Hong Kong Officials Respond to “Influx of Middle Eastern Capital”: Two-Way Exchange Underway; Hong Kong Tokenized Funds Already Listed on Middle Eastern Platforms

According to the Hong Kong Commercial Daily, in response to growing discussions in Hong Kong about “Middle Eastern capital flowing into the city,” Mr. Chan Ho-lam, Deputy Secretary for Financial Services and the Treasury of the Hong Kong SAR Government, stated that there has indeed been an increase in client inquiries regarding how to transfer funds to Hong Kong or open accounts here. He emphasized that exchanges between Hong Kong and the Middle East are two-way: a licensed virtual insurance company based in Hong Kong has already expanded its operations into Saudi Arabia and the United Arab Emirates; Hong Kong’s tokenized funds have been listed on Middle Eastern wealth management platforms; and Asian investors can purchase Islamic bond ETFs in Hong Kong—providing Middle Eastern investors with a familiar and trusted market. Mr. Chan stressed that the Hong Kong government is actively promoting fintech and digital assets. It is currently formulating legislative proposals for licensing regimes covering digital asset trading and custody services, aiming to establish a comprehensive regulatory framework and position Hong Kong as a global hub for digital asset innovation.