**TechFlame News** — According to *Crowdfund Insider*, Julia Leung, Chair of Hong Kong’s Securities and Futures Commission (SFC), stated at the Caixin Summer Summit that Hong Kong will continue to expand its digital asset regulatory framework and promote the application of artificial intelligence (AI) in financial services, aiming to strengthen its status as an international financial center. Leung noted that regulators will refine the regulatory framework covering areas such as digital asset trading, custody, investment advisory, and asset management, while adhering to the principle of "same business, same risks, same rules" to strike a balance between innovation and investor protection. She added that as AI becomes more widely adopted in the financial sector, regulatory focus will include potential risks such as model reliability, algorithm bias, data privacy, and cybersecurity, emphasizing that financial institutions must enhance risk management amid innovation. In addition, the SFC and relevant regulatory bodies have expanded the regulatory sandbox mechanism, allowing financial institutions to test generative AI applications in a controlled environment to facilitate technological rollout and compliance. Analysts suggest that Hong Kong is advancing its dual-track regulatory framework for digital assets and AI to further enhance the openness and standardization of its financial markets, while boosting its competitiveness in the global capital landscape.