Regulatory Updates - GCC Consulting

The Hong Kong Institute of Certified Public Accountants (HKICPA) participated in the Asian Financial Forum 2025(AFF), themed “Powering the Next Growth Engine”, to promote sustainable development and the adoption of the HKFRS Sustainability Disclosure Standards (HKFRS SDS). HKICPA President Edward Au highlighted Hong Kong’s early alignment with ISSB Standards, reinforcing [...]

Industry experts and academia explore the role of insurance in developing silver economy

The Insurance Authority (IA) hosted a panel discussion titled “Navigating the Silver Economy: Insurance Sector Opportunities in an Aging Society” at the Asian Financial Forum (AFF) on 13 January 2025, highlighting the challenges and opportunities presented by population ageing. Experts from the industry and academia explored demographic trends in Hong [...]

SFC welcomes expanding use of onshore RMB bonds as margin collateral in OTC Clearing Hong Kong Limited

The Securities and Futures Commission (SFC) announced that OTC Clearing Hong Kong Limited (OTC Clear) has started accepting onshore bonds issued by the Ministry of Finance and Mainland policy banks, held under Northbound Bond Connect (CGBs), as margin collateral for Northbound Swap Connect transactions. The SFC, in collaboration with the [...]

Arrangement for Offshore RMB Bond Repurchase Business Using Bonds Held under Northbound Bond Connect as Collateral announced by HKMA

The Hong Kong Monetary Authority (HKMA) announced on January 13 the arrangement for offshore RMB bond repurchase (repo) business to enhance market-based offshore RMB liquidity management and bolster Hong Kong’s status as an offshore RMB hub. Under this initiative, Northbound Bond Connect participants can use eligible onshore bonds as collateral [...]

New Measures to Deepen Financial Cooperation between Hong Kong and the Mainland

On January 13, the Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBoC) unveiled a set of measures to enhance financial market connectivity between Hong Kong and Mainland China, reinforcing Hong Kong’s role as a global offshore RMB hub. These initiatives include the introduction of a RMB [...]

HKEX ANNOUNCES SENIOR APPOINTMENTS

Hong Kong Exchanges and Clearing Limited (HKEX) has appointed Gregory Yu as Managing Director, Head of Markets, and Kevin Rumjahn as Managing Director, Head of Strategic Projects. Mr. Yu, joining in March 2025 after 18 years at JP Morgan, will enhance HKEX’s equities, derivatives, and fixed-income franchises, reporting to CEO [...]

Tender for the re-opening of 3-year RMB HKSAR Institutional Government Bonds to be held on Thursday, 16 January 2025

The Hong Kong Monetary Authority (HKMA), on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), announced on 9 January 2025 that a tender for 10-year HKD Institutional Government Bonds under the Infrastructure Bond Programme will take place on Wednesday, 15 January 2025, with settlement scheduled for Thursday, [...]

IMF recognises Hong Kong’s position as international financial centre and fiscal consolidation path

Following the completion of the 2024 Article IV Consultation with the Hong Kong Special Administrative Region (HKSAR), the International Monetary Fund (IMF) Staff Mission released its Concluding Statement on January 10, 2025. The Mission acknowledged Hong Kong’s gradual economic recovery despite ongoing challenges and reaffirmed its status as an international [...]

SFC warns public against unlicensed virtual asset trading platform iSCAT

The Securities and Futures Commission (SFC) has issued a warning regarding an unlicensed virtual asset trading platform, International Standard Carbon Assets Technology Co., Limited, also known as “iSCAT” or “iSCAT Exchange.” The platform falsely claimed to operate as a licensed virtual asset trading platform (VATP) in Hong Kong, offering cryptocurrency [...]

Tender of 10-year HKD HKSAR Institutional Government Bonds to be held on Wednesday, 15 January 2025

January 10, 2025

Revised Tentative Issuance Schedule for HKSAR Institutional Government Bonds under Infrastructure Bond Programme and Government Sustainable Bond Programme

January 10, 2025

The Hong Kong Monetary Authority reported a 0.3% increase in total deposits with authorized institutions in November 2024, driven by a 1.3% rise in foreign currency deposits despite a 0.9% decline in Hong Kong dollar deposits. Renminbi deposits grew by 3.5% to RMB991.8 billion, while cross-border renminbi trade remittances rose [...]

Supervisory Incubator for Distributed Ledger Technology (DLT)

January 9, 2025

On 8 January 2025, the Hong Kong Monetary Authority (HKMA) launched the Supervisory Incubator for Distributed Ledger Technology (DLT), a platform aimed at helping Authorized Institutions (AIs) harness the benefits of DLT while managing associated risks. The Incubator provides a one-stop supervisory platform offering AIs access to a dedicated team [...]

Hong Kong’s Latest Foreign Currency Reserve Assets Figures Released

January 8, 2025

The Hong Kong Monetary Authority (HKMA) announced that Hong Kong’s official foreign currency reserve assets totaled US$421.4 billion at the end of December 2024, a decrease from US$425.1 billion at the end of November 2024, with no unsettled foreign exchange contracts during this period. These reserves represent more than five [...]

Extension of e-Filing Services toDocuments Delivered under Various Ordinances

January 6, 2025

The Companies Registry External Circular No. 1 / 2025 announces the extension of e-Filing services for documents submitted to the Registrar of Companies under various ordinances, effective January 3, 2025. The e-Filing services, available through the e-Services Portal, now cover documents related to the Companies Ordinance, Trustee Ordinance, Limited Partnerships [...]

Notes exchange service and electronic lai-see for Chinese New Year

January 3, 2025

The Hong Kong Monetary Authority (HKMA) and the three note-issuing banks (HSBC, Standard Chartered, and Bank of China) announced that new and good-as-new notes for lai-see will be available for exchange from 14 to 28 January 2025. To promote sustainability, the HKMA encourages the use of electronic lai-see via payment [...]

Driving quality improvement – Setting the right tone at the top for performing an effective root cause analysis and remediation

The Accounting and Financial Reporting Council (AFRC) has released the report “Inspection Insights – Root Cause Analysis and Remediation: A Call to Action for Quality Improvement.” The report highlights the importance of effective root cause analysis (RCA) and remediation in addressing audit deficiencies and fostering continuous quality improvement among PIE [...]

