According to Foresight News, the Hong Kong Securities and Futures Commission (SFC) has recently received proposals to tokenize authorized products, such as public funds. Tokenization refers to the creation of blockchain-based tokens that represent or are intended to represent a small portion of the ownership of an investment product. The information was revealed in a keynote speech by SFC member and Executive Director of Investment Products Division, Choi Fung Yee, at the 2023 Bloomberg Buy-side Forum.

Choi Fung Yee stated that the SFC is currently working on more detailed guidance on the tokenization of authorized investment products and will release it in the short term. She added that considering the nascent stage of Hong Kong's value-added tax system, it would be more appropriate to initially allow the tokenization of SFC-authorized products for primary transactions. Secondary transactions on virtual asset trading platforms (VATP) would require more cautious and careful consideration.