Hong Kong is expanding tokenization into areas like shipping leasing and corporate fund management

Hong Kong is attempting to further integrate tokenization into its economic activities. The Financial Services and Treasury Bureau Director, Christopher Hui, revealed Hong Kong’s plans to integrate blockchain technology into its finance industry. 

During interviews conducted by Southern Finance 21st Century Economic Report, the Financial Services and Treasury Bureau Director, Christopher Hui, said that Hong Kong is intentionally guiding financial technology to “turn from virtual to real.” The country intends to achieve this by using blockchain technology to support its economic activities.

Hui explained that tokenization will be used to improve efficiency in areas such as international shipping, leasing, and corporate fund management. 

This year, Hong Kong issued its third batch of digital green bonds. It doubles as the largest digital bond issuance in the world, totaling HK$10 billion. The batch was issued under Hong Kong’s updated Digital Asset Development Policy Declaration 2.0. 

Hong Kong is executing a tokenization strategy

In the digital currency space, Hong Kong has completed the required legislation for stablecoins, and its licensing applications are already under review. The government aims to issue the first batch next year, but will strictly limit the initial licenses. 

The Hang Seng Index has risen more than 30% this year, and the Hang Seng Tech Index has risen by nearly 40%. Both are impressively outperforming many major global markets, but Hong Kong’s tokenization strategy is designed to attract long-term global capital. 

Hui confirmed that the Hong Kong Stock Exchange (HKEX) is already technically compatible with T+1, and that the next step is upgrading brokerage systems. A consultation paper will be released next year to set a clear timetable for the transition from the T+2 cycle that has been in use.

HKEX estimates that by the end of 2027, 88% of global stock markets will operate on T+1 or T+0. These faster settlements will strengthen Hong Kong’s connectivity with mainland A-shares and improve overall market efficiency.

Hui also stated that Hong Kong is making upgrades that will align with accepted international market structures and protect minority investors. Public consultation on these changes is expected next year.

Capital market reforms 

This year, Hong Kong became part of the London Metal Exchange’s global delivery network, and within just nine months, over 8,000 tons of non-ferrous metals have been warehoused in the city. 

The government has also recognized the importance of gold as a store of value. The average daily trading volumes of Hong Kong-traded “99 gold” reached HK$940 million in 2024, rising 28% year-on-year, and exceeded HK$1.2 billion in early 2025.

To strengthen its position in global gold pricing, the Hong Kong government plans to expand its gold storage capacity to 2,000 tons within three years and launch a central gold settlement system next year.

The government also plans to strengthen its relationship with the Shanghai Gold Exchange, which opened its Hong Kong warehouse in June.

Nearly 10,000 overseas-parented companies now operate in Hong Kong. Mainland firms represent over 26% and many of them have shifted from just exporting products to being part of industrial and supply-chain setups overseas, creating demand for Hong Kong’s financing, risk management, accounting, and insurance services.

Hong Kong is now considering using tax incentives to attract these enterprises to establish global treasury centers in the city. It has also changed its laws to allow companies registered abroad to re-domicile in Hong Kong. Nearly 20 applications have already been received since then.

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