AFRC welcomes the 2023-24 Annual Report and new appointmentsof the Process Review Panel

The Accounting and Financial Reporting Council (AFRC) welcomed the 2023-24 Annual Report by the Process Review Panel (PRP), which reviewed the AFRC’s inspections, investigations, and oversight activities. The PRP confirmed that the AFRC adhered to its internal procedures. Additionally, the AFRC welcomed the reappointment of current members and the new [...]

Insurance Authority welcomes the issuance of catastrophe bond in Hong Kong covering perils in Mainland China and the United States

The Insurance Authority (IA) welcomed the issuance of a US$35 million catastrophe bond by Taiping Reinsurance via Silk Road Re Limited, providing protection against U.S. named storms and Mainland China earthquakes for three years starting 1 January 2025. This sixth insurance-linked security (ILS) issued in Hong Kong and the first [...]

Report on Initial Public Offering Applications, Delisting and Suspensions (December 2024)

The Hong Kong Stock Exchange’s December 2024 report on IPOs, delistings, and suspensions highlights key statistics on regulatory activities. By year-end, there were 2,631 listed companies, with 71 new listings and 49 delistings during 2024. A total of 250 IPO applications were processed, including 107 approved listings. Median processing times [...]

Designation of Domestic Systemically Important Authorized Institutions

The Hong Kong Monetary Authority (HKMA) has completed its annual review of Domestic Systemically Important Authorized Institutions (D-SIBs), confirming that the 2024 list and associated Higher Loss Absorbency (HLA) requirements remain unchanged from 2023. Under the D-SIB framework, designated institutions must integrate an HLA capital buffer (ranging from 1% to [...]

Monetary Statistics for November 2024

Residential Mortgage Survey Results for November 2024

The Hong Kong Monetary Authority reported a 9.7% month-on-month increase in mortgage applications to 7,995 in November 2024. Mortgage loan approvals rose by 27.7% to HK$24.2 billion, with significant increases in loans for primary market transactions (46.2%), secondary market transactions (20.3%), and refinancing (20.1%). However, mortgage loans drawn down decreased [...]

International Reserves and Foreign Currency Liquidity

The Hong Kong Monetary Authority (HKMA) announced the release of analytical data on Hong Kong’s foreign currency reserves and liquidity as of the end of November 2024. The data, published monthly in line with the International Monetary Fund’s Special Data Dissemination Standard (SDDS), is detailed in the Template on International [...]

Exchange Fund Abridged Balance Sheet and Currency Board Account

As of 30 November 2024, the total assets of the Exchange Fund reached HK$4,026.7 billion, an increase of HK$11.6 billion from October. Foreign currency assets rose by HK$19.8 billion due to investment revaluation, interest income, and the issuance of Certificates of Indebtedness, while Hong Kong dollar assets fell by HK$8.2 [...]

Hong Kong Deposit Protection Board implements second phase of enhancement measures of Deposit Protection Scheme

The second phase of enhancements to Hong Kong’s Deposit Protection Scheme (DPS) will take effect on 1 January 2025, following the first phase launched in October 2024. New measures include enhanced coverage for depositors during bank mergers or acquisitions and mandatory display of DPS membership signs on electronic banking platforms. [...]

Cyber Intelligence Sharing Platform Enhancements

December 30, 2024

The Hong Kong Monetary Authority (HKMA) urges authorized institutions (AIs) to actively participate in the enhanced Cyber Intelligence Sharing Platform (CISP) announced by the Hong Kong Association of Banks (HKAB) on 27 December 2024. The enhancements include guidelines and best practices, a verbal intelligence-sharing forum, and connections between banking, insurance, [...]

Circular to Licensed Corporations and Associated Entities – Revised Business and Risk Management Questionnaire and New Analysis of Scheme Assets for Associated Entity of an RA13 Intermediary

December 30, 2024

The Securities and Futures Commission (SFC) has issued a revised Business and Risk Management Questionnaire (BRMQ) for licensed corporations (LCs) and associated entities (AEs), and introduced a new analysis form for scheme assets of associated entities of RA13 intermediaries. These updates, effective for financial years ending on or after 31 [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism – United Nations Sanctions (Libya) Regulation 2019

December 24, 2024

The Securities and Futures Commission (SFC) has issued an update regarding the revised list of “individuals and entities” under section 43 of the United Nations Sanctions (Libya) Regulation 2019, published by the Commerce and Economic Development Bureau on December 21, 2024. Licensed corporations, SFC-licensed virtual asset service providers, and associated [...]

SFC and Ministry of Finance top management meet in Beijing

December 24, 2024

On December 19, 2024, SFC Chairman Dr. Kelvin Wong and CEO Ms. Julia Leung met with China’s Minister of Finance, Mr. Lan Fo’an, in Beijing. They discussed the development of Hong Kong as an international financial center, enhancing mutual market access, and strengthening regulatory cooperation on auditing Mainland companies listed [...]

SFC and SAFE top management meet in Beijing

December 24, 2024

On December 20, 2024, Dr. Kelvin Wong, Chairman of the Securities and Futures Commission, and CEO Ms. Julia Leung met with Mr. Zhu Hexin, Deputy Governor of the People’s Bank of China, in Beijing. They discussed recent financial market developments in Mainland China and Hong Kong, agreeing to enhance cooperation [...]

CCyB: revised SPM module CA-B-3 and return MA(BS)25

The Hong Kong Monetary Authority (HKMA) has issued a revised Supervisory Policy Manual (SPM) module CA-B-3 on the Countercyclical Capital Buffer (CCyB) and an updated return form (MA(BS)25) for quarterly reporting. These revisions align with the Banking (Capital) (Amendment) Rules 2023 and incorporate updates related to the revised market risk [...]

Measures to protect bank customers from authorized payment scams

The Hong Kong Monetary Authority (HKMA) has issued new guidance for Authorized Institutions (AIs) to combat authorized payment scams (APS), which have caused significant financial losses in recent years. Key measures include implementing a comprehensive APS detection and monitoring framework, promptly alerting customers about high-risk transactions, applying effective risk mitigation [...]

Streamlining of Audio-recording Requirements for Sale of Investment and Insurance Products

The Hong Kong Monetary Authority (HKMA) has announced a streamlined approach to audio-recording requirements for investment and insurance product sales conducted via video-conference. Audio-recording will now only be required under specific circumstances, such as transactions involving complex products or solicitation of non-complex products with risk mismatches. The HKMA also introduced [...]

