Hong Kong legal and regulatory newsletters

HKEX is consulting on changes to its Corporate Governance Code and related Listing Rules to limit the number of INEDs’ concurrent directorships and tenure and increase disclosure of board dividend decisions

The SFC’s revised Circular on Streamlined Requirements for Eligible ETFs adopting a Master-feeder Structure allows SFC-authorised feeder ETFs to invest in actively managed overseas-listed master ETFs.

HKEX published the consultation conclusions on climate disclosure requirements and amendments to Listing Rules Appendix C2 applicable to HKEX-listed cos and a phased implementation of the enhanced requirements.

The SFC’s March Consultation Paper proposes a statutory scheme of arrangement and compulsory acquisition mechanism for REITs & extending the SFO market conduct regime to listed

HKEX sanctioned 3 listed companies in Q1 2024 for misappropriation of company assets, misleading prospectus disclosure and breach of directors’ duties in its continued clamp down on corporate misconduct.

HKEX published Listing Rules amendments (effective 11.6.2024) allowing HKEX-listed cos to issue and hold treasury shares subject to the laws of their country of incorporation and their constitutional documents

The FSTB is proposing to introduce a new licensing regime to regulate providers of over-the-counter trading of virtual assets under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance

The SFC issued circulars providing guidance on the tokenisation of investment products and conduct-related guidance to intermediaries engaging in tokenisation of securities-related activities in Hong Kong.

The FSTB is proposing to introduce an implied consent mechanism and streamline the notification requirement for Hong Kong-incorporated companies disseminating corporate communications by means of their website.

HKEx published its analysis of issuers’ Corporate Governance Code compliance, particularly the requirements on corporate culture, long-serving INEDs, board diversity, and risk management and internal controls.

The new exemption allows existing shareholders and/or their close associates and cornerstone investors to subscribe for or purchase additional shares in an IPO if the size exemption conditions are met.

HKEX has postponed to 1 January 2025 the proposed implementation date for the mandatory and additional climate-related disclosures proposed in its April 2023 consultation paper

The SFC has published a Consultation Paper proposing to introduce new Guidelines for Market Soundings aimed at clarifying the standard of conduct expected of those involved in market sounding

On 21 September 2023, the Hong Kong SFC published Consultation Conclusions on its proposed amendments to the Codes on Takeovers and Mergers and Share Buybacks. The amendments took effect on 29 September 2023.

HKEX is consulting on Listing Rule changes to enable listed issuers to hold and resell treasury shares, if allowed by the laws of their respective places of incorporation and their constitutional documents

The Hong Kong Chief Executive delivered his second Policy Address on 25 October 2023, titled "A Vibrant Economy for a Caring Community".

The Hong Kong police have arrested a number of people allegedly involved in promoting the products and services of unlicensed crypto exchange, JPEX, although the parties directly involved have reportedly

HKEX issues consultation paper proposing GEM listing reforms to enhance attractiveness for SMEs seeking capital for growth, while maintaining high standard of investor protection.

HKMA issued its 2023 Fintech Promotion Roadmap with its key initiatives to boost the financial services sector’s Fintech adoption, particularly in wealth management, insurance and green investment sectors

Changes to the HKEX Listing Rule will reduce the number of hard copy documents required to be submitted and circulated by listed issuers. The Listing Rule changes will take effect on 31 December 2023

Hong Kong will expand its insider dealing regime to cover offshore insider dealing in HK-listed securities & HK insider dealing in securities listed offshore, & their derivatives, according to the SFC

The SFC has warned unlicensed virtual asset trading platforms of the potential legal & regulatory consequences of false claims to have applied for SFC-licensing, and providing prohibited services, eg staking

The SFC and HKMA published a joint circular with a streamlined approach that licensed intermediaries can adopt in complying with the suitability obligations for sophisticated professional investors

Revised HKEX Listing Rules for PRC-incorporated issuers reflect PRC regulatory changes & a new filing regime for PRC issuers & overseas-incorporated issuers with their principal operations in China

SFC Chief Executive Officer, Ms. Julia Leung, emphasised the need for Hong Kong to develop a sustainable small-cap stock market to meet the needs of small and medium-sized enterprises (SMEs) and investors

HKEX has published the revised HKEX Listing Rules and Guidance Materials that will take effect on the October 2023 launch of its new digital FINI (Fast Interface for New Issuance) platform

HKEX published a Consultation Paper proposing to mandate all listed issuers to make climate-related disclosures in their annual ESG reports and introduce additional ISSB Climate Standard-based disclosures

The HK Monetary Authority has urged banks to “support virtual asset service providers licensed and regulated by the Securities and Futures Commission on their legitimate need for bank accounts in Hong Kong”

The HKEx has issued its 8th Listed Issuer Regulation Newsletter for HK listed issuers covering auditing and financial reporting, new rules on share schemes and disclosure of business valuations in transactions

The HKMA has announced the commencement of its e-HKD Pilot Programme involving 16 firms across the financial, payment and technology sectors to examine different use cases and design issues.

HK’s SFC is consulting on changes to its Codes on Takeovers and Mergers and Share Buy-backs set out in its Consultation Paper on the proposed amendments to the Codes on Takeovers and Mergers and Share Buy-backs

The SFC has issued a Circular on the implementation of its new AMLO licensing regime for centralised virtual asset trading platform operators which took effect on 1 June 2023

The FSTB issued a public consultation on a new proposed inward re-domiciliation regime for Hong Kong under the HK Companies Ordinance detailing the conditions and application process of the proposed regime.

The SFC has finalised the detailed regulatory requirements for SFC-licensed virtual asset trading platforms with the publication of its consultation conclusions on 23 May 2023

On 24 March 2023, the SFC published its consultation conclusions on proposed amendments to introduce new Type 13 regulated activity to regulate depositaries of SFC-authorised collective investment schemes

HKEX published a Consultation Paper proposing to mandate all listed issuers to make climate-related disclosures in their annual ESG reports and introduce additional climate-related disclosures

HKEX published its March 2023 Enforcement Bulletin emphasising the importance of proper disclosure by listed issuers and their directors and the consequences of providing misleading or incomplete information.

The SFC issued new guidance for H share issuers following the announcement of New PRC Regulations for overseas listings and repeal of the Special Regulations and Mandatory Provisions effective 31 March 2023

On 31 March 2023, new Chapter 18C of the HKEX Listing Rules and and Guidance Letter HKEX- GL115-23 took effect allowing Specialist Technology Companies to list on the HKEX’s Main Board

HKEX published a Consultation Conclusions on the new listing regime for Specialist Technology Companies on the Main Board effective 31 March 2023, with reduced market capitalization thresholds

The report concludes that by connecting international investors to China’s carbon markets, Hong Kong could play a superconnector role linking investors with carbon projects

HKEX will amend its Listing Rules for PRC incorporated issuers to reflect recently announced changes to China's regulation of overseas listings by domestic companies

The SFC proposes new regulatory requirements for Hong Kong licensed VA trading platform operators and seeks feedback on whether they could offer services to retail investors, subject to additional requirements

HKEx published its 7th Listed Issuer Regulation Newsletter covering amendments to the HKEx Listing Rules on share option and share award schemes and financial year-end reporting and AGMs

Under the Companies (Amendment) Ordinance 2023, companies incorporated in Hong Kong will be able to hold fully virtual or a hybrid mode of virtual and physical general meetings

On 31 January 2023, the HKMA published its Consultation Conclusions on proposals to regulate payment-related stablecoins set out in its Discussion Paper on Crypto-assets and Stablecoins published a year earlier

All fundraising activities, online or offline, that raise funds publicly from individuals or entities of Hong Kong, or individuals or entities located in Hong Kong, would require prior approval

The scope of stocks eligible for Southbound trading will be expanded to include the stocks of international companies that are primary-listed in Hong Kong and are constituents of Hang Seng Composite Indices

The HKEX has published a Consultation Paper on proposals to expand the paperless listing regime. This follows the adoption of various paperless initiatives in 2021 to improve efficiency and lower costs.

Inland Revenue (Amendment) (Taxation on Specified Foreign-sourced Income) Ordinance 2022 gazetted on 23 December 2022 which enacts a Hong Kong foreign source income exemption regime for passive income

In December 2022 the HK Legco delays the Implementation Timetable of the Hong Kong VASP Regime under the HK AML/CTF Bill 2022 and the SFC issues a statement on VA Arrangements in Hong Kong.

The SFC and CSRC held its 13th high-level meeting on enforcement cooperation. It included a briefing on recent enforcement outcomes and cooperation, and a consensus to further their cooperation in future.

The SFC actions included an order under s214 SFO for Sound Global’s chairman to purchase shareholders’ shares and the first conviction of an individual under s382 SFO for obstructing SFC search operations.

The SFC issued Practice Note 24 regarding receivers, liquidators and when to commence offer period(s) based upon its observations following the SFC Takeovers Bulletin No. 52 of March 2020.

The SFC issued its Circular on Virtual Asset Futures Exchange Traded Funds setting out the requirements under which it will consider authorising Virtual Asset Futures ETFs for public offering in Hong Kong.

HKEx issued a revised enforcement sanctions statement and new cooperation guidance on the factors considered in determining sanctions for breaches of the HKEx Listing Rules.

Hong Kong Government issues Policy Statement on the Development of Virtual Assets in Hong Kong during HK Fintech Week 2022 expressing its willingness to calibrate the Local Legal and Regulatory Regime for VA.

The HKEx, SFC and HKMA Disciplinary Actions in September 2022 involved suspensions for breaching the SFC Code of Conduct, fines for contravening the AMLO, and imposing a director unsuitability statement

The HKMA published its Quarterly Bulletin issue 112 which looks at encouraging Regtech under its Fintech 2025 strategy and highlights the importance of technology in improving AML/CFT controls

The SFC obtained a court order for the chairman and executive director of Sound Global to purchase the shares held by other shareholders at a price to be determined by the court under Section 214 of the SFO.

The HKEX has issued a consultation paper on a new listing regime for Specialist Technology Companies on the Main Board of the HKEX soliciting market feedback on its proposed amendments to the HKEX Listing Rules

HKMA released a position paper entitled “e-HKD: Charting the Next Steps” outlining its next steps on the direction of the e-HKD and its policy stance on a retail Central Bank Digital Currency

The SFC has published Takeovers Bulletin No. 62 covering recent decisions on the grant of a special waiver from the mandatory general offer obligation and the applicable offer price in case of a special deal under Rule 25

The SFC has reported on its review of licensed corporations’ provision of online brokerage, distribution and advisory services and their compliance with Hong Kong’s regulatory requirements

HKEx, SFC & HKMA Disciplinary Actions in August 2022 included censuring and imposing a prejudice to investors’ interests statement against two former directors of Ping An Securities Group, and fining Commerzbank

SFC welcomes Central Government support and the three initiatives announced by the CSRC to broaden Stock Connect and further enhance Hong Kong's position as an offshore RMB centre and a risk management centre

Hong Kong’s proposed foreign source income exemption regime for passive income in response to the EU’s concerns about Hong Kong’s foreign-source income exemption regime expected to take effect on 1 January 2023.

Swap Connect Development is Jointly Announced by the PBOC, SFC, and HKMA; and is to be launched in January 2023 after completing preparations, finalising relevant rules, and obtaining regulatory approvals.

The HKEx Listing Newsletter discusses global sustainability reporting standards on climate disclosures, the relevance of low-carbon transition of Hong Kong SPACs, and recent HKEx listing developments.

The HKEx has concluded on its proposals to amend the Listing Rules relating to Share Schemes of Listed Issuers and Housekeeping Rules. Major changes include extending Chapter 17 to govern share award schemes

HKEx and SFC Disciplinary Actions in June and July 2022 include CES Capital for failure as investment manager in Hong Kong and Lam Ki Fung for fraudulently obtaining his quarterly incentive payment in Hong Kong

Any person carrying on DPMS in Hong Kong will need to be registered or cease operations in Hong Kong. The Amendment Bill contains transitional provisions for DPMS carrying on business in Hong Kong before 1 January 2023.

HKEx and SFC concluded disciplinary actions in May 2022 resulting in an order for the organisers of a global Ponzi scheme to compensate HK investors and the sanctioning of listed companies and their directors

The SFC has proposed significant amendments to the SFO to: allow it to seek investor compensation orders against regulated persons; narrow the ss 103(j) & (k) exemptions; & broaden the insider dealing regime

Any person operating a VA exchange in Hong Kong will need to apply for a VASP licence or cease operations in Hong Kong. The Amendment Bill contains transitional provisions for operators of VA exchanges carrying on business in Hong Kong before 1 March 2023

The HKEx releases circular on the 4 July 2022 launch of the inclusion of ETFs in the Stock Connect. The CSRC and SFC approves ETFs in Stock Connect and the initial list of eligible ETFs has been published

The Hong Kong regulatory enforcement actions concluded in April 2022 included the Takeovers Executive’s public criticism of two former directors for breach of the SFC Takeovers Code’s no frustrating actions rule

The CSRC and SFC announced plans to allow eligible exchange-traded funds (ETFs) by Mainland and Hong Kong exchanges in Stock Connect. Implementation of the proposed arrangements will come in about two months.

