Hong Kong Regulators Launch GenAI Sandbox++ Across Five Financial Sectors, March 2026

On 5 March 2026, the Hong Kong Monetary Authority (HKMA), Securities and Futures Commission (SFC), Insurance Authority (IA), and Mandatory Provident Fund Schemes Authority (MPFA) published a joint circular (Ref: HKMA/B1/15C; SFO/IS/009/2026; INS/TEC/10/48; SU/CTC/2026/001) inviting regulated institutions to apply for participation in the Generative Artificial Intelligence Sandbox++ (GenA.I. Sandbox++). This initiative expands an existing HKMA-only sandbox, originally launched in 2024 for authorized institutions in the banking sector. Applications are open until 30 June 2026. The circular imposes no new regulatory obligations; it is a supervised testing program offering infrastructure access, not a binding rule change.

The Sandbox++ is open to five categories of institution, each governed by its own authorizing statute: (a) Authorized Institutions under the Banking Ordinance (Cap. 155); (b) Authorized Insurers and Licensed Insurance Broker Companies under the Insurance Ordinance (Cap. 41); (c) MPF Approved Trustees and Principal Intermediaries under the Mandatory Provident Fund Schemes Ordinance (Cap. 485); (d) Licensed Corporations under the Securities and Futures Ordinance (Cap. 571); and (e) Stored Value Facility Licensees under the Payment Systems and Stored Value Facilities Ordinance (Cap. 584). Participating institutions receive complimentary access to GPU computing resources at the Hong Kong Cyberport Management Company Limited's A.I. Supercomputing Centre, targeted supervisory guidance from their respective regulator, and technical support from Cyberport. Each institution submits its application through the dedicated channel of its own regulator.

For licensed corporations under Cap. 571, the SFC accepts Sandbox++ applications. Securities brokers, asset managers, and other SFC-regulated firms may now test generative AI applications in a supervised environment without bearing the cost of high-performance computing infrastructure. The program supports cross-sector and cross-boundary use cases, facilitated by Collaboratory workshops with technology partners. This reflects the four regulators' intent to align AI adoption across the full Hong Kong financial system, extending beyond the initial banking-sector cohorts from 2024 and 2025.

The application deadline is 30 June 2026. Assessment criteria are set out in the Annex to the circular. Participation is voluntary; no institution is required to apply. The Sandbox++ introduces no amendments to licensing conditions, codes, or guidelines under any of the governing ordinances listed above.

Source: Hong Kong Monetary Authority, Securities and Futures Commission, Insurance Authority, and Mandatory Provident Fund Schemes Authority, Joint Circular on the Expansion of Generative Artificial Intelligence Sandbox, Ref: HKMA/B1/15C; SFO/IS/009/2026; INS/TEC/10/48; SU/CTC/2026/001, 5 March 2026, https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/intermediaries/supervision/doc?refNo=26EC11. Confirmed current as of 19 March 2026.

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