Senior Appointment at the Hong Kong Monetary Authority

The Hong Kong Monetary Authority (HKMA) announced the appointment of Mr. Nelson Chow as Executive Director (Financial Infrastructure), effective 30 December 2024, succeeding Mr. Colin Pou, who will become CEO of The Hong Kong Mortgage Corporation Limited. Mr. Chow will oversee the development and stability of Hong Kong’s financial market [...]

HKMA and CBUAE deepen financial market co-operation between Hong Kong and UAE

The Hong Kong Monetary Authority (HKMA) and the Central Bank of the United Arab Emirates (CBUAE) held their second bilateral meeting in Hong Kong, reinforcing financial collaboration between the two jurisdictions. A Memorandum of Understanding (MOU) was signed to establish connectivity between their debt capital markets and financial infrastructures, enabling [...]

HKEX in 2024: Year in Review

In 2024, Hong Kong Exchanges and Clearing Limited (HKEX) achieved significant milestones, including new leadership, enhanced connectivity with international markets, and strategic initiatives to solidify its role as a global financial hub. HKEX ranked among the world’s top four IPO venues, raising $83 billion from 66 listings, and celebrated the [...]

Circular to Licensed Corporations – Updated FAQs and Reporting Instructions for OTC Derivatives Reporting

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) jointly released revised FAQs on the Securities and Futures (OTC Derivative Transactions – Reporting and Record Keeping Obligations) Rules and updated Supplementary Reporting Instructions (SRI) for OTC derivative trade reporting. These updates, effective from 29 September 2025, [...]

SFC publishes review of SEHK’s performance in regulating listing matters

The Securities and Futures Commission (SFC) released its review of The Stock Exchange of Hong Kong Limited’s (SEHK) regulation of listing matters in 2022-2023. The review evaluated SEHK’s operations, handling of issuers’ non-compliance, unusual stock movements, and IPO application vetting. While SEHK made progress on prior recommendations, the SFC identified [...]

SFC and PBoC top management meet in Beijing

The SFC’s Chairman, Dr. Kelvin Wong, and CEO, Ms. Julia Leung, met with the People’s Bank of China Governor, Mr. Pan Gongsheng, in Beijing to discuss strengthening Mainland-Hong Kong financial cooperation. Key topics included promoting RMB internationalization, enhancing mutual market access, and reinforcing Hong Kong’s role as an offshore RMB [...]

Mainland-Hong Kong Mutual Recognition of Funds enhancements to take effect on 1 January 2025

The Securities and Futures Commission (SFC) welcomed the publication of revised guidelines by the China Securities Regulatory Commission (CSRC) and other regulators to implement enhancements to the Mutual Recognition of Funds (MRF) scheme. These measures, effective from 1 January 2025, include tripling the sales limit for Hong Kong funds in [...]

Insurance Authority welcomes appointments and reappointments of Non-Executive Directors

The Insurance Authority (IA) has announced the reappointment of Mr. Stephen Yiu as Chairman for another three-year term, alongside the appointment of new Non-Executive Directors (NEDs) Professor Darwin Choi, Mr. Andrew Fung, and Dr. Fung Hong for three-year terms. Additionally, several current NEDs, including Ms. Ivy Cheung and Mr. Lam [...]

Exchange Publishes Conclusions on Corporate Governance Code Enhancements

The Stock Exchange of Hong Kong (HKEX) has published its consultation conclusions on enhancing the Corporate Governance (CG) Code and related Listing Rules, with all proposals receiving majority support. The final changes, effective from 1 July 2025, aim to strengthen board effectiveness, diversity, and independence, including new requirements for board [...]

Exchange Publishes Consultation Paper on Proposals to Optimise IPO Price Discovery and Open Market Requirements

The Stock Exchange of Hong Kong (HKEX) has published a consultation paper proposing reforms to enhance IPO price discovery and open market requirements to strengthen Hong Kong’s competitiveness as a listing hub. Key proposals include optimizing the price discovery process, revising public float and ongoing float requirements, offering flexibility for [...]

Engaging more than one Credit Reference Agency under Credit Data Smart

The Hong Kong Monetary Authority (HKMA) has set requirements for retail banks, including digital banks, to enhance operational resilience by engaging with more than one credit reference agency (CRA) under the Credit Data Smart (CDS) system. This requirement, effective from January 2025, aims to ensure banks can swiftly switch between [...]

Composite Interest Rate: End of November 2024

The Hong Kong Monetary Authority (HKMA) announced that the composite interest rate at the end of November 2024 decreased by 10 basis points to 2.20%, down from 2.30% at the end of October. This decrease was primarily due to a reduction in the weighted funding cost for deposits during the [...]

HKMA announces inaugural cohort of GenA.I. Sandbox

The Hong Kong Monetary Authority (HKMA), in partnership with Cyberport, has launched the first cohort of the Generative Artificial Intelligence (GenA.I.) Sandbox, selecting 15 use cases from 10 banks and four tech partners. These use cases, chosen from over 40 proposals, focus on enhancing risk management, anti-fraud measures, and customer [...]

SFC warns public of Alpha Advice’s unauthorised advertisements of investment product on Facebook

The Securities and Futures Commission (SFC) has issued a warning about Facebook advertisements for a suspicious investment product, “Litigation Asset-Backed Notes” or “90-Day Notes,” targeting Hong Kong investors. The SFC did not authorize these ads, which may violate the Securities and Futures Ordinance (SFO) and the Companies (Winding Up and [...]

SFC and CSRC top management meet in Beijing

The Chairman and CEO of the Securities and Futures Commission (SFC), Dr. Kelvin Wong and Ms. Julia Leung, met with Mr. Wu Qing, Chairman of the China Securities Regulatory Commission, in Beijing. They followed up on cooperation initiatives from their November meeting, discussing ways to strengthen regulatory collaboration, enhance market [...]

ICAC, Competition Commission sign MoU to enhance collaboration, following first joint training for 30 officers

On December 18, the Independent Commission Against Corruption (ICAC) and the Competition Commission signed a Memorandum of Understanding (MoU) to enhance collaboration in tackling corruption and anti-competitive practices, further reinforcing Hong Kong’s reputation as a clean and fair society. The two agencies have previously worked together on joint operations targeting [...]