HKEx published an information paper on listing rule amendments complementing new SFC Code of Conduct provisions for issuers & intermediaries conducting bookbuilding and placing activities, effective 5.08.2022

SFC releases the end-to-end test packages and file transfer connectivity guide for the Hong Kong Investor Identification Regime (HKIDR), for the preparation work for the mandatory E2E test in mid-May and June 2022

In March 2022, the HKEx announced the results of a disciplinary action against former directors of a Chapter 21-listed investment company and the SFC published the outcomes of 4 disciplinary actions.

The HKEX listed the first special purpose acquisition company (SPAC) on its Main Board on 18 March 2022 following its introduction of a listing regime for SPACs on 1 January 2022.

On 9 March 2022, U.S. President Joseph R Biden Jr issued an Executive Order on Ensuring Responsible Development of Digital Assets initiating a comprehensive approach to cryptocurrency regulation and oversight

Recent HKEx and SFC Disciplinary Actions in February including censures, imposing a prejudice to investors’ interests statement, fining, banning for life, and requiring training on regulatory and legal topics

The SFC and HKEX brought a number of disciplinary actions against SFC-licensed intermediaries for regulatory breaches and against HKEX-listed companies for corporate misconduct in the last two months of 2021

The HKEX published an updated FAQ on the SFC and HKEX joint statement issued on 4 February 2020 on giving timing relief to HKEX listed issuers for the publication of 2021 preliminary financial results

The SFC and HKEX brought a number of disciplinary actions against SFC-licensed intermediaries for regulatory breaches and against HKEX-listed companies for corporate misconduct in the last two months of 2021

The SFC/HKMA circular of 28th January 2022 sets out guidance for intermediaries distributing virtual asset-related products or providing virtual asset dealing or advisory services

On 12 January 2022, the HKMA published a Discussion Paper on Crypto-assets and Stablecoins seeking views on proposals to regulate various activities in payment-related stablecoins

Revised HKEX Listing Rules took effect on 1 January 2022 simplifying the listing regime for companies incorporated outside Hong Kong and the PRC and extending opportunities for Chinese homecoming listings.

Corporate Governance Code and related Listing Rule amendments took effect on 1 January 2022, while a requirement to appoint a new INED if issuers’ INEDs have all served 9 years takes effect on 1 January 2023.

HKEX’s new listing regime allowing SPACs to list on the HKEX’s Main Board will take effect on 1 January 2022 under amendments to the HKEX Listing Rules, including new Chapter 18B on SPAC listings

On 17 December 2021, the Stock Exchange of Hong Kong Limited (HKEX) published conclusions to its consultation on creating a listing regime for special purpose acquisition companies (SPACs) in Hong Kong (the HKEX SPAC Consultation Conclusions) with the relevant amendments to the Rules Governing the Listing of Securities on HKEX to take effect on 1 January 2022 (the HKEX SPAC Rules)

On 29 October 2021, the SFC published its consultation conclusions on the proposed code of conduct on Hong Kong bookbuilding and placing activities and HKEX sponsor coupling.

The ICAC charged four individuals with conspiracy to defraud for concealing a “backdoor listing” agreement when placing convertible notes to increase Asia Resources’ share capital and money laundering

The SFC is considering whether retail investors should be given access to crypto ETFs through online brokers, and if so, whether the SFC should impose additional knowledge requirements or risk disclosures.

The SFC fines two sponsors in their respective breaches of their sponsor due diligence obligations for failing to conduct adequate due diligence of third-party payments which the SFC maintained raised red flags

Charltons on behalf of 7 corporate finance firms submitted responses to the HKEX consultation paper on listing SPACs in Hong Kong.

The HKEX published a consultation paper on the proposed Hong Kong SPAC listing framework, which will allow SPACS and more companies from Greater China, Southeast Asia and beyond to seek a listing on HKEX.

The Singapore Exchange (SGX) announced new rules to enable Special Purpose Acquisition Companies (SPACs) to list on the Mainboard. The rules took effect on 3 September 2021.

The SFC published its quarterly report for Q2, covering the period April to June 2021, in order to keep stakeholders and the public informed of key regulatory developments

The SFC published its Consultation Conclusions on proposals to introduce an investor identification regime for the Hong Kong securities market and an over-the-counter securities transactions reporting regime

Introduction of the new mandatory IPO settlement platform ‘Fast Interface for New Issuance’ (FINI) will settle on the revised “T+2” IPO settlement process and is expected to be launched in the fourth quarter of 2022

The MRF scheme enables Hong Kong and Thai funds authorised or approved for retail distribution in their home market to be authorised or approved for retail distribution in each other’s markets.

The MRF scheme enables Hong Kong and Thai funds authorised or approved for retail distribution in their home market to be authorised or approved for retail distribution in each other’s markets.

Registrants engaging in cash transactions at or above HK$120,000 will fall under Category B and will need to comply with the AML/CTF obligations stipulated in Schedule 2 to the AMLO

This is the latest in a line of recent High Court judicial review judgments made in favour of the HKEX which have generally endorsed its delisting procedures and the Listing Review Committee review process

The SFC and HKEX have observed an increasing number of “ramp-and-dump” schemes in recent IPOs, particularly in IPOs of companies with smaller market capitalisations.

The SFC and HKEX have observed an increasing number of “ramp-and-dump” schemes in recent IPOs, particularly in IPOs of companies with smaller market capitalisations.

The HKEX decided to adopt a smaller increase of 60% in the aggregate profit required under the Main Board’s profit test, one of three financial tests for establishing eligibility to list on HKEX’s Main Board

FSTB proposed establishing a licensing regime under the AMLO for VASPs in Hong Kong, which would require any person wishing to operate a virtual asset exchange in Hong Kong to apply for a licence from the SFC

The Hong Kong Government subsidies announced by the SFC for the establishment of Hong Kong open-ended fund companies (OFC) and the establishment and listing of Hong Kong real estate investment trusts (REITs)

The HKEX Consultation Paper proposes potentially far reaching changes to its requirements for secondary and dual primary listings of overseas companies on the Hong Kong Stock Exchange

HKEX published a Consultation Paper on the Review of the Corporate Governance Code and Related Listing Rules setting out proposals aimed at enhancing directors’ independence, board diversity and ESG disclosure

This newsletter looks in detail at the HKEX’s proposals to simplify its listing requirements for companies incorporated outside Hong Kong and the PRC.

The Panel on Financial Affairs will discuss the proposed implementation of provisions to protect directors’ personal information from public inspection which are contained in the Companies Ordinance.

On 23 February 2021, the Hong Kong SFC published its quarterly report for the fourth quarter of 2020 outlining its operations for the quarter and corporate developments.

On 31 March 2021, the HKEX published a potentially far-reaching consultation paper to streamline the listing regime for overseas listed issuers which will also affect all HKEX listed companies.

In December 2020, the HKEx published findings from its latest review of listed companies’ corporate governance practices and practitioners’ insights on ESG and Corporate Governance.

On 23 December 2020, the SFC published a circular to intermediaries outlining updates to the FAQs on compliance with suitability obligations and requirements for complex products.

The UK Listing Review published recommendations for reform of the Listing Rules, including allowing companies with dual class share structures to list on the premium segment, reducing free float requirements and relaxing SPAC rules.

The Cross-agency Steering Group announced its Strategic Plan on 17 December 2020, outlining six key focus areas and five near-term action points to promote green finance in Hong Kong. (204 characters with space)

On 24 February 2021, the Financial Secretary delivered Hong Kong’s 2021/2022 Budget Speech outlining various measures to support and enhance Hong Kong’s position as an international finance hub.

The HKEx published its latest review of issuers’ annual report disclosures, which focused on issuers’ compliance with the HKEx Listing Rules and reviewed issuers’ financial statements.

The SFC published a consultation outlining proposals to introduce a Code of Conduct on Bookbuilding and Placing Activities and separately, a proposal on Sponsor Coupling

The SFC published a consultation paper on 11 December 2020 on proposals to increase the entry requirements for licence applicants and the ongoing competency standards for individual practitioners.

Charltons responded on 11 Jan 2021 to HKEX’s Consultation Paper: The Main Board Profit Requirement on behalf of a group of 10 sponsor firms opposing the proposed increase in the profit requirement for listing.

The Takeovers Bulletin No.55 was issued in December 2020, in which SFC outlined two breaches of the mandatory general offer obligation, alerted offerors on identifying regulatory approvals and additional delisting ....

The SFC published a consultation outlining proposals to introduce an investor identification regime for the HK securities market at the trading level and an OTC securities transactions reporting regime.

The Hong Kong Government has tightened social distancing measures until 23 December 2020 in view of the latest wave of COVID-19. Regulations under Cap.599 will also be extended until 31 March 2021.

The HKEx published a consultation paper outlining proposals to increase the Main Board Profit Requirement to bring it in line with the Market Capitalisation Requirement.

The HKEx published a concept paper outlining a proposal to streamline the IPO settlement process which would see the settlement timeline shortened to one business day from the current five business days.

Hong Kong’s SFC published a consultation paper on the management and disclosure of climate-related risks by fund managers outlining proposed amendments to the Fund Manager Code of Conduct.

Hong Kong’s FSTB published proposals for a registration regime for dealers in precious metals and stones (DPMS) in line with FATF recommendations in an effort to enhance AML/CFT regulation.

The FSTB published a consultation paper proposing a new licensing regime for virtual asset exchanges under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance on 3 November 2020.

HKEx published conclusions to its consultation on corporate WVR beneficiaries with plans to allow Greater China Issuers meeting certain criteria as Qualifying Corporate WVR Issuers to secondary list under Ch.19C.

Hong Kong’s SFC reprimanded and fined Goldman Sachs US$350 million for serious regulatory failures that led to the misappropriation of US$2.6 billion in connection with the 1MBD bond transactions.

The HKEx published the consultation conclusions on the codification of general waivers and principles relating to IPOs and listed issuers in addition to other minor rule amendments.

On 18 September 2020, the SFC published a Consultation Paper on proposals to amend its Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (for Licensed Corporations).

Changes to Hong Kong’s private open-ended fund companies regime took effect on 11 September 2020 removing all investment restrictions on private OFCs and enabling Type 1 licensees to act as their custodians.

HKEx is consulting on Listing Rule amendments and extending its disciplinary and sanctioning powers under Chapter 2A of the Main Board Listing Rules and Chapter 3 of the GEM Listing Rules.

Amendments to HKEx’s Listing Rules for debt issues only to professional investors will take effect on 1 November 2020 revising the requirements under Chapter 37 of the Main Board Rules and GEM Chapter 30.

The Hang Seng TECH Index was launched on 27 July 2020 tracking the 30 largest HKEx-listed technology companies including Alibaba, Tencent Holdings, Xiaomi and Meituan Dianping.

HKEx is consulting on paperless listing and subscription, online document display and reducing the documents required to be displayed for notifiable/connected transactions. HKEX-GL86-16 is also updated.

Lack of a commercial rationale for listing was the principal reason for the rejection of 17 listing applications on grounds of lack of suitability for listing under Guidance Letter HKEX-GL68-13A in 2019

The Hong Kong Government announced tightened social distancing measures on 27 July which took effect at 0.00 am on Wednesday, 29 July 2020.

The Hong Kong Stock Exchange (HKEx) issued new and updated guidance letters in April 2020 to assist pre-revenue Biotech companies applying to list under Chapter 18A of the Main Board Listing Rules.

Tighter social distancing measures effective 15 July apply to Hong Kong catering businesses and scheduled premises until 21 July and limit group gatherings in public to 4 persons until 28 July

After a spike in locally transmitted COVID-19 cases in Hong Kong between 2 and 8 July, 2020, the HKSAR Government announced on 9 July tightened social distancing measures effective from 11 to 24 July 2020

Two Takeovers Executive disciplinary decisions relating to breaches of the Hong Kong Takeovers Code were published in June 2020. They concerned breaches of Rules 22 and 31, respectively.

the SFC reprimanded and fined Guotai Junan HK$25.2 million for internal control failures and regulatory breaches related to third party fund transfers and potential wash trades

HKEx announced plans to launch the HKEX Sustainable and Green Exchange - STAGE – to provide a database of sustainable and green investment products available in Hong Kong

Joint Consultation Conclusions on proposals for a paperless securities market for Hong Kong were published in April 2020. The proposed model for an uncertificated securities market will allow investors to hold securities in their own name and without paper documents

Hong Kong has relaxed quarantine for certain lawyers, directors of HKEx listed companies and HKEx listing applicants under the Compulsory Quarantine of Certain Persons Arriving at Hong Kong Regulation

The HKSAR Government on 16 June 2020 announced a further relaxation of the social distancing measures in Hong Kong.

The SFC continued its focus on disciplining licensed intermediaries for breaches of the SFC Code of Conduct and corporate misconduct by companies listed on the Hong Kong Stock Exchange in May 2020.

The HKSAR Government announced on 02 June 2020 the extension of social distancing measures to 18 June 2020 and the easing of immigration controls which includes the compulsory quarantine measures

The HKSAR announced on 5 May 2020 the easing of certain social distancing measures. The latest Group Gathering Regulations (Cap. 599G) came into effect on 08 May 2020 which exempted shareholders’ meetings

Hong Kong’s SFC issued a circular to licensed corporations on their cybersecurity risk management obligations and the SFC Code of Conduct requirements regarding remote office arrangements.

