Hong Kong proposes new law to boost REIT restructuring and market oversight
Hong Kong's Secretary for Financial Services and the Treasury moved the second reading of the Securities and Futures (Amendment) Bill 2026 on 11 November. The bill introduces a statutory mechanism for REIT restructuring and compulsory acquisition, and expands market misconduct rules to cover listed
Hong Kong’s Secretary for Financial Services and the Treasury, Mr. [Name], moved the second reading of the Securities and Futures (Amendment) Bill 2026 in the Legislative Council on 11 November. The bill aims to strengthen Hong Kong’s position as a leading international asset and wealth management centre, which the national 15th Five-Year Plan explicitly supports.
According to industry reports, Hong Kong has become the world’s largest cross-border wealth management centre and is expected to remain in the lead for the coming years. A Securities and Futures Commission (SFC) survey showed that assets under management in Hong Kong reached a record high of HK$42.2 trillion by the end of 2025, a year-on-year increase of 20 per cent.
The bill amends the Securities and Futures Ordinance (Cap. 571) and its subsidiary legislation to introduce a statutory mechanism for real estate investment trusts (REITs) to undertake restructuring or compulsory acquisition. The mechanism is largely modelled on the Companies Ordinance (Cap. 622), providing clearer merger, restructuring and privatisation procedures while ensuring unit holders receive protections similar to those under company law. Adjustments have been made to reflect the nature and characteristics of REITs.
The bill also enhances the market misconduct and disclosure regime applicable to listed collective investment schemes on the Hong Kong Stock Exchange. Current provisions under the Securities and Futures Ordinance focus more on listed companies. The SFC proposed amendments to explicitly cover listed collective investment schemes, aligning with international regulatory standards and aiming to boost investor protection and confidence.
The SFC conducted a public consultation on the proposals, which received broad support. The government also sought views from the Legislative Council’s Financial Affairs Committee in July. Industry and lawmakers generally backed the measures.
If passed, the bill will be implemented in two phases. Amendments relating to the REIT regime and market misconduct will take effect upon gazettal. Amendments on disclosure of inside information and interests are expected to take effect on 4 December 2027, allowing the industry sufficient time to familiarise itself with updated electronic disclosure forms and guidance.