HKEX’s Core Climate Provides Carbon Credits Settlement Services for Cathay Pacific Airways

Hong Kong Exchanges and Clearing Limited (HKEX) announced that Cathay Pacific Airways has successfully settled 50,000 tonnes of carbon credits through its Core Climate carbon marketplace as part of its voluntary carbon offset program. This milestone highlights Core Climate’s commitment to supporting companies in their climate transition. HKEX’s Group General [...]

Adjustment of Base Rate

The Hong Kong Monetary Authority (HKMA) has set the Base Rate at 4.75% effective immediately, following a pre-established formula. This rate, which determines the Discount Rates for repurchase transactions through the Discount Window, is based on either 50 basis points above the lower end of the US federal funds target [...]

SFC licenses virtual asset trading platforms under swift licensing process

The Securities and Futures Commission (SFC) has granted licenses to four virtual asset trading platforms (VATPs) following a risk-based inspection process. These platforms can operate with a restricted business scope while addressing feedback from the SFC’s inspections. They must also undergo independent vulnerability assessments and penetration tests. The SFC emphasized [...]

HKEX Offers Enhanced Data Products Experience with Launch of HKEX Data Marketplace

December 18, 2024

Hong Kong Exchanges and Clearing Limited (HKEX) has launched the HKEX Data Marketplace, a web-based platform that provides users with easier access to historical and reference data. Initially, the platform will offer shareholding data from the Central Clearing and Settlement System (CCASS), historical full book data from HKEX’s securities and [...]

HKEX to Reduce Minimum Spreads in Hong Kong Securities Market

December 18, 2024

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the reduction of minimum spreads for equities, Real Estate Investment Trusts (REITs), and other Applicable Securities (excluding ETPs, debt securities, ETOs, and Structured Products) in two phases. The changes aim to lower transaction costs and improve liquidity. Phase 1 will be [...]

Change of Managers for Tahoe Life Insurance Company Limited

The Insurance Authority (IA) announced the appointment of Mr. Glen Ho and Mr. Ivan Chan from Deloitte Touche Tohmatsu as Joint and Several Managers of Tahoe Life Insurance Company Limited, effective 17 December 2024. They will work alongside current Manager Mr. Oliver Cheng to ensure the company’s operations continue smoothly [...]

Good Practices on Transition Planning

The Hong Kong Monetary Authority (HKMA) has issued a circular sharing key observations and good practices on transition planning, based on a survey of 38 authorized institutions (AIs) conducted in Q4 2023. This follows a circular issued in August 2023 outlining high-level principles for transition planning and the launch of [...]

OTC Clear to Accept China Government Bonds and Policy Bank Bonds as Collateral for Swap Connect from 13 January 2025

Hong Kong Exchanges and Clearing Limited (HKEX) announced that starting 13 January 2025, offshore investors can use China Government Bonds and Policy Bank Bonds held through Bond Connect as collateral for Northbound Swap Connect. This will provide greater flexibility for international investors, improve capital efficiency, and promote the internationalisation of [...]

Circular to management companies of SFC-authorised money market funds

The Securities and Futures Commission (SFC) has issued a circular outlining its requirements and expectations for management companies (Managers) of SFC-authorized money market funds (MMFs). Managers must maintain effective liquidity risk management policies, considering factors such as investment strategy, investor base, liquidity profile, and redemption policy. The SFC emphasizes the [...]

Banking (Capital)(Amendment) Rules 2023 – Supplementary Guidance onthe Revised Credit Risk Framework

The Hong Kong Monetary Authority (HKMA) has issued supplementary guidance on the revised credit risk framework introduced by the Banking (Capital) (Amendment) Rules 2023, effective 1 January 2025. The guidance, organized into six chapters, covers topics such as ECAI ratings, the Standardized (STC) and Internal Ratings-Based (IRB) approaches, counterparty credit [...]

Revised Supervisory Policy Manual (SPM) Module CA-S-10 “Fair Value Practices

The Hong Kong Monetary Authority (HKMA) has issued a revised version of the Supervisory Policy Manual (SPM) module CA-S-10, now titled “Fair Value Practices.” The update aligns with the “Prudent Valuation Guidance” under the Basel Framework and the latest accounting standards for fair value measurement, incorporating policy clarifications. The revised [...]

Supervisory Policy Manual (SPM): Consequential updates arising fromimplementation of Basel III final reform package

The Hong Kong Monetary Authority (HKMA) announced the issuance of five revised Supervisory Policy Manual (SPM) modules as statutory guidelines under the Banking Ordinance, effective 1 January 2025. The updated modules include CR-G-8 (Large Exposures and Risk Concentrations), CR-G-9 (Exposures to Connected Parties), CR-L-1 (Consolidated Supervision of Concentration Risks), CR-L-4 [...]

Guidelines for counterparty credit risk management

The Basel Committee on Banking Supervision (BCBS) published new Guidelines for Counterparty Credit Risk (CCR) Management on 11 December 2024, replacing its 1999 paper on interactions with highly leveraged institutions. The guidelines address industry weaknesses by emphasizing due diligence of counterparties, comprehensive credit risk mitigation strategies, diverse CCR metrics, and [...]

Senior Staff Movement at the Hong Kong Monetary Authority

The Hong Kong Monetary Authority (HKMA) announced that Ms Lillian Cheung, Executive Director (Research), will resign for personal reasons in May 2025. Chief Executive Mr Eddie Yue expressed gratitude for her dedicated service and wished her well. The HKMA will conduct an open recruitment for her replacement, with further announcements [...]

Analytical Accounts of the Exchange Fund

The Hong Kong Monetary Authority (HKMA) reported that the Exchange Fund’s foreign assets rose by HK$30.8 billion to HK$3,506.4 billion at the end of November 2024. The Monetary Base totaled HK$1,950.1 billion, while claims on the private sector in Hong Kong reached HK$287.8 billion, with foreign liabilities standing at HK$28.0 [...]

SFC steps up anti-scam publicity with “Don’t be Sucker” campaign

The Securities and Futures Commission (SFC) launched its “Don’t be Sucker” anti-scam campaign to raise public awareness of investment fraud, focusing on scams like online romance schemes, impersonation, and fake financial tips. Central to the campaign is Shui Yu (水魚), a cartoon symbolizing gullible investors, featured in ads, a rap [...]

HKICPA publishes HKFRS Sustainability Disclosure Standards

The Hong Kong Institute of Certified Public Accountants (HKICPA) has issued the HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures, fully aligned with the IFRS Sustainability Disclosure Standards (ISSB Standards), effective 1 August 2025. HKICPA President Edward Au highlighted the standards’ role in [...]

