Hong Kong SFC: Current RWA tokenization products on the market are temporarily not suitable for stock trading

Jinse Finance reported that Yip Chi-hang, Executive Director of the Intermediaries Division responsible for virtual asset trading at the Hong Kong Securities and Futures Commission, stated in an interview with Hong Kong media that WA accounts for less than 1% of the global digital asset management scale (AUM), and trading volume is even lower than 1%. Currently, the RWA tokenization products on the market are mainly related to fixed income products (such as money market funds). If they are to be applied to securities trading and settlement, the latency of blockchain technology offers no advantage over the high efficiency of traditional exchange trading and settlement systems, making it difficult to accommodate high-frequency trading and temporarily unsuitable for stock trading. Yip Chi-hang also revealed that the Intermediaries Division of the Hong Kong Securities and Futures Commission has about 300 colleagues, of which 50 are highly involved in virtual asset regulatory matters, with responsibilities including licensing, AML, etc., and plans to hire external personnel to enhance work effectiveness.