The Securities and Futures Commission (SFC) of Hong Kong has authorized secondary market trading for tokenized public funds, marking its first such approval as of October 26, 2026. Two money market funds managed by ChinaAMC, one of China’s leading asset managers, are now available for trading on the licensed platform PantherTrade, offering investors new flexibility in the management of their assets.
Regulatory framework for tokenized funds
The SFC expanded its tokenization guidelines on April 20, 2026. This move extended previous rules beyond primary subscriptions and redemptions, with the updated framework drawing inspiration from the regulations covering exchange-traded funds (ETFs). King & Wood Mallesons, a law firm active in Hong Kong’s financial sector, noted the regulatory evolution provides greater clarity for asset managers launching blockchain-based financial products.
“This initiative allows a traditional securities product, once tokenized, to be traded in the evening and on weekends,” explained SFC chief executive Julia Leung earlier this year when the new framework was announced.
ChinaAMC products begin trading on PantherTrade
PantherTrade, a licensed digital asset exchange in Hong Kong, began offering trading in ChinaAMC’s CUMFU-USD and CAMFF-HKD tokenized funds on October 15, 2026 at 17:00 HKT. Both digital assets are aimed at both retail and institutional investors, expanding access to money market funds using blockchain technology.
Each token represents a full or fractional share of ChinaAMC’s US dollar or Hong Kong dollar Digital Money Market Fund. However, while ownership is recorded off-chain, PantherTrade does not currently allow users to deposit or withdraw these tokens. This means investors may face limitations in moving their assets outside the platform.
According to information from the Hong Kong Exchanges and Clearing (HKEX), ChinaAMC’s USD-denominated fund manages $564.33 million, and its HKD-denominated fund holds $98.40 million. The combined value of both funds is $662.73 million, against which the tokenized share classes are launched. This figure describes assets under management overall, not the actual value traded through PantherTrade.
| Fund Name | Currency | Assets Under Management (AUM) |
|---|---|---|
| CUMFU-USD | USD | $564.33 million |
| CAMFF-HKD | HKD | $98.40 million |
| Total | – | $662.73 million |
Mini dictionary: ChinaAMC is a major Chinese asset management company offering mutual funds, ETFs, and other investment products. PantherTrade is a regulated digital asset exchange in Hong Kong focused on tokenized securities trading.
Trading mechanics and investor safeguards
In primary markets, investors interact directly with funds for subscriptions and redemptions during set dealing windows, transacting at the next net asset value (NAV). Secondary market trading on PantherTrade allows buyers and sellers to transact outside regular trading hours, but prices respond to market demand and may differ from NAV.
Information on trading volumes and market depth for the tokenized fund pairs remains unavailable, leaving the degree of liquidity since launch unclear. The SFC’s framework requires at least one appointed market maker for each product, with a minimum three-month notice period required before departure.
To protect investors, platforms must display an indicative NAV every 15 seconds and generate alerts when trade prices deviate sharply from these values. Additional controls such as price bands, cooling-off periods, and transparent risk disclosures further safeguard participants.
Tech advances and watchful global asset managers
Hong Kong’s asset management sector is investing in digital infrastructure for tokenized fund trading. In October 2025, the Hong Kong Monetary Authority (HKMA) tested digital currency settlements for tokenized funds and announced plans for 24/7 on-chain settlement by late 2026. Standard Chartered, a global bank, plans to utilize HKDAP for settling tokenized money market funds in the final quarter of 2026. These steps have attracted attention from global asset managers monitoring investor engagement and real-world liquidity outcomes.
A survey by Boston Consulting Group and Aptos in October 2025 found 61% of respondents expected to boost investment allocations due to tokenization’s flexibility and accessibility. Still, the question remains whether extended trading hours and technical breakthroughs will translate into actual liquidity in these new markets.
Mini dictionary: HKMA (Hong Kong Monetary Authority) is the territory’s central banking institution, overseeing monetary policy and financial system stability. HKDAP is an emerging blockchain-based platform aiming to support digital asset settlements in Hong Kong.
Limits of round-the-clock trading
While 24/7 tokenization unlocks more trading opportunities, seamless liquidity cannot be guaranteed outside traditional hours. Market makers play a key role, but their departure with sufficient notice could affect liquidity. PantherTrade’s policy of restricting deposits and withdrawals further constrains investor flexibility in moving tokenized assets off-platform.
Hong Kong continues to test whether these markets can generate consistent liquidity, particularly when standard markets are closed and trading volume is lower.