HKEX to Introduce New Post-Trade Services on Orion Cash Platform

Hong Kong Exchanges and Clearing Limited (HKEX) announced a multi-year enhancement programme for its cash equities market’s post-trade services through the Orion Cash Platform (OCP), starting in mid-2025. Key upgrades include real-time trade data processing, automated post-trade reporting, and settlement instruction matching, with technical readiness for a T+1 settlement cycle [...]

SFC welcomes launch of Integrated Fund Platform

The Securities and Futures Commission (SFC) welcomed the launch of the first phase of HKEX’s Integrated Fund Platform (IFP), starting with the Fund Repository, which offers investors centralized access to retail fund information. Future components, including a business platform and communications network, will streamline fund transactions between managers and distributors. [...]

Greater connectivity driving Hong Kong’s capital markets forward: SFC Quarterly Report

Hong Kong’s capital markets continued to thrive in the third quarter, driven by strengthened connectivity with Mainland China and the Middle East, according to the SFC’s latest Quarterly Report. Notable highlights include record net inflows of RMB664.3 billion through the Mainland-Hong Kong Stock Connect and significant growth in the ETF [...]

ICAC’s Leadership Programme gears worldwide law enforcers towards effective leadership to meet future challenges

December 12, 2024

Thirty-one representatives from local, Mainland, and international law enforcement agencies and professional bodies completed the ICAC’s three-week Leadership and Executive Development (LED) Programme, organized by the Hong Kong International Academy Against Corruption (HKIAAC). Themed “Press ahead, lead the future,” the programme aimed to strengthen leadership and anti-corruption capabilities through expert-led [...]

HKICPA signs the Strategic Agreement for Developing Guangdong-HK-Macau Accounting Industry: Deepening cooperation accounting industries within the region

December 12, 2024

The Hong Kong Institute of Certified Public Accountants (HKICPA), along with the Guangdong Institute of Certified Public Accountants (GDICPA), the Hong Kong Association of Registered Public Interest Entity Auditors (PIEAA), and the Union of Associations of Professional Accountants of Macau (UAPAM), signed the 2024 Strategic Agreement for Developing the Guangdong-Hong [...]

The People’s Bank of China will issue Renminbi Bills through Central Moneymarkets Unit of Hong Kong Monetary Authority

December 12, 2024

The People’s Bank of China (PBOC) will hold a tender for RMB20 billion six-month RMB Bills on 18 December 2024, with settlement on 20 December 2024. Qualified Central Moneymarkets Unit (CMU) members can participate through the CMU BID on a coupon-bid basis, with a minimum bid of RMB500,000 and interest [...]

HKICPA welcomes the Government’s Roadmap on Sustainability Disclosure in Hong Kong

The Hong Kong Institute of Certified Public Accountants (HKICPA) welcomes the Government’s Roadmap on Sustainability Disclosure, outlining Hong Kong’s adoption of the IFRS Sustainability Disclosure Standards (ISSB Standards). As the designated sustainability reporting standard setter, HKICPA will publish the HKFRS Sustainability Disclosure Standards (HKFRS SDS), fully aligned with ISSB Standards, [...]

Asian Insurance Forum 2024 concludes with record-high participation and insightful dialogues unlocking new opportunities amidst volatility

The Insurance Authority (IA) hosted the seventh Asian Insurance Forum (AIF) on 10 December 2024, themed “Rising to the Challenge amidst Global Volatility,” featuring over 20 global financial leaders and attracting over 2,400 participants. Key discussions centered on global supervisory priorities, insurance in wealth management, and bolstering Hong Kong’s position [...]

Exchange Presents Results of Review of Issuers’ 2023 Annual Reports and Publishes New Guide on Preparation of Annual Report

The Stock Exchange of Hong Kong Limited (HKEX) published its annual review of listed issuers’ 2023 financial year-end reports, highlighting high compliance rates with disclosure requirements and continuous improvements in reporting of money lending transactions. The review, supported by AI technology, assessed areas such as financial statements, lending transactions, and [...]

Coin Collection Programme

The Hong Kong Monetary Authority (HKMA) announced the new service schedule for its two “Coin Carts” under the Coin Collection Programme from 6 January to 23 March 2025. Since its launch in October 2014, the Programme has collected over 1 billion coins worth HK$1,598 million through 1,295,000 transactions. The Coin [...]

Record of Discussion of the Meeting of the Exchange Fund Advisory Committee Currency Board Sub-Committee held on 30 October 2024

December 10, 2024

During the review period (26 June – 18 October 2024), the Hong Kong dollar (HKD) traded within a stable range against the US dollar, supported by reduced carry trades, stronger equity demand, and improved local market sentiment due to Mainland China’s economic stimulus measures. HKD interbank rates mirrored US rates [...]

Expansion of One-Stop Dataset of Physical Banking Facilities of Retail Banks in Hong Kong

December 10, 2024

The Hong Kong Monetary Authority (HKMA) announced the release of a new spatial dataset via Open API, offering details on five types of self-service banking machines from 20 retail banks in Hong Kong. This addition expands HKMA’s banking facility database to three comprehensive datasets, including physical branches and ATMs, which [...]

HKICPA renews MoU with BICPA to strengthen exchanges between the accounting professions in Beijing and Hong Kong

The Hong Kong Institute of Certified Public Accountants (HKICPA) and the Beijing Institute of Certified Public Accountants (BICPA) signed a new three-year Memorandum of Understanding (MoU) to deepen cooperation in member services, professional knowledge exchange, and talent development. The partnership aims to support accounting professionals and firms in both regions [...]

Asian Insurance Forum 2024 to chart a new path amidst global volatility

The Insurance Authority (IA) will host the Asian Insurance Forum (AIF) on 10 December 2024, featuring over 20 industry leaders discussing challenges in the global financial market, including high interest rates, debt sustainability, geopolitical tensions, climate change, and cybersecurity threats. Reflecting the theme “Rising to the Challenge amidst Global Volatility,” [...]

Basel III Final Reform Package – New and Amended Codes of Practice

The Hong Kong Monetary Authority announced that as part of the Basel III final reform implementation, three updated regulatory codes were published in the Gazette and will take effect on 1 January 2025. These include the new Banking (Capital) (Operational Risk) Code, the amended Banking (Exposure Limits) Code, and the [...]

