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Hong Kong · Regulation & crypto · Source: Securities and Futures Commission (HK)
Hong Kong's SFC approves 24/7 secondary trading of two tokenised money market funds
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Editor: Hedal Kolanyi / AI-assisted
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Summary: Hong Kong's Securities and Futures Commission (SFC) has approved secondary trading of two tokenised public funds on a licensed virtual asset trading platform, with trading available around the clock. The regulator described it as the first such approval in the world.
What happened
On 26 October 2026 the SFC announced that secondary trading of two existing SFC-authorised tokenised money market funds had started that day on an SFC-licensed virtual asset trading platform (VATP). The funds are the ChinaAMC HKD Digital Money Market Fund and the ChinaAMC USD Digital Money Market Fund.
"Secondary trading" means investors buy and sell existing fund units with each other, instead of only subscribing to or redeeming units with the fund manager. China Daily Hong Kong reported that the trading takes place on PantherTrade, a licensed platform wholly owned by Futu. Caixin reported that Hong Kong had 17 tokenised products available to retail investors as of October, with total assets under management of $1.3 billion.
Elisa Ng, the SFC's executive director of investment products, said the step adds "an important building block – 24/7 trading capability" to the city's tokenisation ecosystem.
Background
The SFC set out the rules for this kind of trading in a circular dated 20 April 2026. Among other things, the circular sets out:
- how units may be traded on licensed platforms through on-screen automatic matching;
- alerts when a trade price moves far from the fund's indicative net asset value (NAV), and reminders that investors can still subscribe or redeem at NAV;
- best efforts to have at least one market maker per product, with at least three months' notice before a market maker stops;
- risk disclosures, including that trading may be very thin and prices may differ widely from NAV, particularly outside normal Hong Kong market hours and at weekends.
The SFC's announcement also referred to its tokenisation work with the Hong Kong Monetary Authority under Project Ensemble, which includes tokenised deposits.
Why it matters for markets and crypto
Tokenisation means representing a traditional asset, here fund units, as digital tokens that can move on digital platforms. The approval tests whether such units can trade continuously on a regulated virtual asset platform under a framework that builds on the SFC's existing rules for exchange-traded funds and virtual asset trading platforms. The circular itself warns of liquidity and pricing risks, and China Daily reported that Futu's Steve Zeng said secondary market prices are market-driven and may deviate significantly from net asset value. This article describes a regulatory development only. It does not assess any fund, token or platform and is not an endorsement of tokenised products or crypto-assets. xorchain.io has no connection to the funds, the platform or the SFC's decision.
What to watch next
- The SFC said it may broaden the range of eligible products over time. It has not given a date.
Sources
- Securities and Futures Commission, "SFC approves first-ever secondary trading of tokenised public funds", 26 October 2026
- Securities and Futures Commission, "Circular on secondary trading of tokenised SFC-authorised investment products", 20 April 2026
- China Daily Hong Kong, "HK regulator okays first-ever secondary trading of tokenized public funds", 26 October 2026
- Caixin Global, "Hong Kong Opens Secondary Trading for Retail Tokenized Funds", 27 October 2026
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