Hong Kong's Chief Executive John Lee unveiled the latest Policy Address today, outlining plans to submit legislative amendment bills within the year to streamline the privatization and restructuring processes for real estate investment trusts (REITs). The move aims to boost market flexibility and attract overseas listings on the city's bourse. Additionally, the government will strive to expedite the integration of REITs into the Connect programs at the earliest opportunity.

Lee also announced that the Hong Kong Central Securities Clearing and Settlement System for gold will become operational in the first quarter of 2027. Details of a full-size gold futures contract, denominated in renminbi and settled by physical delivery, are set to be unveiled. Concurrently, the regulatory framework for over-the-counter derivatives will be refined to strengthen risk management and capital efficiency in precious metals trading.

The Hong Kong Monetary Authority (HKMA) has been tasked with evaluating a modest increase in gold holdings within the Exchange Fund and participating in the local spot and futures markets. Existing gold inventories will be progressively relocated to designated vaults managed by the Guangjin Clearing Company. In parallel, the regulatory framework for tokenized investment products will be enhanced to promote the tokenization of gold and other assets.

To foster a sustainable finance ecosystem, Lee indicated that Hong Kong will launch a "Green Stock Certification Scheme" to provide third-party authoritative endorsements for qualifying companies, reducing due diligence costs for cross-border investors. The HKMA will also explore the use of technology to detect suspicious transactions, implement a digital asset custody monitoring system, and deploy big-data market surveillance alongside anti-money laundering monitoring tools, with a particular focus on bolstering detection capabilities against fraud risks arising from generative content.