Regulatory Alerts2026-07-24
Added · Updated
Circular on listed structured funds
The Securities and Futures Commission establishes additional authorization requirements for public offerings of listed structured funds in Hong Kong, specifically targeting Leveraged and Inverse Products and Defined Outcome Listed Structured Funds. Providers must implement distinct naming conventions, disclose key risks in Product Key Facts Statements, maintain ongoing market makers, and offer performance simulators for non-delta-one products. Leveraged and Inverse Products are restricted to a maximum leverage factor of 2x to -2x, must be named to reflect daily rebalancing, and require robust capacity monitoring and business continuity plans, particularly for Single Stock variants.
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