Hong Kong’s Latest Foreign Currency Reserve Assets Figures Released

The Hong Kong Monetary Authority (HKMA) reported that Hong Kong’s official foreign currency reserve assets totaled US$425.1 billion at the end of November 2024, up from US$421.3 billion in October. There were no unsettled foreign exchange contracts at either month-end. The reserves amount to over five times the currency in [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Webinar Materials

Presentation materials from the recent Anti-Money Laundering and Counter-Financing of Terrorism Webinar, hosted by the Securities and Futures Commission (SFC) and the Hong Kong Police Force, are now available on the SFC website. Licensed corporations, SFC-licensed virtual asset service providers, and associated entities are encouraged to download these materials for [...]

Circular in relation to the clearing and record keeping rules for the OTC derivatives regime – changes to the list of persons designated as financial services providers

The revised list of financial services providers (FSPs) under the Securities and Futures (OTC Derivative Transactions—Clearing and Record Keeping Obligations and Designation of Central Counterparties) Rules has been gazetted and will take effect on 1 January 2025. Licensed persons must ensure that OTC derivative transactions exceeding the Clearing Threshold during [...]

Circular to intermediaries: SFC and HKMA joint product survey 2024

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) will conduct the 2024 joint survey on the sale of non-exchange-traded investment products by licensed corporations (LCs) and registered institutions (RIs) engaged in dealing or advising on securities. The survey aims to assess industry practices, monitor market [...]

Revised Supervisory Policy Manual (SPM) Module CA-D-1“Guideline on the Application of the Banking (Disclosure) Rules”

December 6, 2024

The Monetary Authority has issued a revised version of the SPM module CA-D-1, “Guideline on the Application of the Banking (Disclosure) Rules,” as a guidance note. The update incorporates changes to align with the Banking (Disclosure) (Amendments) Rules 2023, effective 1 January 2025. The revised module is accessible on the [...]

Public consultation on proposed enhancements to Banking Ordinance

December 6, 2024

The Hong Kong Monetary Authority (HKMA) launched a public consultation on 5 December to propose enhancements to the Banking Ordinance (Cap. 155) to address evolving banking practices and regulatory needs. Following a review, the HKMA aims to align Hong Kong’s regulatory framework with global standards, improve supervisory capabilities, and address [...]

HKMA and SAMA deepen financial cooperation between Hong Kong and Saudi Arabia

December 6, 2024

The Hong Kong Monetary Authority (HKMA) and the Saudi Central Bank (SAMA) held a bilateral meeting in Hong Kong on 5 December to strengthen cooperation between their financial sectors. Discussions covered financial infrastructure, supervisory technology, global investment opportunities, and economic research. The meeting follows a similar engagement in Riyadh in [...]

ICAC Golden Jubilee: Anti-graft officers commended for outstanding performance and reaching new heights

ICAC Commissioner Woo Ying-ming commended approximately 270 officers for their professionalism and outstanding contributions during the ICAC’s 50th Anniversary Awards Presentation Ceremony. He highlighted significant achievements, including large-scale operations, enhanced international collaboration, and innovative education and prevention initiatives, such as the establishment of the Hong Kong International Academy Against Corruption [...]

AFRC Hosts Landmark Regional Regulatory Forum 2024 to Restore Public Trust in the Accounting and Audit Profession

The Accounting and Financial Reporting Council (AFRC) hosted the inaugural Regional Regulatory Forum (RRF), uniting over 350 participants from global regulators, accounting firms, professional bodies, and investors to discuss the future of the accounting profession. Keynote speakers, including Hong Kong’s Financial Secretary Paul Chan and AFRC Chairman Dr. Kelvin Wong, [...]

Enhancing Customer Empowerment in Anti-Fraud-and-Scam Protection through “Money Safe” Protection and Option of Disabling Internet Banking Platforms

In response to rising fraud and scam cases, the Hong Kong Monetary Authority (HKMA) is introducing “Money Safe” (MS), an extra layer of security allowing customers to protect portions of their bank deposits from fund outflows unless verified by the customer. Retail banks must implement MS for individual customers by [...]

The Seventh Hong Kong-Switzerland Financial Dialogue

The seventh Hong Kong-Switzerland Financial Dialogue, co-organized by the Hong Kong Monetary Authority (HKMA) and Switzerland’s State Secretariat for International Finance (SIF), took place in Hong Kong on December 4. Chaired by HKMA Deputy Chief Executive Darryl Chan and Ambassador Christoph König, the Dialogue aimed to strengthen collaboration in financial [...]

Special Mortgage Scheme for Uncompleted Residential Properties

The Hong Kong Monetary Authority (HKMA) has introduced a one-off special scheme to relax supervisory requirements for property mortgage loans, allowing banks to assist homebuyers of uncompleted residential properties purchased between 2021 and 2023 using stage payment plans. Amid a 25% drop in property prices since their peak, some buyers [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism: Early Alert on United Nations Sanctions

The United Nations Security Council (UNSC) sanctions committee has updated its sanctions list for ISIL (Da’esh) and Al-Qaida, amending details of three individuals on December 2, 2024. Licensed corporations, SFC-licensed virtual asset service providers, and associated entities must update their screening databases accordingly for sanctions compliance. They are reminded to [...]

Hong Kong Institute of Certified Public Accountants Elects President and Vice-Presidents

Following its 52nd annual general meeting, the Hong Kong Institute of Certified Public Accountants (HKICPA) elected Edward Au as President and Stephen Law, JP, and Jasmine Lee as Vice-Presidents for the 2024/25 term. Edward Au, a Deloitte China Managing Partner and HKICPA member since 2019, emphasized strengthening the profession amid [...]

New Supervisory Policy Manual (SPM) Module TM-C-1 on “Supervisory Approach on Cyber Risk Management

The Hong Kong Monetary Authority (HKMA) has issued a new SPM module, TM-C-1, on “Supervisory Approach on Cyber Risk Management” as a statutory guideline under the Banking Ordinance. This module outlines the HKMA’s policy, principles, and supervisory approach for managing cyber risks in light of increasing threats and their potential [...]

Revised Supervisory Policy Manual (SPM) Module CA-G-1 on “Overview of Capital Adequacy Regime for Locally Incorporated Authorized Institutions”

The Hong Kong Monetary Authority has issued a revised version of the SPM module CA-G-1, “Overview of Capital Adequacy Regime for Locally Incorporated Authorized Institutions,” as a statutory guideline under the Banking Ordinance. Effective 1 January 2025, the updates align the module with the latest Basel III capital standards and [...]

