Hong Kong Securities Regulatory Commission Leung Fung-yee: Shaping a new market growth curve with artificial intelligence and RMB internationalization is considering whether further guidance on AI applications is needed

The Zhitong Finance App learned that the Chief Executive of the Hong Kong Securities Regulatory Commission, Leung Fung-yee, emphasized during the panel discussion session at the Hong Kong Association of Banks's Annual Lecture and Luncheon that artificial intelligence (AI) and the internationalization of the RMB are the twin engines driving China's economic growth and are also important forces leading the Hong Kong market to the next stage of leap forward. Among them, it was mentioned that the Hong Kong Securities Regulatory Commission is considering whether it is necessary to provide further guidance to help institutions implement existing regulatory principles in proxy AI application scenarios. This is not to standardize technical design details, but rather to clarify the regulatory results that the Securities Regulatory Commission expects to achieve: clearly dividing responsibilities and implementing effective human supervision, establishing controlled access rights and stipulating the scope of application, conducting robust testing before deployment and continuous monitoring thereafter, ensuring operational resilience, and promptly reporting and taking remedial measures when problems occur.

On the subject of technological change, Leung Fung-yee pointed out that responsible innovation is the core supervisory policy of the Hong Kong Securities Regulatory Commission. Hong Kong is one of the few markets in the world that can balance AI R&D and financing, promote AI targeting investors, and regulate it. Hong Kong is also benefiting extensively from China's strong strength across the AI value chain. For Hong Kong's development as an international financial center, AI brings three major benefits: improving investor outcomes, deepening capital formation, and empowering intermediaries to create greater value. Through AI, investors can use more effective tools to better understand information, obtain high-quality investment advice, compare different options, and make more appropriate decisions.

Furthermore, Leung Fung-yee said that Hong Kong is facing huge opportunities to connect different enterprises in the AI value chain with international, mainland and regional capital. Investors can also use Hong Kong to share the dividends brought by the growth of the strategic technology industry. During the discussion, she also pointed out that with the increasing number of application scenarios of AI in institutions licensed by the Hong Kong Securities Regulatory Commission, AI is improving the efficiency, consistency and customer service level of intermediaries under proper management, while shifting human resources to higher-value strategic judgment and stakeholder communication work.

Consolidating Hong Kong's strengths as a leading offshore RMB hub

Regarding the internationalization of the RMB, Leung Fung-yee said that building a deeper and broader RMB ecosystem is one of the primary tasks of the Hong Kong Securities Regulatory Commission to consolidate Hong Kong as the world's leading offshore RMB business hub. The relevant work is particularly important in the current environment, as China's competitive advantage in the field of green technology is further driving the RMB internationalization process, and against the backdrop of growing global uncertainty, international investors are also speeding up diversification into non-US dollar assets.

Leung Fung-yee pointed out that both investors and enterprises need a more complete set of RMB instruments for financing, investment, hedging and liquidity management. Chinese treasury bonds and dim sum bonds are currently the main RMB products, and the circulation of the latter has increased significantly since 2026. Furthermore, the Hong Kong market is technically ready to welcome the inclusion of the RMB trading counter in Hong Kong Stock Connect.

Leung Fung-yee said that efficient access to RMB capital and deepening liquidity are essential. Hong Kong is developing fixed income and currency trading platforms to facilitate connectivity between onshore and offshore RMB markets and enhance transaction efficiency. Furthermore, the scope of using RMB fixed income instruments as collateral in the offshore market will be extended to Hong Kong Futures Clearing Limited and Hong Kong Stock Exchange Options Clearing Limited by the end of 2026.

Leung Fung-yee also said that as offshore RMB business continues to deepen, effective risk management tools are critical to maintaining investor confidence and promoting market participation. Currently, offshore investors hold more than RMB 3 trillion in onshore bonds, and the five-year Chinese treasury bond futures introduced in Hong Kong in early August provided them with a practical tool to hedge against the risks associated with their holdings. The Hong Kong Securities Regulatory Commission is also supporting Hong Kong Exchanges and Clearing Limited to launch more RMB foreign exchange futures and RMB denominated gold futures, and is also studying further optimization of swaps, such as adding more reference interest rates.

In summary, Leung Fung-yee said that we are at an important moment in history. Both AI and the internationalization of the RMB bring once-in-a-lifetime opportunities — we should seize these opportunities with great ambition, while adhering to the principles of good governance, establishing sound surveillance, and focusing on creating real value for investors, customers, the market, and the economy as a whole.