Securities and Futures Commission (SFC)

The #SFC proposes a 5-year timeline for implementing an uncertificated securities market (USM) in Hong Kong after concluding its latest consultation on proposed subsidiary legislation, code and guidelines for USM. By removing the need for manual and paper-based processes, USM will help enhance operational efficiencies within Hong Kong’s financial market infrastructure. The new regime will be implemented towards the end of 2025, subject to completing the legislative process. Companies whose laws are compatible with the regime will have to transition to the new regime in batches by the end of 2030. See the press release for more information: https://lnkd.in/gBpi6jqV

The SFC’s Asset and Wealth Management Activities Survey 2023 reaffirms Hong Kong’s position as a premier asset and wealth management hub with a diversified investor base, globalised asset allocation and robust fund inflows. International investors consistently account for more than half of total asset under management (AUM), while the city allocates 60% of its managed assets to overseas markets. Compared to 2022, overall AUM grew 2% in 2023, while net fund inflows more than quadrupled. The number of licensed asset managers also showed steady growth on a three-year horizon. See press release (https://lnkd.in/gJGWCnPE) and full report (https://lnkd.in/g56wuhBG).

The #SFC and the China Securities Regulatory Commission (CSRC) recently held their 16th regular high-level meeting on enforcement cooperation. The meeting, held in Kunming, Yunnan Province, focused on initiatives to strengthen collaboration. The two regulators had in-depth discussions on bolstering enforcement cooperation in order to tackle cross-boundary securities crimes and misconduct more effectively, protect the interests of investors in Hong Kong and the Mainland, and reinforce Hong Kong’s status as an international financial centre. See the press release for details: https://lnkd.in/gKVSmFCy

Speaking at today’s Bond Connect Anniversary Summit 2024, the SFC’s CEO Ms Julia Leung emphasised the significance of Bond Connect in propelling the Mainland-Hong Kong mutual market access towards fixed income products.   “Bond Connect has promoted the growth of Hong Kong as a hub for fixed income, currencies and commodities (FICC),” said Ms Leung. “Going forward, the SFC will explore various initiatives and measures with other regulators and authorities to support the development of Hong Kong’s FICC business and reinforce its position as an international financial centre.” Ms Leung also noted that the SFC welcomes the announcement of the People’s Bank of China today on a new measure to support the use of onshore bonds held under Northbound Bond Connect as margin collateral for Northbound Swap Connect transactions.   The full speech: https://lnkd.in/ggmwCTwb The press release on Northbound Swap Connect margin collateral arrangement: https://lnkd.in/gjgEUnaY

The #SFC will launch a new system named e-IP on 29 July 2024 to enable online applications and submissions related to investment products.   e-IP will serve as a one-stop online platform for its users to submit applications, make submissions, track progress, maintain investment products’ information profiles and settle fee payments. Its launch will promote digital or paperless processing and enhance processing efficiency.   For details, please refer to the press release https://lnkd.in/gHYhcPV9 and the circular https://lnkd.in/g_m_RPRx.

The #SFC today warns the public of seven entities suspected of engaging in fraudulent activities purported to be related to virtual assets. They are operating under the names of: “XTCQT”, “CEG”, “BTEPRO”, “Bitones. org”, “Yomaex Crypto Market Limited”, “Bstor”, and “Taurusemex”. The SFC notes that the suspected entities purport to provide cryptocurrency trading services and investors have reported withdrawal issues with the suspected entities. One of the suspected entities, Taurusemex, also falsely claimed that investors’ accounts were regulated by the SFC. The Hong Kong Police has taken steps to block access to relevant websites. The SFC has also posted the entities and their respective websites on the SFC’s Alert List. Read the press release for details: https://lnkd.in/g8AY-TVb

The #SFC today warned the public of entities operating under the names of "Tokencan", “VBIT Exchange” and " HKD. com Corporation” for suspected virtual asset-related fraudulent activities and/or purporting to operate virtual asset trading platform (VATP) in Hong Kong without a licence. The Hong Kong Police has taken steps to block access to relevant websites and social media pages. The SFC has also posted the entities and their respective websites on the SFC’s Alert List. The SFC cautions investors against trading virtual assets on unregulated VATPs. Investors may risk losing their entire investment held on the platform if it ceases operation, collapses, is hacked or otherwise suffers from any misappropriation of assets. Read the press release for details: https://lnkd.in/gZ4GGSsy

The #SFC’s Takeovers Bulletin features updates and information relating to takeovers in Hong Kong. Read the latest issue: https://lnkd.in/gNksRgxM 

The #SFC published its Annual Report 2023-24 today as it marks its 35-year history as the guardian of Hong Kong’s capital markets. Advancing Hong Kong’s super-connector role is the SFC’s priority. It is making efforts with all parties to launch the recent measures announced by the China Securities Regulatory Commission to support Hong Kong’s market developments. Other highlights of the year included remarkable growth recorded by Mainland-Hong Kong mutual market access schemes, progress in driving Web3 development, tremendous enforcement efforts made in upholding market integrity, as well as the SFC’s contribution in global standard-setting work. To lead by example, the SFC also discloses its Scope 1-3 emissions for the first time in this report. See the video message from the SFC’s Chairman and CEO ( https://lnkd.in/gKt9fZRG), and read the full report (https://lnkd.in/gneXwF3A).

The China Securities Regulatory Commission (CSRC) announced five measures in April to enhance Stock Connect and strengthen Hong Kong’s status as an international financial centre. Two of the measures are making headway, namely, enhancing the scheme of mutual recognition of funds and expanding the scope of ETF Connect. The #SFC welcomes the public consultation paper published today by the CSRC on proposed rule amendments to enhance the Mainland-Hong Kong mutual recognition of funds scheme. Find out more in the SFC’s press release: https://lnkd.in/gzmJbX8b HKEX also announced today that the expansion of eligible ETFs under Stock Connect will take effect on 22 July this year. See HKEX’s press release for details: https://lnkd.in/gic86PyH