Virtual assets "inherently speculative and volatile"
Secretary for Financial Services and the Treasury, Christopher Hui, said on Saturday that the JPEX saga had shown the importance of regulating virtual asset trading platforms. His comments came as 27 people have so far been arrested in connection with the unlicensed cryptocurrency platform, with about HK$1.5 billion reported losses. When asked about whether there was an oversight by the local regulator Securities and Futures Commission (SFC) for not disclosing the list of trading platforms with pending licence applications before, Hui said authorities have emphasised through different channels that only licensed institutions are in compliance. "Virtual assets are still a new thing. And regardless of whether they are licensed or not, they are inherently speculative and volatile products," he told an RTHK programme. "Therefore, any investor who truly wants to participate needs to thoroughly understand the nature of these assets and their risk tolerance," he added. Hui also noted a report that said the local bourse has slipped to eighth place as an initial public offering (IPO) fundraising hub. Shanghai, Shenzhen, India, and Indonesia are all ahead of the SAR.  "The amount of funds raised in IPO listings is influenced by multiple factors. Of course, as an international financial centre, our stock exchange and various financial intermediaries have never stopped promoting Hong Kong's advantages and attracting issuers to come," he added. Hui also said the dedicated task force - which is currently exploring ways to enhance stock market liquidity -  aims to submit a report to the Chief Executive before the upcoming Policy Address.