TechFlow news, October 30 — According to the Hong Kong Wen Wei Po, Securities and Futures Commission (SFC) Chairman Timothy Tong said that Hong Kong currently has no regulations governing listed companies' investments in cryptocurrencies. The SFC will monitor market developments and study whether guidance should be provided.
It is understood that the Hong Kong Stock Exchange has previously raised questions about digital asset treasury (DAT) transformation plans from at least five companies, none of which have received listing approval. Hong Kong currently prohibits listed companies from transforming into entities solely dedicated to accumulating cryptocurrencies.
Tong noted that after U.S. DAT companies purchase digital assets, their share prices and market valuations often experience premiums exceeding double. He urged investors to understand the true value of DATs and warned that such premiums could "vanish overnight."
Regarding the boundaries for listed companies investing in Bitcoin, Tong stated it is difficult to define a "red line" before new rules are introduced. He emphasized that it "should be impossible" for companies to list in Hong Kong under the DAT model at present and called on investors to carefully assess related risks.