The SFC has issued circulars and FAQs for SFC-licensed fund managers highlighting their regulatory obligations to ensure the fair treatment of investors particularly in applying liquidity risk management tools

The SFC has issued guidance to SFC-licensed brokers on how to comply with regulatory requirements, such as brokers’ order recording obligations of client orders taken outside the office.

COVID-19 has impacted the global IPO market but Hong Kong has performed reasonably in terms of deal numbers and proceeds raised. The following is an analysis of the market performance and outlook for 2020.

Hong Kong’s SFC issued a circular and report setting out the expected regulatory standards and good industry practices for leveraged foreign exchange traders to comply with by 1 January 2021.

The HKMA announced a scheme for banks to provide a six-month principal payment holiday to eligible corporate customers aimed at providing relief for SMEs affected by the COVID-19 outbreak.

The SFC issued a circular to management companies and market makers of SFC-authorised ETFs reminding ETF fund managers and market makers of their risk management obligations amid the COVID-19 outbreak.

The following provides a summary of the funding initiatives announced by the Hong Kong Government in light of COVID-19 aimed at local enterprises and SMEs severely affected.

This newsletter sets out the Hong Kong government’s two rounds of COVID-19 Relief Measures, intended to fund the fight against the COVID-19 Outbreak and providing subsidy to keep individuals in their jobs.

The HKEx announced the planned launch of Master SPSA Service for fund managers under Hong Kong China Stock Connect on 18 March 2020.

The SFC issued its Circular to Management Companies and Trustees and Custodians of SFC-authorized funds on 27 March 2020 regarding their obligations to safeguard client interests amid COVID-19.

The SFC and HKEx issued a joint statement on the application of the prohibition on group gatherings to general meetings of HKEx Listed Issuers on 1 April 2020 following consultation with the HKSAR Government.

An analysis of Hong Kong employment law issues in current focus given the COVID-19 pandemic, including flexible working, personal data, sick leave, termination and severance and others.

A summary of the SFC’s circular to licensed intermediaries: extended deadlines for implementation of regulatory expectations and reminder of order recording requirements under COVID-19 pandemic.

A summary of the SFC’s circular to licensed intermediaries: reminder of important obligations to ensure suitability and timely dissemination of information to clients, which has regard to the COVID-19 outbreak.

The following provides a summary of SFC guidance on licensing matters in light of the COVID-19 pandemic and resultant restrictions that may impact the fulfilment of licensing obligations.

HKEx updated its listing guidance including guidance for mineral company listing applicants and on the IPO sponsor due diligence work and listing document disclosure required for distributorship business models

HKEx and the SFC issued a further guidance on results announcements in a follow up to the February Joint Statement in respect of disclosure of financial information and inside information.

Hong Kong’s Limited Partnership Fund Bill was gazetted on 20 March 2020 and will allow funds to be set up as limited partnerships in Hong Kong.

In January 2020, HKEx published its Review of Issuers’ Annual Report Disclosure examining annual reports for the financial year of 2018 and making recommendations accordingly.

COVID-19 has impacted industries across the spectrum and such disruptions have exposed parties to potential liability. Accordingly, we explore whether COVID-19 can constitute a force majeure under an agreement.

A summary of recent SFC and HKEx Listing Committee disciplinary actions in relation to breach of the Listing Rules, breach of the Code on Share Buy-backs and the lifting of UBS’ suspension to act as sponsor.

HKMA and Bank of Thailand published a joint CBDC research project - Project Inthanon-LionRock - to study and develop a Thai baht-Hong Kong dollar cross-border corridor network prototype for fund transfers

Hong Kong’s financial secretary delivered the government’s budget plan, noting the tough economic environment and the implementation of counter-cyclical measures.

SFC published its SFC Regulatory Bulletin (Issue No. 4) to provide an update on its front-loaded approach to regulating market quality and corporate misconduct

HKEx published a consultation paper seeking feedback on a proposal to allow corporate entities to benefit from WVR, which at present can only be held by individuals.

The SFC has published updates on over ten disciplinary actions and related prosecutions between mid-December 2019 and mid-February 2020 regarding compliance failures under the SFO

HKEx and the SFC issued guidance to listed issuers and their auditors on the requirements for financial results publication in light of travel restrictions related to the corona virus.

SFC licensing conditions for managers of funds whose stated investment objective is investing in virtual assets, or intending to invest 10% of a fund’s GAV in virtual assets

HKEx’s research report highlights the potential for development of Mainland-HK ETF market connectivity to boost both markets given demand from Mainland investors for greater access to globalised assets and global investors’ interest in accessing ETFs on Mainland assets.

SFC fined HSBC for its internal control failure to ensure timely detection of any failure of the recording function of its telephone lines which breached Paragraph 3.9(b) of the SFC Code of Conduct.

The Stock Exchange of Hong Kong Limited has issued a Consultation Paper on Codification of General Waivers and Principles relating to IPOs and Listed Issuers and Minor Rule Amendments on 2 August 2019.

The Stock Exchange of Hong Kong published its Consultation Conclusions on Proposed Rule Changes Associated with Backdoor Listing, Continuing Listing Criteria and other Rule Amendments on 26 July 2019.

Due to the increasing number of letters of concern sent in 2017-2018, SFC issued a reminder to directors on their statutory and legal duties in corporate acquisitions and disposals.

The remote onboarding of clients by SFC licensed intermediaries is facilitated by amendments to paragraph 5.1 of the Securities and Futures Commission’s (SFC) Code of Conduct for Persons Licensed by ...

The Stock Exchange of Hong Kong Limited has announced the names of the members of its new Listing Review Committee, the sole review body for decisions of HKEx’s independent Listing Committee as of 6 July 2019.

Due to the increasing number of letters of concern sent in 2017-2018, SFC issued a reminder to directors on their statutory and legal duties in corporate acquisitions and disposals.

The Russia Country Guide has thus been amended to extend its application to Russian international companies. Russian company seeking to list in Hong Kong was only able to list depositary receipts on Hong Kong’s Main Board.

The SFC issued a Circular on 13 June 2019 informing licensed and registered intermediaries of new FAQs setting out further guidance on the regulatory requirements for sales of complex products in Hong Kong.

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As a ‘PAI’, the HKIAC will be able to handle corporate disputes involving parties from Russian special administrative regions which arise from agreements to carry out activities in such regions and relate to the ownership of stocks.

The SFC has reprimanded and imposed record fines totalling HK$ 786.7 million on four investment banks for IPO due diligence failures in their sponsorship of applications to list on the Stock Exchange of Hong Kong.

A total of 33 financial service providers have applied for the virtual banking licences, among them WeLab Holdings Limited, which operates WeLend, an online lending platform in Hong Kong.

Amendments to the Listing Rules of the HKEx took effect on 1 March 2019 changing the documentary requirements for listing applicants and listed companies and making other minor housekeeping amendments.

The SFC made a statement on the regulatory requirements for security token offerings and the risks of investing in virtual assets. Security tokens fall under the definition of “securities” under the SFO.

On 28 January 2019, the SFC, HKEx and the Federation of Share Registrars Limited released a joint consultation paper on a new mechanism for implementing an uncertificated securities market regime in Hong Kong.

Starting from 11 April 2019, the SFC will require licensing applications to be made with new licensing forms, and annual returns and notifications to be submitted electronically through the SFC Online Portal.

The Stock Exchange of Hong Kong has published its consultation conclusions on its proposed revision of the review structure for Listing Committee decisions set out in its 10 August 2018 consultation paper.

The HKEx was the world’s top IPO fundraising market in 2018, for the sixth time in the last ten years. Hong Kong IPOs raised HK$277,848.5 million (US$35,580 million), which is the highest amount since 2010.

Amendments to HK’s Code on Unit Trusts and Mutual Funds took effect 1 January 2019. Retail funds authorised, or the subject of an authorisation application, at 1 January, have 12 months to comply.

Eurocham’s Financial Services Business Council has issued a paper, “Driving Private Financing for Green Industries in Hong Kong – The Catalytic Role of a Green Investment Bank”, advocating the establishment of a green ...

The Stock Exchange of Hong Kong Limited (HKEx) issued its latest review of issuers’ corporate governance practices and updated its guidance material on environmental, social and governance (ESG) reporting.

The GEM Listing Committee of the HKEx has censured L & A International Holdings Limited and five of its directors for granting share options within the black-out period, in breach of GEM Listing Rule 23.05.

The Court of Final Appeal of Hong Kong has allowed the appeal of the SFC against the Market Misconduct Tribunal’s finding that two executives of Asia Telemedia Limited did not engage in insider dealing.

The HKEx proposes a Listing Rule to suspend trading in the securities of listed issuers that publish preliminary results announcements for which the auditor issued a disclaimer on opinion or adverse opinion.

The SFC is keen to develop green finance opportunities arising from Mainland China’s transitioning to a green economy and to position Hong Kong as a connector of green finance flows between the Mainland and ...

The SFC published a consultation paper on 17 August 2018, proposing more guidelines on risk management practices for securities margin financing activities. Responses must be submitted by 18 October 2018.

The latest FAFT standards include expansion of requirements in relation to Politically Exposed Persons (PEPs) that address growing concerns about corruption in both local and cross-border contexts

Amendments to Hong Kong’s Codes on Takeovers and Mergers and Share Buy-backs took effect on 13 July 2018 with the publication by SFC of its Consultation Conclusions on proposed amendments to the Codes.

In July 2018, the Hong Kong Stock Exchange published its Consultation Conclusions on the Review of the Corporate Governance Code and Related Listing Rule to enhance corporate governance standards of issuers.

CCB International Capital Limited has been reprimanded and fined $24m by the SFC for its failure to discharge its duties as a sole sponsor in the listing application of Fujian Dongya Aquatic Products Co., Ltd

The HKEx published a guidance letter in July 2018 setting out relaxations from the Listing Rules which it may allow for listing applicants in the internet technology sector or that have internet-based business models.

HKEx published a Consultation Paper on Backdoor Listing, Continuing Listing Criteria and Other Rule Amendments containing proposals to tighten the Listing Rules on reverse takeovers and the criteria for continued listing

The introduction of the open-ended fund company structure is aimed at encouraging more funds to domicile in Hong Kong and to boost Hong Kong's position as a full service international asset management centre.

The SFC published a Consultation on Proposed Enhancements to the Investor Compensation Regime and Related Legislative Amendments on 27 April 2018. The SFC is hoping to finalise the proposals by mid-2018.

The Listing Rule changes address concerns about prolonged trading suspensions and as detailed in the Exchange’s Consultation Conclusions on Delisting and other Rule Amendments, adopt the majority of proposals

The HKMA published its revised Guideline on Authorization of Virtual Banks intended to encourage virtual banking in Hong Kong. It is one of seven initiatives to move Hong Kong to a “new era of smart banking”.

The Hong Kong Stock Exchange released its Financial Statements Review Programme Report 2017 on 1 June 2018. The report sets out key findings on compliance with accounting standards and disclosure requirements.

On 9 May 2018, the HKMA issued a Circular on Credit Risk Management for Personal Lending Business, allowing AIs to adopt credit risk management techniques and practices enabled by technology

The amendments allow an individual’s share of a portfolio held in an account jointly owned by the individual with non-associates to be aggregated for the purposes of meeting the professional investor threshold

The Regulatory Bulletin gives details of the SFC’s exercise of its powers under the SMLR in order to fulfil its statutory obligation of investor protection in the nine months ended 31 Match 2018.

Amended Listing Rules disallow rights issues, open offers and specific mandate placings, individually or when aggregated within a rolling 12-month period, that result in a cumulative material value dilution

Mr. Brian Ho of the SFC outlined its approach to market regulation in a speech and the SFC reprimanded and fined Citigroup Global Markets Asia Limited HK$57 million for due diligence failures.

On 10 May 2018, HKMA issued a circular setting out details of the highly anticipated three-year Pilot Bond Grant Scheme

The Guidelines will clarify how SFC-licensed and registered entities should comply in an online environment with the obligation to ensure the suitability of client recommendations and solicitations.

The Hong Kong Stock Exchange (the Exchange) published its Consultation Conclusions on a Listing Regime for Companies from Emerging and Innovative Sectors on 24 April 2018 (Consultation Conclusions)

The Guidelines will clarify how SFC-licensed and registered entities should comply in an online environment with the obligation to ensure the suitability of client recommendations and solicitations.

The new daily quotas will take effect on 1 May 2018 and will increase the daily quota for each of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect schemes.

The said deficiencies were especially common for sponsor work done for GEM IPOs. Between October 2013 and December 2017, 44 listing applications were returned or rejected due to concerns raised during the vetting process.

The Addendum arranges for the establishment of a new Listing Policy Panel as a centre point for discussions on listing policy with broader regulatory or market implications.

On 23 February 2018, the Hong Kong Stock Exchange released a Consultation Paper on a Listing Regime for Companies from Emerging and Innovative Sectors, setting out proposals to allow the listing of a broader range of companies.

The SFC has reprimanded and fined Interactive Brokers Hong Kong Limited for breaches of the Code of Conduct due to deficiencies in executing market orders using electronic and algorithmic trading systems.

The most significant change proposed is to increase the voting approval threshold for whitewash waivers from a simple majority of independent votes to 75%.

