Hong Kong Fund Inflows Reaches HK$33.5 Billion in Q4 2023

Hong Kong Fund Inflows Reaches HK$33.5 Billion in Q4 2023

by March 11, 2024

The Securities and Futures Commission (SFC) announced the publication of its Quarterly Report for the period ending 31 December 2023, detailing significant operational and financial milestones achieved in the quarter.

The report showcases a robust quarter for the asset management sector, with net fund inflows into Hong Kong domiciled funds soaring by 179 percent quarter-on-quarter to HK$33.5 billion, culminating in a year-on-year increase of 92.9 percent to HK$87.1 billion for 2023.

The total assets under management by the 914 Hong Kong-domiciled fund grew by 4.9 percent year-on-year. The SFC’s authorisation of Asia’s first and the world’s largest exchange-traded fund investing in Saudi Arabian listed stocks highlighted the quarter, marking a significant milestone in November.

Further success was noted in the Mainland-Hong Kong Stock Connect, with average daily northbound trading increasing by 8 percent year-on-year in 2023 and southbound trading maintaining its momentum. Both northbound and southbound trading segments reported net buys, showcasing growing investor confidence and market integration.

The SFC also made strides in enhancing the listing market framework, approving rule amendments for GEM listing reforms, and introducing a streamlined process for Main Board transfers. The regulatory body processed 135 listing applications during the quarter, reducing average processing time by 11 percent year-on-year to 108 business days.

Stability was observed in the number of SFC licensees and registrants, totaling 48,091 as of 31 December. License applications have seen a 16 percent year-on-year increase, with significant contributions from Type 9 (asset management) and Type 4 (advising on securities) regulated activities, which accounted for 88 percent and 66 percent of the licensed corporation applications approved during the quarter.

When the transitional period for the VATP licensing regime concluded on 29 February 2024, 24 applications were submitted in accordance with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.

In an ongoing effort to protect investors, the SFC has ramped up its public awareness campaigns against investment scams, particularly those related to virtual assets (VAs).

A comprehensive publicity strategy has been deployed, including various media channels and collaboration with the Hong Kong Police Force to enhance investigative efforts against VA-related frauds.

Featured image credit: Edited from Freepik