SFC Chief Says AI Guidance Under Review, Supports More RMB Derivatives

SFC Chief Executive Julia Leung said the regulator is considering whether to issue further guidance on agentic AI applications, while also backing more RMB derivatives products, according to ETNet. Leung said accountability for AI should be built into system design, including what data AI can access, what decisions it can support, which actions require human approval, what thresholds trigger escalation and how records are retained. She said any guidance would aim to clarify expected regulatory outcomes, including clear responsibility, effective human oversight, controlled access, pre-deployment testing, ongoing monitoring, operational resilience and rapid escalation and remediation when problems arise. She also said the SFC is continuing its digital transformation to improve regulatory efficiency, market surveillance and operational resilience, with benefits expected to include shorter licensing processing times and earlier detection of misconduct and fraud. On RMB internationalisation, Leung said Hong Kong is technically ready for RMB trading counters to be included in Stock Connect. She added that efficient access to RMB funding and deeper liquidity are important, and said Hong Kong is developing a fixed-income and currency trading platform to connect onshore and offshore RMB markets. She said the scope for using offshore RMB fixed-income instruments as collateral will be expanded by the end of this year to Hong Kong Futures Clearing and Hong Kong Securities Clearing.