HKEx published listing decisions which dealt with issuer’s sufficiency of level of operations to warrant continued listing, and listed issuer’s ability to meet the new listing requirements after spin-off.

Changes to HKEx’s Main Board and GEM Listing Rules will take effect on 15 February 2018. The changes will raise listing thresholds and impose more onerous requirements for companies transferring to the Main Board from GEM.

The Hong Kong Stock Exchange published the Conclusions to the New Board Concept Paper (Conclusions) today (Friday 15 December 2017) setting out the steps to be taken to extend the Hong Kong listing regime to allow companies ...

Consultation Paper proposes changes on the declaration and undertaking by directors and supervisors and related matters, listed issuers’ declaration and board resolutions relating to issuance of securities

The Exchange proposes to add to CP A.5.5 a requirement to explain why the INED would be capable of devoting sufficient time to the board if he or she is holding a seventh (or more) listed company directorship.

The SEHK has published a Consultation Paper on Capital Raisings by Listed Issuers to address potential abuse in large, deeply discounted fund raisings and certain share consolidations and subdivisions.

SFC-licensed corporations and SFC-registered banking institutions engaged in internet trading are required to implement 20 baseline requirements to enhance cybersecurity resilience and mitigate hacking risks.

The Revenue (Profits Tax Exemption for Offshore Funds) Ordinance provides tax exemptions to offshore funds. The Inland Revenue (Amendment) (No. 2) Ordinance extended it to offshore private equity funds.

Hong Kong’s Financial Secretary has suggested that new economy companies with weighted voting rights structures may be allowed to list on the Stock Exchange, subject to the imposition of appropriate safeguards.

On 4 October 2017, The Honourable Justice Wong in the Court of First Instance granted leave to Television Broadcasts Limited (TVB) and allowed a judicial review of the Takeovers and Mergers Panel ruling regarding a share buy-back which TVB announced in early 2017.

On 29 September 2017, the SFC launched the SFC Regulatory Sandbox & the HKMA also announced several initiatives that prepare Hong Kong to enter a New Era of Smart Banking, including the Enhanced Fintech Sandbox

The HKEx has published a Consultation Paper on Delisting and Other Rule Amendments. It proposes improvements to the delisting framework under the Listing Rules to address prolonged suspensions of trading.

In August 2017, the SFC publicly censured and imposed a 24-month cold shoulder order against Mr Yeung Wing Yee for breaching the mandatory general offer obligation under Rule 26.1 of Takeovers Code.

In September 2017, Hong Kong’s SFC and Stock Exchange released their Joint Consultation Conclusions on Proposed Enhancements to the Exchange’s Decision-Making and Governance Structure for Listing Regulation

The Securities and Futures Commission published consultation conclusions on the regulatory capital regime for LCs engaged in over-the-counter derivatives activities and other proposed changes to the FRR.

China’s Belt and Road initiative aims to promote infrastructure development in 69 countries, which taken together account for approximately 4.4 billion people or 65% of the world’s population.

The Companies (Amendment) Bill 2017 (“Bill”) was published in the Gazette on 23 June 2017. Under the Bill, Hong Kong companies will be required to disclose their significant controllers (beneficial owners).

The consultation follows the approval of the Securities and Futures (Amendment) Bill 2016, which introduced the new structure to enable investment funds to be established in Hong Kong in corporate form

In January 2017, the Hong Kong Stock Exchange released its “Review of Disclosure in Issuers’ Annual Reports to Monitor Rule Compliance”, as part of it monitoring of issuers’ compliance with the Listing Rules

On 10 May 2017, the Takeovers Panel ruled that a waiver of the general offer obligation (Whitewash Waiver) should be granted, subject to conditions, in relation to a share buy-back offer announced by TVB.

Anti-Money Laundering and Counter-Terrorist Financing Ordinance will require designated non-financial businesses and professions to observe statutory customer due diligence and record-keeping requirements

BVI’s Beneficial Ownership Secure Search System Act 2017 came into force on 30 June 2017 to establish a search system facilitating the retrieval of beneficial owner information for corporate & legal entities

The SFC issued a circular providing guidance for existing licensed corporations and individuals seeking to be licensed for Type 9 regulated activity (asset management) under the Securities and Futures Ordinance

The SFC has issued a circular on responsible officers and substantial shareholders, stating that it is not acceptable to hire ROs in name only; they must in fact supervise the licensed corporation’s business.

The SEHK has published a Consultation Paper on the Review of the Growth Enterprise Market and Changes to the GEM and Main Board Listing Rules. The SEHK proposes to impose higher entry criteria for both boards.

The SFC issued a statement setting out factors to be considered when reviewing the proposed listing of infrastructure project companies in Hong Kong in order to maintain the overall quality of the market.

The HKEx published its New Board Concept Paper setting out proposals for the establishment of a New Board, separate from the Main Board and the GEM, to open Hong Kong’s capital markets to New Economy Companies.

The People’s Bank of China and the Hong Kong Monetary Authority made a joint announcement approving the establishment of mutual access between the Hong Kong bond market and Mainland China's bond market.

In its newsletter, Enforcement Reporter, the SFC discussed director and senior executive liabilities and senior management accountability in listed companies, particularly in relation to fraud and misfeasance.

The Supplemental Circular on Leveraged and Inverse Products dated 23 December 2016 details the requirements under which the SFC would consider authorising leveraged and inverse products for public offering.

Those who pay for an existing licensed corporation as a "backdoor licence" may not avoid the responsibilities and liabilities. Anyone involved in the management of licensed corporations is liable for breaches.

The SFC has Published a Statement on Recent Applications to List on GEM by way of Placing and Reminds Listing Applicants, Placing Agents and Sponsors of the Requirement for an Open Market

SFC Publishes Consultation on Amendments to the Professional Investor Rules expanding the definition of Corporate Professional Investors and the Rules’ evidential requirements

European Chamber of Commerce Publishes Position Paper on Hong Kong Fintech including Key Recommendations on Fintech Development and Encouraging Collaboration Between the European Commission and HK Government

SFC and Exchange Joint Statement and SFC Guideline Imposes New Obligations on Listing Applicants, Sponsors, Underwriters and Placing Agents of GEM IPOs to Address Price Volatility Concerns

Hong Kong was the world’s largest IPO market in 2016 raising US$25.1 billion in 120 IPOs. Listed debt turnover surged 126% compared to 2015 despite only a small increase in the number of debt issues

SFC Issues New Guidance on compliance with licensed intermediaries’ obligation to ensure the suitability of investment products for clients

SFC Circular Introduces New Measures to Increase the Accountability of Licensed Corporations’ Senior Management and Imposes New Reporting Requirements

SFC Consultation Paper Proposes Tightening Regulation of Hong Kong Fund Managers and Increasing their Point-of-Sale Disclosure Obligations – comments should be submitted by 17.02.2017

New HKEx Guidance Letter GL89-16 clarifies its “controlling shareholder” definition in light of the “ownership continuity and control” requirement and controlling shareholders’ post-listing obligations.

The Securities and Futures Commission and the Stock Exchange of Hong Kong have said they will pay closer attention to rights issues and open offers that significantly dilute minority interests.

Shenzhen-Hong Kong Stock Connect (Shenzhen Connect) launches on Monday, 5 December 2016. Modelled on the Shanghai-Hong Kong Stock Connect scheme (Shanghai Connect) that has been in place since November 2014, ...

The consultation period for the Joint Consultation Paper published by the Hong Kong Securities and Futures Commission and the Stock Exchange of Hong Kong Limited closed on Friday, 18 November.

SFC Reprimands and Fines HSBC HK$2.5 Million for Breaches of Reportable Position Limit for HSCEI Futures and Options and Inadequate Measures to Ensure Compliance

The China Securities Regulatory Commission and the Securities and Futures Commission published a joint announcement approving, in principle, the establishment of the Shenzhen-Hong Kong Stock Connect scheme.

The Securities and Futures Commission has published its Fund Management Activities Survey for 2015. This annual survey covers licensed corporations, registered institutions and insurance companies in Hong Kong.

The Russia - Hong Kong agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income signed on 18 January 2016 came into force on 29th of July 2016.

CEO of the Securities and Futures Commission and chairman of the International Organization of Securities Commissions Ashley Alder addressed the Hedge Fund Standards Board Institutional Investors Roundtable.

SFC guidance on collective investment schemes involving real property.

The SFC took a number of disciplinary actions this quarter against companies such as Alibaba Group Holdings, China New Way Investment, Bank of America, National Association and Merrill Lynch International.

The Securities and Futures Commission and the HK Stock Exchange have issued a joint consultation paper on proposed changes to the decision-making and governance structure of listing regulation.

The Hong Kong Stock Exchange (the Exchange or SEHK) updated its Guidance Letter GL79-14 to add guidance for offshore funds applying to list under Chapter 20 of the Hong Kong Listing Rules.

HKEx publishes Guidance Letter HKEx-GL68-13A on IPO vetting and suitability for listing. It focuses on "shell" companies and sponsors' need to be aware of all material issues relevant to an applicant's suitability for listing.

Memorandum Of Understanding Entered Into Between Hong Kong International Arbitration Centre And The Russian Arbitration Association

The Securities and Futures Commission’s Takeovers Panel has ruled that Alibaba Group Holding Limited breached the Takeovers Code due to “Special Deal”.

China’s NDRC to Simplify Outbound Investment Rules as Chinese companies continue to invest heavily overseas

Hong Kong Stock Exchange Publishes Guidance on Large Scale Bonus Issues

The Hong Kong Stock Exchange has Published its Reasons for Rejection and Return of Listing Applications in 2015

The Hong Kong High Court has interpreted s300 SFO to over insider dealing in securities listed overseas in landmark case

Hong Kong SFAT Reprimands and Fines Moody’s HK$11 million over Red Flags Report on Chinese Companies

The Hong Kong Stock Exchange has published guidance for listed companies on handling allegations of fraud or material accounting or governance irregularities

The SFC has started market misconduct proceedings against two listed companies and their senior executives for alleged breaches of inside information disclosure requirements.

Hong Kong’s SFC has issued Principles of Responsible Ownership for Asset Managers and Institutional Investors Holding Shares in Hong Kong Listed Companies

A new open-ended fund company structure for Hong Kong funds will be introduced under the Securities and Futures (Amendment) Bill 2016

Amendments to Hong Kong’s Professional Investor Regime Take Effect on 25 March 2016. Changes to the SFC’s Code of Conduct will increase protection for Individual and Corporate Professional Investors

The Hong Kong SFC has published a circular setting out the requirements for SFC authorisation of Leveraged and Inverse Products structured as Exchange Traded Funds for public offering.

Hong Kong’s SFC has Published Revised Short Position Reporting Rules Extending the Scope of the Short Position Reporting Requirement

Hong Kong’s regulators have published drafts of the new rules introducing mandatory clearing, and expanding the mandatory reporting obligations, for OTC derivatives

Third parties to a contract now have a right to enforce contractual terms in certain circumstances under the Contracts (Rights of Third Parties) Ordinance which came into force on 1 January 2016

The Hong Kong Stock Exchange has published a Listing Document Simplification Guide to encourage clearer, more succinct listing documents

Financial Services Development Council’s report sets out proposals for Hong Kong to become the leading fund distribution centre in the Asia Pacific Region in the medium term, and globally in the longer term

On 21 January 2016, the Hong Kong Stock Exchange announced its Strategic Plan 2016-2018. The plan focuses on Hong Kong as the gateway connecting China with the rest of the world

Hong Kong and Russia signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income on 18 January 2016.

Comply or Explain ESG Reporting for Hong Kong Listed Companies for Financial Years Starting from 1 January 2016

HKEx has recognised Russia as an acceptable jurisdiction of incorporation for listing applicants and has issued a Country Guide setting out how Russian companies can meet key shareholder protection standards

The SFC is consulting on changes to the Guidelines for Regulation of Automated Trading Services

SFC Consults on Expanding Short Position Reporting Requirement.

HKEx Targets Backdoor Listings in Application of Cash Company Rules to Large Scale Fundraisings

Suitability Requirement to Become Mandatory Provision of Hong Kong Client Agreements under SFC Code Amendments

Exchange Provides Further Guidance on Issuers’ Significant Distributions of Unlisted Assets

HKEx Approves India as Acceptable Jurisdiction of Incorporation for Listing Applicants

Law Reform Proposed to Allow Third Party Funding for Hong Kong Arbitration

New Exchange Guidance on Continuing Obligations of Issuers and Guarantors of Listed Debt Securities

Takeovers Panel Upholds Waiver of Mandatory Offer Obligation for China Oriental

HKEx Proposes “London-Hong Kong Connect” to Link Commodities Market

SFC Launches Pilot Initiatives to Fast Track Fund Authorisation Process

Hong Kong Stock Exchange Drops Weighted Voting Rights Proposals following SFC Objections ...

HKEx Publishes Consultation Conclusions on Volatility Control Mechanism and Closing Auction Session

Hong Kong Stock Exchange proposes introduction of “comply or explain” ESG reporting ...

The Stock Exchange of Hong Kong Limited has published guidance letter HKEx-GL81-151 to encourage listing applicants to consider using a Mixed Media Offer (MMO) for their listing on the Hong Kong Stock Exchange.

