The Securities and Futures Commission (SFC) has released its Quarterly Report summarizing key developments from April to June 2023. The report highlights new initiatives aimed at establishing Hong Kong as an offshore renminbi and risk management center. One of these initiatives is Swap Connect, which allows Mainland bond investors to hedge interest rate risks from Hong Kong. As of June, there were 540 Mainland interbank interest rate swap contracts traded under Swap Connect. Additionally, the report mentions the launch of RMB counters for 24 stocks under the HKD-RMB Dual Counter Model, which has seen smooth and orderly trading with an average daily turnover of RMB193.9 million. The report also emphasizes the strong momentum of Southbound ETF trading through the debut year of ETF Connect, with an average daily turnover of $4.64 billion in June 2023. In support of the Fintech ecosystem, the SFC introduced a licensing regime for virtual asset trading platform operators and warned about the risks associated with trading virtual assets on unregulated platforms. The report also highlights enforcement actions against fraudulent activities and the SFC’s commitment to carbon neutrality by 2050. Notable figures include the number of licensees and registrants, new listing applications, fund authorizations, compliance inspections, requests for trading records, and disciplinary actions resulting in fines totaling $9.2 million.