What are your thoughts?
Virtual asset trading platforms operating in Hong Kong must now ensure safe custody of assets, avoid conflicts of interest, and comply with cyber security standards. The exchange must also assess and set up exposure limits for retail investors and only allow trading in highly liquid tokens. Bit crypto trading is currently banned on the mainland, so operators do not accept retail traders from China. It's a curious dynamic given that China has backed Hong Kong's push to become a virtual asset hub despite cracking down on crypto trading back in 2021. So the question is: should investors be worried about policy U turns? It has a different regulatory regime that is well respected by international investors. Capital flows in and out of Hong Kong are completely free for international investors who want to purchase main land Chinese stocks listed in Hong Kong. They can do that without restrictions. The central government has been using Hong Kong to pilot a number of teams in financial services, and I don't think that there is anything for investors to worry about.