Hong Kong legislator Li Weihong wants the city’s government to expand virtual asset derivatives and futures markets.
Li Weihong has already submitted proposals to Financial Secretary Paul Chan ahead of the planned budget announcement by the end of February.
Li Weihong is encouraging more virtual and derivatives markets in Hong Kong
Li Weihong wants the new financial budget to include more revenue-generating measures, including those that will expedite the development of virtual assets and futures markets.
He advocated that the government ramp up license approvals and allow 23-hour trading on the Futures Exchange. He also wants more future products traded during the holidays and an increase in the number of virtual asset options and future derivatives.
In June 2023, Hong Kong initiated a new licensing regime for crypto companies. Last year, it said it would also license stablecoin providers. The city’s stablecoin bill is still being discussed.
A few days ago, Hong Kong reportedly accepted cryptocurrency as proof of asset for investment immigration applications. Accountant Xiao Yaohe confirmed to journalist Wu that on Feb. 7, a client successfully used crypto worth HK$30 million ($3.8 million) as proof of assets to apply for investment immigration to the Hong Kong Investment Promotion Agency.
Hong Kong legislator pushes for gold trade, securitize assets and financial reforms
Hong Kong legislators have urged the government to prioritize and accelerate the development of the international gold trading center and join the Regional Comprehensive Economic Partnership (RCEP). He says that would make it easier to export gold and other precious metals tariff-free from Hong Kong to other RCEP associates.
Weihong believes the Hong Kong government should also work on securitizing the Northern Metropolitan Area, three cross-harbor tunnels, and the Tai Lam Tunnel. Securitization could help boost revenue collection and reduce fiscal deficit pressure.
Additionally, he has called for the retailization of financial products, including silver bonds, iBonds, and Airport Authority bonds.
Furthermore, Weihong believes the current GEM reform strategies are failing, wanting regulatory authorities to assess pre-emptive regulatory measures and settle on disclosure-based principles.
He also wants the integration of dual filing mechanisms and for the government to lift all restrictions that could hinder mergers and acquisitions for listed companies.
Weihong insists that they need to upgrade their listing procedures and have over-the-counter (OTC) markets for delisted companies.
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