Ernst & Young (EY) has discontinued its appeal against the May 2014 order of Hong Kong's Court of First Instance requiring it to hand over to the Securities and Futures Commission (the SFC) audit working papers...

The Hong Kong Securities and Futures Commission (the SFC) has reprimanded and fined Nomura International (Hong Kong) Limited (Nomura Hong Kong) HK$4.5 million for failing to immediately report misconduct...

The Securities and Futures Commission (SFC) has started proceedings for the first time for breach of listed companies' obligation to announce inside information as soon as reasonably practicable under Part...

Hong Kong, Macau and Taiwanese audit firms have been exempted from new rules which prevent foreign auditors from auditing Mainland Chinese companies unless they team up with a Mainland Chinese accounting firm.

The Stock Exchange of Hong Kong Limited (the Exchange) has published guidance letter HKEx-GL80-151 (the Guidance Letter) providing guidance on the Listing Rules' requirements for issues of convertible securities...

The much anticipated Mainland-Hong Kong Mutual Recognition of Funds Initiative (MRF) will be launched on 1 July 2015 with a total investment quota of RMB 600 billion following a Joint Announcement made by ...

The Hong Kong Securities and Futures Commission (SFC) has published a circular1 reminding intermediaries of the requirements in relation to Know-Your-Client (KYC) and account opening procedures...

The Hong Kong Stock Exchange (the Exchange) has published its Consultation Conclusions1 on amendments to the Listing Rules to reflect changes in the requirements for disclosure of financial information...

The Hong Kong Exchanges and Clearing Limited (the Exchange) has published two listing decisions in 2015: Listing Decision HKEx-LD85-20151 which applied the Listing Rules' 12-month lock-up restriction on ...

The Securities and Futures Commission's (the SFC's) latest Corporate Regulation Newsletter (Issue No. 2 of April 2015)1 includes guidance on: Aspects of listed companies' obligation to disclose inside ...

Having experimented with the Shanghai Free Trade Zone (SFTZ) for more than a year, in December 2014, China's Premier Li Keqiang approved three new Free Trade Zones (FTZs) in Guangdong, Fujian and Tianjin...

On 20 March, 2015, the Hong Kong Court of Final Appeal (the CFA) ruled1 in favour of Pacific Sun Advisors Limited (Pacific Sun) and its director and CEO, Mr. Andrew Mantel. The CFA affirmed the Magistrates' ...

Rule changes to allow fund managers holding A shares through special accounts to settle A share trades after execution will come into effect on 30 March 2015. The move comes in response to complaints about...

The Hong Kong Stock Exchange Limited (Exchange) will issue its conclusions on its August 2014 Concept Paper on Weighted Voting Rights (see archive) (Concept Paper) in due course, according to Mr. Ashley...

A Briefing Paper1 proposing to extend the current profits tax exemption for offshore funds to offshore private equity (PE) funds was tabled before the Legislative Council Panel on Financial Affairs by ...

The Hong Kong Stock Exchange (the Exchange) is consulting on proposals to introduce a Volatility Control Mechanism (VCM) in the securities and derivatives markets and to re-introduce a closing auction session...

The Hong Kong Securities and Futures Commission (SFC) has banned the former chief executive officer of Ping An of China Securities (Hong Kong) Company Limited (Ping An), Mr. He Zhi Hua (He), for twelve months...

The Hong Kong Stock Exchange (the Exchange) has announced that short selling of certain Shanghai-listed A shares through the Shanghai-Hong Kong Stock Connect programme (Stock Connect) is allowed from Monday...

United States Securities and Exchange Commission (SEC) sanctions against the Big Four accounting firms have been imposed as part of the settlement of a dispute between the SEC and the Chinese affiliates of...

The Bank of Russia will sign the IOSCO Multilateral Memorandum of Understanding (IOSCO MMoU) in what represents a major step forward for the listing of Russian companies on the Stock Exchange of Hong Kong...

A draft of China's Foreign Investment Law (the Draft FIL) published by the Ministry of Commerce (MOFCOM) on 19 January 2015 proposes major changes to the regulation of foreign investment in China. The...

An extension of the current stamp duty exemption to transfers of shares or units of all Exchange Traded Funds (ETFs) listed on the Hong Kong Stock Exchange (the Exchange) will take effect on 13 February 2015...

The updates to both Guidance Letters relate to disclosure in IPO prospectuses of material changes in financial, operational and/or trading position after the trading record period. GL41 also includes a new...

A year of firsts in many ways, 2014 saw Hong Kong markets continue to reap the benefits of their first-mover advantage created by Mainland China experimenting with policy changes in Hong Kong first before...

The Hong Kong Stock Exchange's Listing Decision HKEx-LD85-20151 (the Listing Decision) required a shareholder to comply with the Listing Rules' restrictions on controlling shareholders disposing of their...

Moody's Investors Service Hong Kong Limited (Moody's) has appealed the Securities and Futures Commission's (SFC's) November decision that the agency's July 2011 publication of a report, "Red Flags For Emerging-Market...

Hong Kong's Securities and Future Commission (SFC) has begun a month-long consultation1 on proposed amendments to the Securities and Futures Ordinance (SFO) to allow the provision of greater supervisory assistance...

A scheme providing for the mutual recognition of funds authorised in Hong Kong and the Mainland is in its final stages, according to a speech given by Alexa Lam, deputy chief executive officer of Hong Kong's...

The Securities and Futures Commission (SFC) has commenced proceedings against Mr. Andrew Left, a US citizen and head of Citron Research, for potential market misconduct involved in the publication of a...

On 18 December 2014, the Legislative Council passed the Employment (Amendment) Bill 2014, introducing statutory paternity leave for male employees in Hong Kong under new Part IIIA of the Hong Kong Employment...

In July 2014, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) published a consultation paper setting out the detailed proposals for the mandatory reporting and record...

A recent Hong Kong case acts as a reminder of the importance of following the correct formalities for the execution of documents, and raises important issues in relation to the effectiveness of virtual signing...

On 4th November 2014, China's National Development and Reform Commission (NDRC) released a revised draft of the Catalogue for Guidance on Foreign Investment in Industries (Catalogue), in conjunction with the Ministry...

The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) announced on 10 November 2014 that Shanghai-Hong Kong Stock Connect, the pilot programme to allow mutual...

Hong Kong Exchanges and Clearing limited (HKEx) has updated Guidance Letter GL58-13 and Frequently Asked Question Series 23 (FAQ 23) to refer to Hong Kong Standard on Investment Circular Reporting...

The Stock Exchange of Hong Kong (the Exchange) has published a consultation paper (see archive) on proposed amendments to the Listing Rules to reflect changes in the requirements for disclosure of financial...

The Securities and Futures Commission (SFC) has published its consultation conclusions (Consultation Conclusions) on proposed amendments to intermediaries' obligations in relation to professional investors...

The latest issue of the SFC's Takeovers Bulletin (the Bulletin) published on 30 September: clarifies that where an offer is unconditional from the outset, associates who are not concert parties of the offeror need...

The Stock Exchange of Hong Kong (the Exchange) has published a Concept Paper on Weighted Voting Rights seeking views on whether companies with governance structures giving certain persons voting power or other...

The Hong Kong Stock Exchange (the Exchange) announced on Friday, 9 September 2014 that it will stop carrying out an Initial 3-Day Check of IPO Application Proofs with effect from 1 October 2014. This is due...

The Securities and Futures Commission (SFC) has announced that proposed legislative amendments to make explicit that sponsors may be subject to criminal and civil liability for deficiencies in IPO prospectuses...

The Takeovers Bulletin (see archive) published by the Securities and Futures Commission (SFC) in June 2014 sets out the Executive's new approach to commenting on documents which will focus on substantive Code issues...

In April 2013, the Financial Services and the Treasury Bureau (FSTB) launched a three-month public consultation (the Consultation) on proposals to improve the corporate insolvency and winding-up provisions...

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have published a consultation paper (see archive) on the proposed mandatory reporting and record keeping obligations being...

On 18 June, 2014 the Financial Services Development Council (FSDC) released a research report titled "Positioning Hong Kong as an International IPO Centre of Choice" (the Report) setting out key areas for...

The Financial Services and the Treasury Bureau (the FSTB) has published a consultation paper (Consultation Paper) setting out proposals to enhance the independence of the regulatory regime governing auditors...

The Takeovers and Mergers Panel (the Panel) has ruled that SouthGobi Resources Limited (SouthGobi) should be considered a 'public company in Hong Kong' under the Codes on Takeovers and Mergers and Share Buy-backs...

The Securities and Futures Commission (SFC) is proposing to add two more categories of exemptions from the disclosure-of-interests requirement under Part XV of the Securities and Futures Ordinance (SFO) (Part XV).

The Licensing Department of the Securities and Futures Commission (the SFC) has issued a circular (see archive) to licensed corporations containing a non-exhaustive list of self-assessment questions to which...

The Stock Exchange of Hong Kong Limited (the Exchange) has published a consultation paper (Consultation Paper) (see archive) on proposed changes to the internal controls section of the Corporate Governance Code...

On 21 April 2014, the Accounting Division of the Ministry of Finance (MOF) released for consultation its provisional regulations on "cross-border audit services" (the Provisional Regulations) accompanied by the...

The Hong Kong Stock Exchange (the Exchange) has published guidance letter HKEx-GL78-14 , which reflects the Exchange's current practice in application of the reverse takeover (RTO) requirements under the Listing...

The Stock Exchange of Hong Kong (the Exchange) has issued Guidance Letter HKEx-GL77-14 (the Letter), providing guidance on disclosure requirements and other requirements in relation to the use of...

The Securities and Futures Commission (SFC) has introduced a new online system1 to simplify the submission process for dealing disclosures under Rule 22 of the Code on Takeovers and Mergers (Takeovers Code)...

The Court of First Instance (the Court) has ordered Ernst & Young (EY) to produce to the Securities and Futures Commission (SFC) specified accounting records relating to its work as the reporting accountant and...

The Securities and Futures Commission (SFC) has made two announcements in relation to the failings of, and penalties imposed, on Deutsche Bank Aktiengesellschaft (Deutsche Bank), and ICBC International Capital...

The Stock Exchange of Hong Kong (SEHK) has published further information in relation to Shanghai-Hong Kong Stock Connect (Stock Connect), the proposed mutual market access programme which will allow investors in...

The Hong Kong Stock Exchange (the Exchange) has published guidance letter HKEx-GL76-14 (see archive), which provides information on the disclosure in opinion letters prepared by independent financial advisers...

The Securities and Futures Commission (SFC) issued a notice (see archive) on 7 May 2014 to remind parties carrying out crowd-funding activities of the potential securities regulatory implications and liabilities...

Hong Kong Exchanges and Clearing Limited (HKEx) announced yesterday, 22 April 2014, that it plans to launch its commodities business with four futures contracts that will be traded in its derivatives market.

The Financial Services and the Treasury Bureau (FSTB) published the Open-ended Fund Companies Consultation Paper (see archive) (Consultation Paper) and a press release (see archive) on 20 March 2014 setting...

The Exchange has published its second report (see archive) on findings and recommendations from a review of disclosure in issuers' annual reports issued for the financial years ended between December 2012 and...

The China Securities Regulatory Commission (CSRC) and Hong Kong's Securities and Futures Commission (SFC) published a joint announcement (see archive) on 10 April 2014 of their approval, in principle, of a pilot...

The Exchange has published guidance letter HKEx-GL75-14 (see archive) which supersedes Listing Decision HKEx-LD54-13 (see archive) which has been withdrawn. The guidance letter provides guidance in cases where...

The Stock Exchange of Hong Kong (the Exchange) has published amendments to the Listing Rules which will take effect on 1 July 2014. The amendments implement changes to the rules on connected transactions in...

The Hong Kong Stock Exchange (the Exchange) has published a news release (see archive) and Frequently-Asked-Questions (see archive) (FAQ) in relation to the Listing Rule amendments to introduce new headline...

The Hong Kong Stock Exchange (the Exchange) has confirmed that it will continue to conduct an initial 3-day check of application proofs from 1 April to 30 September 2014 to give practitioners more time to become...

The Securities and Futures Commission (SFC) is consulting the public on amending the Code of Conduct for Persons Licensed by or Registered with the SFC (Code of Conduct) to regulate operators of alternative...

A 141-page consultation paper (Consultation Paper) (see archive) has been jointly published by the Financial Services and the Treasury Bureau (FSTB), the Hong Kong Monetary Authority (HKMA), the Securities and...

The Hong Kong Stock Exchange (the Exchange) has published a news release (see archive) providing information on the new listing applications it has received since the new regulatory regime for sponsors came...

The Securities and Futures Commission (SFC) is conducting a consultation on allowing Real Estate Investment Trusts (REITs) greater flexibility to invest in properties under development and financial instruments...

The new Companies Ordinance of the laws of Hong Kong (Cap. 622) (New Companies Ordinance) came into force on 3 March 2014. The Exchange has published Listing Rule Amendments and Frequently-Asked-Questions...

The New Companies Ordinance (Cap. 622) (the New CO) will come into force on 3 March 2014. Following commencement of the New CO, the current Companies Ordinance (Cap. 32) (the Old CO) will be retitled as the...

The Old CO provides that where a scheme is proposed between a company and its members or creditors (or any class of them), the court may order a meeting of the members or creditors (or relevant class). If a...