Monetary Statistics for October 2024

The Hong Kong Monetary Authority reported that total deposits with authorized institutions were stable in October 2024, with Hong Kong dollar deposits rising by 0.4% and foreign currency deposits falling by 0.3%. Year-to-date, total deposits and Hong Kong dollar deposits grew by 5.8% and 2.8%, respectively. Renminbi deposits dropped by [...]

Residential Mortgage Survey Results for October 2024

The Hong Kong Monetary Authority’s October 2024 residential mortgage survey revealed a 46.5% month-on-month increase in mortgage applications, reaching 7,289. Mortgage loans approved rose 9.5% to HK$19 billion, with loans for secondary market transactions up 14% and refinancing up 21.2%, while primary market financing decreased by 2.4%. Mortgage loans drawn [...]

International Reserves and Foreign Currency Liquidity

The Hong Kong Monetary Authority (HKMA) announced the release of analytical data on Hong Kong’s foreign currency reserves and liquidity as of the end of October 2024. These monthly reports are published in line with the International Monetary Fund’s Special Data Dissemination Standard (SDDS). Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/11/20241129-4/ [...]

HKMA Welcomes Launch of HKUST’s InvestLM Generative A.I. Platform

The Hong Kong Monetary Authority (HKMA) welcomed the launch of the InvestLM Generative AI Platform by HKUST Business School, aimed at supporting local financial institutions, especially SMEs, in adopting Generative AI technologies. Aligned with the government’s policy on responsible AI use, the HKMA encourages banks to utilize InvestLM to enhance [...]

Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) reported that the total assets of the Exchange Fund stood at HK$4,015.0 billion as of October 31, 2024, a decrease of HK$118.8 billion from the previous month. The drop was attributed to a decline in Hong Kong dollar assets (HK$105.0 billion) and foreign currency [...]

HKMA launches Digital Bond Grant Scheme

The Hong Kong Monetary Authority (HKMA) launched the Digital Bond Grant Scheme (DBGS) on November 28, 2024, as announced in the 2024 Policy Address. The DBGS aims to foster the digital securities market and promote tokenization in capital markets by offering grants of up to HK$2.5 million for eligible digital [...]

HKEX Announces Senior Management Changes

Hong Kong Exchanges and Clearing Limited (HKEX) announced senior management changes effective January 1, 2025. Wilfred Yiu, Deputy CEO and Co-COO, will retire at the end of 2024 after nearly six years at HKEX, during which he oversaw key initiatives like the Connect program expansion and severe weather trading. Vanessa [...]

Report on Initial Public Offering Applications, Delisting and Suspensions (November 2024)

The November 2024 report on Initial Public Offering (IPO) applications, delistings, and suspensions by Hong Kong Exchanges and Clearing Limited (HKEX) highlights key regulatory activities. By November 29, there were 2,624 listed companies, with 61 newly listed and 46 delisted in 2024. The Exchange processed 235 IPO applications year-to-date, with [...]

Adjustment of PA GOODDOCTOR Structured Products, Futures and Options

Hong Kong Exchanges and Clearing Limited (HKEX) has announced adjustments to structured products, futures, and options related to Ping An Healthcare and Technology Company Limited (PA GOODDOCTOR) following its special dividend issuance of HK$9.7 per share, with an ex-date of December 6, 2024. Structured product issuers will announce adjustments to [...]

SFC-backed launch event garners broad industry support for voluntary code of conduct for ESG ratings and data products providers

The Securities and Futures Commission (SFC) joined over 200 financial industry participants to launch Hong Kong’s voluntary code of conduct (VCoC) for ESG ratings and data product providers, aimed at improving transparency and quality of ESG information in the financial market. Five providers have expressed intentions to adopt the VCoC [...]

Adjustment of China Tower Structured Products, Futures and Options

November 27, 2024

Hong Kong Exchanges and Clearing Limited (HKEX) announced adjustments to structured products, futures, and options for China Tower Corporation Limited (China Tower) to reflect its share consolidation and capital reduction, effective February 20, 2025. The corporate action consolidates every ten existing shares into one consolidated and reduced share. Structured product [...]

HKMA welcomes completion of migration of consumer credit reference services to Credit Data Smart

November 26, 2024

The Hong Kong Monetary Authority (HKMA) has announced the successful migration of consumer credit reference services to Credit Data Smart, a move welcomed by industry associations. This milestone aims to enhance competition, improve service quality, and reduce the risks associated with relying on a single credit reference agency. The HKMA [...]

Circular to Intermediaries: Guidance to asset managers regarding due diligence expectations for third-party ESG ratings and data products providers

November 26, 2024

The Securities and Futures Commission (SFC) has emphasized that asset managers frequently rely on ESG ratings and data products from third-party providers to support investment decisions and risk management. However, concerns about data quality, transparency, and conflicts of interest necessitate that asset managers exercise due diligence and ongoing assessments when [...]

HKEX Appoints Group Chief Sustainability Officer and Group Chief Communications Officer

November 25, 2024

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the appointments of Paul Chow as Group Chief Sustainability Officer and Jeffrey Ng as Group Chief Communications Officer, effective January 1, 2025. Chow will oversee sustainability strategies, ESG integration, and HKEX’s Core Climate carbon marketplace while continuing as Group General Counsel. [...]

SFC and CSRC top management meet in Hong Kong

November 25, 2024

On November 19, 2024, SFC Chairman Dr. Kelvin Wong and CEO Ms. Julia Leung met with CSRC Chairman Mr. Wu Qing in Hong Kong to discuss capital market developments and mutual market access schemes. They reviewed recent cooperative achievements and agreed to enhance regulatory and enforcement collaboration to support the [...]

SFC hosts workshops to further engage the industry

November 25, 2024

The Securities and Futures Commission (SFC) held two workshops this week for over 200 industry participants to enhance understanding of its digitalized licensing process and trends in licensing activities. The sessions focused on features of the SFC’s electronic platform, WINGS, key issues in licensing compliance, and shifting dynamics in the [...]

HKICPA’s Awards commend the CG and ESG performances of awardees, while urging continuing efforts to uphold high-quality governance and disclosure standards in Hong Kong

November 22, 2024

The Hong Kong Institute of Certified Public Accountants (HKICPA) announced the winners of its 25th Best Corporate Governance and ESG Awards, recognizing a record 38 companies and public sector organizations for their excellence in corporate governance (CG) and environmental, social, and governance (ESG) practices. This year saw five first-time awardees [...]

