; the new step concerns trading between investors after issuance rather than primary subscription and redemption alone.
The arrangement operates under the regulatory framework the SFC introduced in April. That framework requires controls for the trading channel, fair pricing, liquidity provision, disclosure, client onboarding and regulatory notification. Product providers remain responsible for the accuracy of ownership records and compliance with the rules governing authorised funds, even where technology or other functions are outsourced.
Twenty-four-hour secondary trading does not mean the underlying portfolio trades continuously or that the token is free from ordinary fund risk. Prices in the secondary market may diverge from the next calculated net asset value, while subscriptions and redemptions can still be subject to normal dealing windows and liquidity-management tools.
The regulator said it would monitor activity and consider expanding the range of eligible products as experience develops. The approval is therefore an operational first under an existing framework, not a general permission for every tokenised fund or every virtual-asset platform in Hong Kong.