The Old CO allows a listed company to send a summary financial report to its members and debenture holders in place of the accounts, directors' and auditors' reports normally required to be sent, provided it...

To remove uncertainty and dispense with redundant items, the following changes have been made under the New CO: a charge on an aircraft or any share in an aircraft is expressly made registrable;a charge on...

Under the Old CO, a private company (other than a company which is a member of a corporate group and certain companies specifically excluded, such as insurance and stock-broking companies) may, with the...

The New CO adopts a mandatory system of no-par for all Hong Kong companies with a share capital and abolishes the concept of par (or nominal) value of shares. On the commencement of the New CO, a Hong Kong...

The New CO codifies a director's duty to exercise reasonable care, skill and diligence. Section 465 of the New CO requires a director to exercise reasonable care, skill and diligence, meaning the care, skill...

On 28 January 2014, the Exchange published a press release in relation to the censure of a listed company (Company) and its directors for breach of Rule 13.09 of the Listing Rules as previously in force prior to...

The Hong Kong Stock Exchange (the Exchange) has published Guidance Letter GL72-14 (see archive) providing guidance on disclosure in the "Applicable Laws and Regulations" section of IPO listing documents. This...

On 24 January 2014, the Hong Kong Stock Exchange published the following new and updated Guidance Letters: Disclosure requirements for IPO cases - Disclosure of material changes in financial, operational...

It has been a year since the statutory regime for disclosure of inside information came into effect under Part XIVA of the Securities and Futures Ordinance (SFO), which was implemented on 1 January 2013. The...

The Hong Kong Stock Exchange has published country guides for twenty of the twenty-one overseas jurisdictions which the Exchange is willing to accept as a listing applicant's jurisdiction of incorporation.

The SFO requirement for listed companies to make timely and accurate disclosure of price sensitive information (i.e. inside information) is illustrated in a number of recent regulatory enforcement actions.

Hong Kong Stock Exchange has published guidance letter on suitability for listing and listing decision on the suitability for listing of applicants which had conducted business in countries subject to sanctions

On 8 October 2013, the SFC published FAQs on the new regime on the regulation of sponsors under the SFC's new paragraph 17 of the Code of Conduct for Persons Licensed by or Registered with the SFC

SFC has published in its Takeovers Bulletin information relating to dealing disclosures under Rule 22 of the Takeovers Code and Rule 10.9’s application to unaudited quarterly results published during an offer period

The Stock Exchange of Hong Kong (the Exchange) and the Securities and Futures Commission (SFC) have updated their joint policy statement regarding the listing of overseas companies (Joint Statement).

free download of 750+ page hong kong sponsor due diligence guidelines, coordinated by charltons, developed as an initiative of hong kong sponsors to promote standards in the conduct of due diligence for new...

The Hong Kong Stock Exchange has published guidance letter HKEx-GL66-1 with regard to the criteria for resumption for long suspended companies.

The SFC issued Guidelines on the application of the CPSS-IOSCO Principles for Financial Market Infrastructures regarding its expectations of the implementation of the principles by recognised clearing houses.

The Stock Exchange of Hong Kong Limited (the Exchange) has published guidance letter HKEx-GL55-13 (the Guidance Letter) which provides guidance on documentary requirements and administrative matters applicable...

Exchange has published guidance letters on confirmations on accountants' reports, financial information and profit forecasts and on management discussion and analysis on financial information in listing documents

Hong Kong Stock Exchange has published a guidance letter setting out the administrative practices on accepting early filings of listing applications and financial information requirements in Application Proof.

The Stock Exchange of Hong Kong Limited (the Exchange) has issued guidance letter HKEx-GL57-13 (see archive) (the Guidance Letter) relating to logistical arrangements for the publication of the Advanced Proofs 1...

Hong Kong Stock Exchange has updated Guidance Letter GL22-10 regarding pre-conditions for a waiver from the financial standards requirements for new applicant Mineral Companies under Main Board Rule 18.04.

The SFC has published a Takeovers Bulletin on (1) "Disqualifying Transactions" under the Whitewash Guidance Note and (2) application of Rule 20.1(B) of the Takeovers Code to share repurchases by partial offer

Hong Kong Stock Exchange has published FAQs in relation to the Listing Rule changes to be implemented in connection with the SFC’s new regime on the regulation of sponsors to come into effect on 1 October 2013.

Hong Kong Stock Exchange has published rule changes to complement the SFC’s new regime on the regulation of sponsors under paragraph 17 of the Code of Conduct for Persons Licensed by or Registered with the SFC.

The Hong Kong Stock Exchange has withdrawn Listing Decision LD45-3 (on conditions for waiver from strict compliance with GEM Rules 7.03(1) & 11.10) and incorporated its conclusions into Guidance Letter GL25-11

Hong Kong Law Newsletter June 2013. Listing Decision Published On Whether Deteriorating Financial Performance After Track Record Period Rendered Applicant Unsuitable

The Hong Kong Stock Exchange has published three listing decisions concerning rights issues and spin-offs

CFA has set a precedent that allows the SFC to enter into civil proceedings under s213 SFO and criminal market misconduct proceedings under Part XIV SFO with respect to the same incidence of market misconduct.

SFC has published a consultation paper on proposed amendments to the professional investor regime and to the client agreement requirements in relation to offering investment products to professional investors

The Hong Kong Stock Exchange has published Guidance letter GL54-13 providing guidance on the "Risk Factors" section of listing documents.

Hong Kong Stock Exchange has published 2 consultation papers on its connected transaction rules, with the main paper reviewing the current model for regulating connected transactions conducted by listed issuers

Hong Kong Stock Exchange recently published FAQs in relation to the listing rules changes implemented in connection with the statutory regime for disclosure of inside information under new Part XIVA of the SFO.

The SFC has published FAQs to clarify the meaning of and assist compliance with the Chinese walls requirement under section 4.3 of the Corporate Finance Adviser Code of Conduct.

The Hong Kong Stock Exchange has released three listing decisions in relation to reverse takeovers.

The Exchange has published its first report on the findings and recommendations from a review of all listed issuers' annual reports issued for the financial year ended between December 2011 and November 2012

SFC publishes FAQ on statutory inside information disclosure regime and the Exchange publicly censures listed issuer for non-disclosure of price sensitive information under previous listing rule regime

The Hong Kong Stock Exchange published three listing decisions in March 2013 in relation to convertible note/bond issues.

The Exchange has published guidance letter concerning disclosures expected in mineral company listing documents and issues raised by regulators in their vetting of previous mineral company listing applications

Hong Kong Stock Exchange has released its consultation conclusions on its proposed model for allowing the publication of inside information announcements during trading hours subject to a short trading halts

The Financial Services and the Treasury Bureau, HKMA and SFC jointly submitted a policy brief to Legco to update it on the progress in developing a full-fledged regulatory regime for OTC derivative transactions

The Exchange has published a guidance letter to remind listing applicants that no benefits are allowed to be given to Cornerstone Investors, except for a guaranteed allocation of shares at the IPO price.

to convert its entire B shares into H shares and list the H shares on the Main Board of the Exchange by way of introduction

The Hong Kong Stock Exchange has published a guidance letter and listing decisions in relation to mineral companies and issues under Chapter 18 of the Listing Rules

The Hong Kong Stock Exchange published Listing Decision HKEx-LD48-2013 on 21 January 2013, providing a detailed analysis of the reasons for its return of certain listing applications

On 14 December 2012, the Stock Exchange of Hong Kong (the Exchange) updated its 2005 listing decision (HKEx - LD48-4) (the Listing Decision) regarding the circumstances in which the Exchange will allow a new...

The Securities and Futures Commission (SFC) has published a reminder to listed companies to make all necessary price sensitive information (PSI) announcements in the run up to 1 January 2013 to ensure that their...

The Stock Exchange of Hong Kong Limited (Exchange) published on 30 November 2012 its consultation conclusions (Consultation Conclusions) on the amendments to the Listing Rules (Rules) of the Main Board (MB) and...

The Personal Data (Privacy) (Amendment) Ordinance 2012 (Amendment Ordinance) was introduced to enhance the protection of personal data privacy of individuals offered under the Personal Data (Privacy) Ordinance...

The SFC announced on 29 November that its consultation service for listed corporations on their obligations under the new statutory regime for disclosure of price sensitive information (PSI) would commence on 1...

The Securities and Futures Commission (SFC) announced on 20 November 2012 that it has banned Mr. Wong Tang Chung, a former responsible officer and executive director of Mega Capital (Asia) Company Limited (Mega...

Amendments to the definitions of specified Futures Exchanges (SFEs) and specified Stock Exchanges (SSEs) in Parts 2 and 3 to Schedule 1 of the Securities and Futures Ordinance (SFO) took effect on 18 July 2012...

In October 2012, the Stock Exchange of Hong Kong (the Exchange) published a guidance letter (HKEx-GL43-12) (the Guidance Letter) to consolidate its past listing decisions on pre-IPO investments. Guidance letter...

The Financial Services and Treasury Bureau (FSTB) and the Companies Registry are currently consulting on the creation of new subsidiary legislation for the implementation of the new Companies Ordinance, which was...

The first dual counter (DC) security, Harvest MSCI China A Index Exchange Traded Fund (Harvest ETF), listed on the Stock Exchange of Hong Kong Limited (the Exchange) on 12 October 2012. A DC security offers two...

In September 2012, the Stock Exchange of Hong Kong (the Exchange) published a listing decision (HKEx-LD37-2012) (the Listing Decision) regarding whether a GEM listing applicant's deteriorating financial performance...

The Australasian Joint Ore Reserves Committee (JORC) released for public comment the exposure draft of the JORC Code 2012 (the JORC Code) on 18 September 2012. The exposure draft was prepared following the code review...

The Stock Exchange of Hong Kong (SEHK or the Exchange) published a consultation paper (Consultation Paper) on 7 September 2012 to seek comments on its proposed amendments to the Corporate Governance Code...

In August 2012, the Stock Exchange of Hong Kong (the Exchange) updated its 2005 listing decision (HKEx-LD43-3) (the Listing Decision) regarding the suitability for listing of PRC businesses using the so-called...

The Stock Exchange of Hong Kong (SEHK or Exchange) published its consultation conclusions (the Consultation Conclusions) on its proposed Environmental, Social and Governance Reporting Guide (the ESG Guide) on...

The global financial crisis in late 2008 highlighted the structural deficiencies in the over-the-counter (OTC) derivatives market, and the systemic risk it poses for the wider market and economy. In the wake of...

Following the enactment of the Securities and Futures (Amendment) Ordinance 2012 (the Amendment Ordinance), Hong Kong Exchanges and Clearing Limited (the Exchange) has published a consultation paper (Consultation...

Hong Kong Exchanges and Clearing Limited (the Exchange) has published a consultation paper (Consultation Paper) on proposals to allow the release of price sensitive information (PSI) during trading hours subject...

In May 2012, the Securities and Futures Commission (SFC) published its consultation conclusions (Consultation Conclusions) on the proposals set out in its November 2011 consultation paper...

In a letter published on 10 May 2012, the Stock Exchange of Hong Kong Limited (the Exchange) reminds listed issuers of their continuous disclosure obligation in light of enquiries regarding the handling of market...

The Stock Exchange of Hong Kong (Exchange) published on 8 May 2012 a guidance letter (HKEx-GL35-12) on profit forecast in the IPO process to provide guidance and clarification on the following areas: the difference...

The Securities and Futures Commission (SFC) published a consultation paper (Consultation Paper) in May 2012 to seek views and comments on its proposals concerning the conduct of sponsors in meeting...

The new statutory regime governing listed corporations' (corporations) disclosure of price sensitive information (referred to in the new legislation as "inside information") (PSI) will come into effect on 1 January...

Hong Kong Exchanges and Clearing Limited (HKEx) has issued a new guidance letter HKEx-GL34-12 (Guidance Letter) in relation to the disclosure of "hard" underwriting arrangements in listing documents. Such...

New statutory customer due diligence (CDD) and record-keeping obligations for financial institutions were implemented by the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance...

In April 2012, the Stock Exchange of Hong Kong Limited (Exchange) issued a guidance letter (HKEx-GL33-12) (Guidance Letter) on the disclosure of the intended use of proceeds by new applicants in listing documents...

On 20 April, The Stock Exchange of Hong Kong Limited (HKEx or the Exchange) published a plain language guide to the requirements for connected transactions (including continuing connected transactions) set out in the...

The Stock Exchange of Hong Kong (Exchange) published on 28 March 2012 a guidance letter (HKEx-GL32-12) on the accounting and disclosure requirements for subsidiaries and businesses acquired or agreed/proposed to...

On 23 March 2012, the Securities and Futures Commission (SFC) released its consultation conclusions (Conclusions) on the amendments to the Codes on Takeovers and Mergers and Share Repurchases (the Takeovers Code)...

On 10 February 2012, the Securities and Futures Commission (SFC) published its Conclusions to the Further Consultation on the Securities and Futures (Short Position Reporting) Rules (the Conclusions). The Conclusions...

On 29 February 2012, the Stock Exchange of Hong Kong (HKEx) published two listing decisions in relation to rights issues. The first confirmed that a PRC issuer's issue of rights shares under a general mandate was...

