The Hong Kong Securities and Futures Commission (SFC) plans to introduce several enhancements to facilitate the trading of tokenized funds on virtual asset trading platforms (VATPs). According to Cai Fengyi, Executive Director of the SFC's Investment Products Division, these measures will include the addition of payment and settlement functions on the Hong Kong Stock Exchange's fund platform. Cai emphasized the need for more regulatory frameworks and risk prevention measures for secondary market trading of tokenized funds. Discussions are ongoing with fund companies and trading platforms to establish appropriate measures. The recent clarification that secondary market trading of tokenized funds is exempt from stamp duty is expected to further support these developments.