The Exchange published an updated guidance letter (HKEx-GL25-11) on 10 November 2011 setting out revised conditions for waivers from strict compliance with the requirement to include three years' financial statements...

The Hong Kong Stock Exchange has published on its website an amendment to the Main Board Listing Rules repealing Rule 8.21B with effect from 1 February 2012. Rule 8.21B, which was introduced in 2004, provided that...

The Stock Exchange of Hong Kong (SEHK or the Exchange) published a consultation paper (the Consultation Paper) in December 2011 to seek views and comments on its proposed Environmental, Social and Governance...

The Stock Exchange of Hong Kong (SEHK or the Exchange) has recently published the following: A reminder of the revised publication window for issuers' documents through the HKEx news website effective 5 March 2012...

The Securities and Futures Commission (SFC) has published a consultation paper (Consultation Paper) the main focus of which is proposed amendments to the Code of Conduct for Persons Licensed by or Registered with...

New streamlined property valuation disclosure requirements for new applicants' listing documents came into effect on 1 January 2012 with the implementation of the Companies Ordinance (Exemption of Companies and...

The latest issue of the Takeovers Bulletin (Issue No.19) published in December 2011 reminds fund managers of the dealing disclosure obligations under Rule 22 of the Code on Takeovers and Mergers (Takeovers Code)...

New streamlined requirements for property valuation disclosure in listing applicants' prospectuses and issuers' circulars came into effect on 1 January 2012 with the implementation of the Companies Ordinance...

The Securities and Futures (Professional Investor) (Amendment) Rules 2011 (Amendment Rules) which refine the requirements for evidencing whether a person qualifies as a high-net-worth professional investor under...

The Stock Exchange of Hong Kong (SEHK or the Exchange) has published the consultation conclusions (the Consultation Conclusions) on its review of the Code on Corporate Governance Practices (now renamed the Corporate...

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have published a joint consultation paper (the Consultation Paper) to seek comments on a proposed regulatory regime for the...

Chapter 21 (Chapter 21) of the Listing Rules (Listing Rules) of the Stock Exchange of Hong Kong Limited (the Exchange) sets out the specific requirements for the listing of securities by investment companies...

On 24 August, 2011, the SFC announced a one-month consultation to request public comments on their proposed amendments to the Codes on Takeover and Mergers and Share Repurchases (the Takeovers Code). The principal...

Amendments to the Administrative Measures for the Restructuring of Material Assets of Listed Companies (the Measures) (上市公司重大资产重组管理办法) have been announced by the China Securities Regulatory...

In its latest edition of the Dual Filing Update, the Securities and Futures Commission (SFC) reminds sponsors to exercise reasonable judgment in conducting IPO due diligence on listing applicants and to ensure that all...

The Securities and Futures Commission (SFC) has extended the implementation date of new conflicts-of-interest requirements governing research reports to 31 October 2011. Originally, the amendments to the Code of...

The Securities and Futures Commission (SFC) published on 30 June 2011 its Consultation Conclusions (the Conclusions) concerning proposed amendments to the Code of Conduct for Persons Licensed by or Registered with...

The Securities and Futures Commission (SFC) issued guidance, on 13 May 2011, in preparation for the full implementation of the Code on Unit Trusts and Mutual Funds (UT Code) and the Code on Investment-Linked...

The Takeovers and Mergers Panel (the Panel) released on 24 May 2011 its ruling on whether two parties should be regarded as "Concert Parties" under the Codes on Takeovers, Mergers and Share Repurchases (the Codes).

On 22 June 2011 the Securities and Futures Commission (SFC) published a revised draft of its Guidelines on Disclosure of Inside Information(Guidelines) which provides guidance on the new statutory obligation to...

Hong Kong Exchanges and Clearing Ltd (HKEx) has published Frequently Asked Questions on Models for RMB IPOs (the FAQs) on 22 June 2011. The FAQs confirm the readiness of the HKEx and the Hong Kong market for RMB...

The UK Bribery Act (the Act) comes into force on 1 July 2011. The Act represents an attempt on behalf of UK legislators to improve the law relating to bribery and corruption, an attempt prompted by increasing...

On 25 May 2011, the Securities and Futures Commission (SFC) published a consultation paper on the draft Securities and Futures (Short Position Reporting) Rules (SPR Rules). The draft SPR Rules are the result of...

On 20 May 2011, the Hong Kong Exchanges and Clearing Limited (HKEx) published consultation conclusions (Conclusions) on its December 2010 proposal that shares should only be permitted to trade ex-entitlement after...

Amendments to the Hong Kong regulatory regime governing public offers of investment products came into effect on 13 May 2011 with the coming into force of The Securities and Futures and Companies Legislation...

HKEx published in March 2011 Listing Decision LD6-2011 as to whether the Stock Exchange of Hong Kong (the Exchange) would permit a prior mandate to take the place of a shareholders' approval on the contractual...

On March 29 2011 the SFC published its Report on Sponsor Theme Inspection Findings (the Report). The Report is the work of a specialised team (the SFC Team), set up in 2009, which operates as part of the SFC.

The Securities and Futures Commission published, on 11 February 2011, Consultation Conclusions (the Conclusions) regarding the draft guidelines (the Guidelines) on the disclosure of price sensitive information...

On 30 March 2011 the UK Ministry of Justice published its Guidance (the MoJ Guidance) on procedures which commercial organisations can adopt in order to prevent persons associated with them from committing offences...

HKEx published in March 2011, a listing decision (HKEx-LD7-2011) on an attempt by a Main Board issuer ("Company A") to circumvent certain elements of the regulatory regime, set out in Chapter 14 of the Listing...

On January 21 2011 the Companies Registry ("CR") published External Circular No. 1/2011 ("the Circular"), which discussed the coming into effect, on 21 February 2011, of Parts 2 and 5 of the Companies Amendment...

On 21 January 2011 the Stock Exchange of Hong Kong (the "Exchange") published a guidance letter (the "Guidance Letter") on the new requirements for the publication of overseas regulatory announcements under Main...

The Hong Kong Stock Exchange has published materials on its website in relation to the "Mixed Media Offer" ("MMO") framework which came into effect from 1 February 2011. A Mixed Media Offer is an offer procedure...

The Securities and Futures Commission ("SFC") published on 23 February 2011 Consultation Conclusions regarding proposals to refine the requirements for evidencing whether a person qualifies as a high-net-worth...

The Financial Services and Treasury Bureau ("FSTB") published on 11 February 2011 Consultation Conclusions (the "Conclusions") on proposals to grant statutory backing to price sensitive information ("PSI")...

The extensive jurisdictional reach of the UK Bribery Act 2010 (the "Act"), when it is finally implemented, will have significant implications for businesses operating in Asia which have a UK connection and for...

Hong Kong Exchanges and Clearing Limited ("HKEx") published Consultation Conclusions on 21 January 2011 regarding proposed changes to the Market Capitalisation/Revenue Test under the Listing Rules for the Main Board...

Hong Kong Exchanges and Clearing Limited ("HKEx") will extend the trading hours of its securities and derivatives markets in two phases. The first phase will be effective on 7 March 2011 ("Phase 1") and the second...

On 3 December 2010 the Securities and Futures Commission ("SFC") and Stock Exchange of Hong Kong ("SEHK") released a joint consultation paper (the "Consultation Paper") outlining proposals to change the requirements...

Hong Kong Exchanges and Clearing Limited ("HKEx") published a consultation paper ("the Consultation Paper") on 17 December 2010, regarding the possibility of changes to the current market practice of ex-entitlement...

The Company ("Company A") was involved in the automobile business on the Mainland and operated via a jointly controlled entity ("JCE X"). The Listing Rules do not currently cater for JCEs and Company A could not...

Hong Kong Exchanges and Clearing Limited ("HKEx") published a consultation paper on 17 December 2010 regarding proposed changes to the Code on Corporate Governance Practices ("the Code"), the Corporate Governance...

On 17 December 2010, Hong Kong Exchanges and Clearing Limited ("HKEx") published a consultation paper on proposed changes to the requirements for the listing of debt securities targeted exclusively at professional...

Hong Kong Exchanges and Clearing Limited ("HKEx") published on 10 December 2010 its Consultation Conclusions on the Acceptance of Mainland Accounting and Auditing Standards and Mainland Audit Firms for Mainland...

On 1 April 2008 the Securities and Futures Commission ("SFC") and The Stock Exchange of Hong Kong ("SEHK") issued a Joint Consultation Paper proposing to allow listing applicants to issue paper application forms...

The Securities and Futures Commission ("SFC") has published a Consultation Paper on possible amendments to the regulatory framework governing investment research reports issued before a first listing of equity...

The Private Fund Investment Advisers Registration Act of 2010 (Act) was recently signed into law in the U.S. as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, resulting in changes to...

The Securities and Futures Commission (SFC) has recently released its consultation conclusions regarding the regulatory oversight of credit rating agencies (CRAs). The SFC published a paper on the subject on 19 July...

Hong Kong Exchanges and Clearing Limited (HKEx) published three listing decisions last month, October 2010, increasing to thirteen the number of acceptable jurisdictions of incorporation for overseas companies...

The publication on 13 October 2010 of interim guidance on pre-IPO investments aims to clarify the position in relation to pre-IPO investments pending a consultation on possible Listing Rule amendments. This comes...

The Securities and Futures Commission ("SFC") has published a consultation paper on a proposal to refine the evidential requirements for evidencing a person's professional investor status ("Consultation Paper").

The Stock Exchange of Hong Kong ("HKEx") has published a consultation paper on a proposed change to the minimum number of shareholders required for applicants listing under the Market Capitalisation/Revenue Test...

On 30 August 2010, the Financial Services and the Treasury Bureau ("FSTB") published its Consultation Conclusions on the First Phase Consultation of the draft Companies Bill ("CB") ("Consultation Conclusions")...

The Securities and Futures Commission (SFC) published its latest Dual Filing Update in July 2010 highlighting deficiencies in listing applications received during the six months ending March 2010. Out of 68 listing...

The Securities and Futures Commission (SFC) published a consultation paper (the Consultation Paper) on 19 July 2010, setting out its proposed regulatory regime to license and supervise the activities of credit...

The Stock Exchange of Hong Kong (HKEx) has released its consultation conclusions on its proposed amendments to the requirements for circulars and listing documents as set out in its September 2009 consultation paper...

The Securities and Futures Commission (SFC) has announced its intention to proceed with proposals to transfer the regulation of public offers of structured products from the Companies Ordinance (CO) prospectus...

The Stock Exchange of Hong Kong Limited ("HKEx") has published its consultation conclusions ("Consultation Conclusions") on its proposals to amend the connected transaction rules contained in its consultation...

Hong Kong Exchanges and Clearing Limited (HKEx) has published its Consultation Conclusions on New Listing Rules for Mineral Companies (Conclusions) setting out new listing rules for mineral and petroleum companies...

The Securities and Futures Commission ("SFC") issued a consultation paper on 21 April, 2010 setting out proposed amendments to the Codes on Takeovers and Mergers and Share Repurchases (the "Codes") ("Consultation...

The Takeovers Bulletin sets out a revised Practice Note 15 that clarifies the Executive's practice regarding confirmation of sufficiency of financial resources. As a matter of practice, the financial adviser to...

The Financial Services and the Treasury Bureau ("FSTB") and the Securities and Futures Commission ("SFC") have published consultation papers in relation to the FSTB's proposal to create a statutory obligation under...

HKEx has published a consultation paper (the "Consultation Paper") on proposed changes to its connected transaction rules. The proposed revisions address specific requirements of the connected transaction regime...

The Stock Exchange of Hong Kong Limited (the Exchange) has issued guidance on the vetting practices it has adopted to facilitate the listing of overseas companies on the Exchange in the form of its HKEx Guidance...

HKEx has published a consultation paper (the "Consultation Paper") on proposals to accept financial statements prepared under the Chinese Mainland accounting standards, China Accounting Standards for Business...

HKEx has published a consultation paper (the "Consultation Paper") on proposed changes to the requirements for circulars and listing documents of listed issuers. The review and suggested changes arose in response...

The Stock Exchange of Hong Kong Limited (the Exchange) published a consultation paper on 11 September 2009, setting out its proposals to update Chapter 18 of the Main Board Listing Rules for companies involved...

The Securities and Futures Commission (SFC) published a Consultation Paper on 31 July 2009 (the Consultation Paper) setting out proposals to introduce transactional reporting requirements and/or positional reporting...

HKEx has published a consultation paper (the "Consultation Paper") on proposals to shorten the process for rights issues and open offers in order to facilitate fund raisings by listed issuers. HKEx is seeking view...

On 26 June 2009, the Stock Exchange of Hong Kong Limited (the "Exchange") published a Consultation Paper on Proposed Changes to Filing and Checklist Requirements for the Listing of Equity Securities (the...

This Note is for the purposes of providing general information on recent developments relating to Business and Securities Laws as at 18 June 2009 in China only. No responsibility is taken for the completeness and/or...

The Stock Exchange of Hong Kong Limited (the Exchange) issued a News Release on 5 June 2009 setting out the circumstances in which it may grant a waiver from strict compliance with the profit test requirements under...

As of 1 June 2009, foreign ownership limits in public companies will be capped at 49%. The Prime Minister of Vietnam has signed Decision 55/2009/QD-TTg ("Decision 55"), dated 15 April 2009, on Foreign Ownership...

On 18 March 2009, the Financial Services Authority (FSA) published a Review of the global banking crisis, conducted by Lord Turner, Chairman of the FSA (the "Review") along with the FSA's Discussion Paper 09/2...

China's Ministry of Commerce ("MOFCOM") announced on 18 March 2009 that it has rejected Coca-Cola Company's ("Coca-Cola") US$2.4 billion (HK$19.65 billion) bid to acquire China Huiyuan Juice Group Limited ("Huiyuan")...

The SFC has approved amendments to the Main Board and GEM Listing Rules to extend the black out period for directors' dealings prior to the publication of issuers' annual results from one month to 60 days...

The Stock Exchange of Hong Kong Limited (the Exchange) published a press release on 12 February 2009 setting out the revised proposals of its Listing Committee regarding the controversial extension of the black...

The Stock Exchange of Hong Kong Limited (the Exchange) has announced that with effect from 12 February 2009 (Thursday), 25 additional securities will be eligible for short selling and 27 existing designated...

The latest Status Report on New Product and Market Development Initiatives (Status Report) and the latest quarterly newsletter (Newsletter) published by the Hong Kong Stock Exchange (HKEx) on 19 January 2009...

The Securities and Futures Commission has published its December 2008 Takeovers Bulletin which: reiterates the Takeovers Panel's October 2008 recommendation not to relax the trigger and creeper provisions in...

The Stock Exchange of Hong Kong Limited (the "Exchange") issued a press release on 30 December 2008 in relation to the deferred implementation of the extension of the "black out" period prohibiting directors from...

On 10 December 2008, the Financial Services and the Treasury Bureau (FSTB) published its second consultation conclusions on the rewrite of the Companies Ordinance (CO) covering company names, directors' duties...

The Stock Exchange of Hong Kong Limited (the Exchange) has published its Consultation Conclusions on Proposals in the 2008 Combined Consultation Paper (Consultation Conclusions). The Consultation Conclusions...

The Hong Kong Stock Exchange (the Exchange) has issued a letter to all issuers listed on the Main Board and Growth Enterprises Market (GEM) reminding them of their obligation to make timely public disclosure of...

The Takeovers Panel met recently to consider suggestions received by the Securities and Futures Commission (SFC) that, in light of current market conditions, the 30% general offer trigger point and the 2% creeper...

Hong Kong Exchanges and Clearing Limited (HKEx) published its Consultation Conclusions on the Growth Enterprise Market (GEM) on 2 May 2008 which set out the amendments to the GEM Listing Rules which will be...

On 9 May 2008, the Stock Exchange of Hong Kong (the Exchange) published a new Chapter 19B to the Main Board Listing Rules which will allow issuers to list on the Main Board (but not the Growth Enterprise Market)...

The Hong Kong Stock Exchange (the Exchange) published its Combined Consultation Paper on Proposed Changes to the Listing Rules (the Consultation Paper) on 11 January seeking comments from the market on 18 substantive...

From 10 March 2008, trading in a Main Board issuer's listed securities will no longer be suspended if the issuer publishes an announcement containing price sensitive information (PSI) between 6.00 a.m. and 9.00...

The SFC has recently published two consultation papers setting out its proposals to: make electronic submission of Disclosure of Interests (DI) notices under Part XV of the Securities and Futures Ordinance mandatory...

The amendments made by the Companies (Amendment) Ordinance 2004 to the provisions of the Companies Ordinance relating to overseas companies will come into effect on 14 December, 2007. The principal changes include...

The Stock Exchange of Hong Kong Limited (the Exchange) and the Securities and Futures Commission (SFC) published a Joint Policy Statement on 5 November 2007, announcing that they are launching a pilot scheme...

Hong Kong Exchanges and Clearing Limited (HKEx) has published Series 59 of the listing decisions dealing with pre-IPO issues of convertible bonds. The decisions considered whether various terms, including...

The Securities and Finance Commission of Hong Kong (the SFC) has launched a series of newsletters aimed at providing guidance and interpretation on matters relating to takeovers in Hong Kong. The first Takeovers...

The Securities and Futures Commission (SFC) released a consultation paper (the Consultation Paper) on proposed amendments to the Codes on Takeovers and Mergers and Share Repurchases (the Codes) on 19 September 2007.

Hong Kong Exchanges and Clearing Limited (HKEx) released a Consultation Paper (the Consultation Paper) on Periodic Financial Reporting on 31 August 2007. The paper sets out HKEx's proposals to: shorten the half-year...

Hong Kong Exchanges and Clearing Limited (HKEx) released a Consultation Paper (the Consultation Paper) (see archive) on the Growth Enterprise Market (GEM) on 27 July 2007. The paper sets out HKEx's proposals for...

HKEx's new regime for the electronic dissemination of regulatory information (the EDP) came into effect on 25 June 2007. Under the EDP, the HKEx websites become the primary channel for dissemination of regulatory...

The Securities and Futures Commission (the SFC) published a circular on 11 June 2007 (the Circular) setting out initiatives for simplifying and streamlining its licensing process for fund managers. These represent...

From 25 June 2007, with the launch of Phase 1 of its new regime for electronic dissemination of regulatory information (the Electronic Disclosure Project, (EDP)), Hong Kong Exchanges and Clearing Limited (HKEx) will...

On 7th March 2007, the Stock Exchange of Hong Kong Limited (SEHK) and the Securities and Futures Commission (SFC) published a Joint Policy Statement Regarding the Listing of Overseas Companies (Policy Statement).

The Government proposes to introduce to Legco as soon as possible a Securities and Futures Amendment Bill implementing a new statutory listing regime. This will be in line with the revised proposals for extending...

Subject to negative vetting by the Legislative Council, amendments to the rules on the position limits for Hang Seng China Enterprises Index (H-shares index) futures and options contracts will come into effect on...

The Hong Kong Exchanges and Clearing Limited (HKEx) has announced its Strategic Plan for 2007-2009 which adopts the following mission statement: to be a leading international marketplace for securities and derivatives...

In two related decisions in October and November 2006, the Stock Exchange of Hong Kong Limited (the Exchange) has decided to accept the listing of companies incorporated in Australia and British Colombia, subject to...

The Hong Kong Stock Exchange (the Exchange) has announced that it will terminate its practice of publishing Main Board and GEM listed issuers' short-form preliminary results announcements (Summary Forms) on its...

The Securities and Futures Commission (the SFC) has published its conclusions on the proposals set out in its August 2005 Consultation Paper for the modernisation of the prospectus regime governing the public offering...

The Securities and Futures Commission (SFC) published two circulars on September 5, 2006 in relation to the Guidelines for Sponsors and Compliance Advisers (Sponsor Guidelines), which form part of the Fit and Proper...

The Hong Kong Stock Exchange (HKEx) has recently published its Guide on pre-vetting requirements for announcements (Guide) to assist listed issuers in meeting certain continuing obligations under the Listing Rules.

The Stock Exchange of Hong Kong Limited (the Exchange) has published its conclusions on its proposed abolition of the requirement for Main Board issuers to publish paid announcements in the newspapers and other...

The Securities and Futures Commission ("SFC") has gazetted amendments to the relevant rules under the Securities and Futures Ordinance and to the Code of Conduct for Persons Licensed by or Registered with the...

New eligibility criteria and on-going obligations for sponsors will be implemented by the SFC with effect from January 1, 2007. Under the new regime, only corporate advisory firms meeting the new eligibility criteria...

The SFC published a press release on February 6, 2006 confirming its intention to proceed immediately with its proposal to set a securities collateral re-pledging limit in light of the general support by members of...

Hong Kong Exchanges and Clearing Limited ('HKEx') published its discussion paper on the Growth Enterprise Market (the 'Discussion Paper') on 20 January, 2006. The Discussion Paper does not contain a solution for GEM...

The Stock Exchange of Hong Kong Limited (the "Exchange") has published an exposure paper with regard to its proposal to abolish the requirement for Main Board issuers to publish paid announcements in the newspapers...

The Securities and Futures Commission has released its 'Report on the Derivative Warrants Market in Hong Kong' which includes its Six-Point Plan for improving the market

The Hong Kong Stock Exchange has published an article on derivative warrants that includes a discussion of the listing rule requirements and a discussion on the recent debate on derivative warrants

Amendments to the Hedge Fund Guidelines in Chapter 8.7 of the Code on Unit Trusts and Mutual Funds came into effect on 30 September 2005. This note summarises the principal revisions to the Guidelines.

The Securities and Futures Commission has published a consultation paper setting out its proposals for the final phase of its modernisation of the regime governing the public offering of shares and debentures

The Securities and Futures Commission has published its Consultation Conclusions on the amendments to Schedule 5 to the Securities and Futures Ordinance proposed in its February Consultation Paper.

The SFC has published its Consultation Conclusions on the changes to the Hong Kong Codes on Takeovers, Mergers and Share Repurchases and announced that the amendments will come into effect on 1 October 2005.

The Securities and Futures Commission has published the Consultation Conclusions on the Review of the Disclosure of Interests Regime under Part XV of the Securities and Futures Ordinance

Building on the existing regime for the licensing of corporate finance advisers, the SFC has published proposals for additional specific entry criteria and ongoing compliance obligations for sponsors.

SFC has published a consultation paper on its Proposed Revised Prevention of Money Laundering and Terrorist Financing Guidance Note & new shareholder remedies under Companies Ordinance effective on 15 July 2005

Amendments to the SFC's Code on Unit Trusts and Mutual Funds allowing collective investment schemes authorised under the Code to invest in listed real estate investment trusts came into effect on 22 April 2005

The SFC's Guidelines to Address Analyst Conflicts of Interest impose strict requirements on investment banks and broker /dealers in relation to reducing and disclosing analysts' conflicts of interest.

Proposed amendments to the SFO will codify the more important of the Exchange's Listing Rules into statutory listing requirements under the Securities and Futures (Stock Market Listing) Rules.

It is proposed to extend the proposal to synchronise the reference dates for buyers and sellers completing a transaction within 4 days (see paragraph 9 above) to physically settled options. On the exercise of an...

The Hong Kong Financial Services and Treasury Bureau have issued a second consultation paper on the proposed exemption of offshore funds from Hong Kong profits tax.

The amendments to the Listing Rules relating to the Code on Corporate Governance Practices (the Code) and the Corporate Governance Report to be included in listed companies' annual and summary annual reports have...

The Stock Exchange of Hong Kong Ltd. (the "Exchange") and the SFC have issued amendments to the Main Board and GEM Listing Rules including a new practice note on sponsor's due diligence as the first of 2 stages of...

General Requirements : the materials must not contain any substantive information not contained in the prospectus nor anything that is inconsistent with the information in the prospectus;the contents must not be false...

The Companies (Amendment) Ordinance 2004 (the 'Amendment Ordinance') was enacted on July 23, 2004 and is expected to come into effect towards the end of this year after the publication of a commencement notice in...

The Rules have been amended to require the prior approval of shareholders (other than the relevant director and his associates) for a service contract that is to be granted to a director of the listed issuer or any...

The Stock Exchange of Hong Kong (the Exchange) published draft amendments to the Main Board and GEM Listing Rules relating to the regulation of sponsors and independent financial advisers (IFAs) on May 4, 2004.

Voting by poll (rather than by show of hands) is required for: connected transactions; all resolutions requiring independent shareholders' approval; granting of options to a substantial shareholder, an INED or any of...

The Companies (Amendment) Ordinance 2003 (the CAO) is the first of a series of ordinances amending the Companies Ordinance (the CO) and will come into effect on February 13, 2004. The CAO implements certain corporate...

The first phase of a 3 phase exercise to overhaul the regulatory regime for offers of shares and debentures has been completed. Phase 1 comprised the following initiatives: SFC Guidelines permitting the issue in...

Part IV of the Securities and Futures Ordinance (the SFO) which came into effect on April 1 2003 regulates the offer of investment products to the public in Hong Kong. It builds on the provisions of the repealed...

One of the significant innovations introduced by the Securities and Futures Ordinance (the SFO) which came into effect on 1 April 2003 is its streamlining of the licensing regime which was previously spread over four...

The SFC issued a revised outline (see archive) of Part XV of the Securities and Futures Ordinance (SFO) on 6 August (the Outline) which summarises the provisions of Part XV and contains detailed examples of how they...

The Securities and Futures (Price Stabilising) Rules (the Rules) made under the Securities and Futures Ordinance (the SFO) prescribe the circumstances in which price stabilisation may be carried out without...

The consultation paper on the regulation of sponsors and independent financial advisers (the Consultation Paper) published by the Hong Kong Stock Exchange (the Exchange) and the SFC sets out their proposals for...

The Securities and Futures Ordinance (SFO) which came into effect on 1 April 2003 establishes dual civil and criminal regimes under Parts XIII and XIV respectively in relation to all types of market misconduct.

The Securities and Futures Ordinance (SFO) which came into effect on 1 April 2003 establishes dual civil and criminal regimes (under Parts XIII and XIV respectively) in respect of all types of market misconduct.

Part XV of the Securities and Futures Ordinance (SFO) which came into force on 1 April 2003 extends the regime for disclosure of interests in Hong Kong listed securities. The attached note sets out a summary of the...