Enhanced Competency Framework on Green and Sustainable Finance (Professional Level)

November 22, 2024

The Hong Kong Monetary Authority (HKMA) has launched the Professional Level of the Enhanced Competency Framework on Green and Sustainable Finance (ECF-GSF), aimed at middle and senior-level banking practitioners. This level builds on the Core Level introduced in July 2023 for junior staff, providing specialized knowledge and competencies in green [...]

Implementation of Basel III final reform package: Supervisory highlights

November 22, 2024

The Hong Kong Monetary Authority (HKMA) is actively supporting the financial industry in preparing for the implementation of the Basel III final reform package (B3F), which will take effect on January 1, 2025. The HKMA has engaged in extensive consultations with authorized institutions (AIs), offering guidance and prioritizing resources to [...]

Tender results of 1-year HONIA-indexed Floating Rate Notes

November 21, 2024

The Hong Kong Monetary Authority (HKMA) announced a successful tender for HK$1.5 billion in 1-year HONIA-indexed Floating Rate Notes under the Infrastructure Bond Programme on November 20. The tender received HK$4.095 billion in applications, resulting in a bid-to-cover ratio of 2.73. The highest spread accepted was 0.22% Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/11/20241120-4/ [...]

Conclusion of “Conversations with Global Investors” Seminar of Global Financial Leaders’ Investment Summit

November 21, 2024

The “Conversations with Global Investors” forum, held on 20 November 2024, concluded the three-day Global Financial Leaders’ Investment Summit in Hong Kong, attracting over 280 financial leaders. Discussions focused on navigating market changes, long-term asset allocation, and the impact of technological transformation on investments. Key insights included opportunities in alternative [...]

Composite Interest Rate: End of October 2024

The Hong Kong Monetary Authority (HKMA) reported a decrease in the composite interest rate to 2.30% at the end of October 2024, down from 2.35% in September 2024. This decline was primarily due to a reduction in the weighted funding cost for deposits. Historical data on the composite interest rate [...]

The HKMA hosts the third Global Financial Leaders’ Investment Summit

The Global Financial Leaders’ Investment Summit, organized by the Hong Kong Monetary Authority (HKMA), concluded on November 19, 2024, with around 300 global and regional leaders from over 120 financial institutions. The event, themed “Sailing through changes,” focused on the challenges and opportunities arising from macroeconomic shifts, geopolitics, technological innovation, [...]

All licensed corporations, licensed representatives and registered institutions within the meaning of the Securities and Futures Ordinance (Cap. 571) or relevant individuals within the meaning of section 20(10) of the Banking Ordinance (Cap. 155)

On November 15, 2024, the Securities and Futures Commission (SFC) issued a “cold shoulder order” against Ms. Zuo Ping, prohibiting her from engaging in certain financial activities for a six-year period, ending November 14, 2030. The order restricts licensed corporations, representatives, and relevant individuals from acting for Ms. Zuo or [...]

SFC and NFRA top management met in Hong Kong

Securities and Futures Commission (SFC) Chairman Dr. Kelvin Wong and CEO Ms. Julia Leung met with Mr. Li Yunze, Minister of the National Financial Regulatory Administration (NFRA), in Hong Kong. They discussed the current state of Mainland and Hong Kong financial markets and exchanged views on strengthening cross-boundary regulatory cooperation [...]

HKEX Collaborates with Hang Seng Indexes Company to Launch Hang Seng HKEX Stock Connect China Enterprises Index

Hong Kong Exchanges and Clearing Limited (HKEX) has partnered with Hang Seng Indexes Company Limited (HSIL) to launch the Hang Seng HKEX Stock Connect China Enterprises Index (SCCEA Index) on November 21, 2024. This new index will track the 80 largest Chinese companies by market capitalization listed on the Hong [...]

New Supervisory Policy Manual (SPM) Module MB-1 on “Risk-based Supervision of Approved Money Brokers”

The Hong Kong Monetary Authority (HKMA) has issued a new Supervisory Policy Manual (SPM) module on “Risk-based Supervision of Approved Money Brokers” (AMBs) following consultations with the Hong Kong Inter-Dealer Brokers Association and AMBs. The module, which is now effective, codifies existing requirements and standards for AMBs, incorporating guidelines from [...]

Tentative issuance schedule for Exchange Fund Bills and Notes

The Hong Kong Monetary Authority (HKMA) has released a tentative issuance schedule for Exchange Fund Bills and Notes (EFBNs) for the January to March 2025 quarter. The schedule includes projected tender dates, issue sizes, and issue dates, which will reflect rollover of maturing issues and adjustments to the EFBN portfolio’s [...]

Alert: Misrepresentation and misuse of the word “bank” in Hong Kong by crypto firms

The Hong Kong Monetary Authority (HKMA) has issued a warning about overseas crypto firms that falsely represent themselves as banks or use the word “bank” in their product descriptions, even though they are not licensed banks in Hong Kong. Such actions may violate the Banking Ordinance, which restricts the use [...]

SME Financing Guarantee Scheme Enhancements to Take Effect

HKMC Insurance Limited has announced enhancements to the SME Financing Guarantee Scheme (SFGS), effective from 18 November 2024. These measures include a 12-month principal moratorium for both existing and new loans, available until 17 November 2025. Additionally, the loan guarantee periods for the 80% and 90% Guarantee Products will be [...]

Analytical Accounts of the Exchange Fund

November 15, 2024

The Hong Kong Monetary Authority (HKMA) reported that, as of October 2024, the Exchange Fund’s foreign assets declined by HK$10.4 billion to HK$3,475.5 billion. The Monetary Base totaled HK$1,937.7 billion, including various currency notes, coins, and Exchange Fund Bills. Claims on Hong Kong’s private sector reached HK$288.4 billion, while foreign [...]

The People’s Bank of China will issue Renminbi Bills through Central Moneymarkets Unit of Hong Kong Monetary Authority

November 15, 2024

The People’s Bank of China (PBOC) will conduct a tender for three-month and one-year RMB Bills on November 20, 2024, with settlement on November 22, 2024. A total of RMB 30 billion in three-month Bills and RMB 15 billion in one-year Bills will be available for competitive bidding through the [...]

Tender of 2-Year Exchange Fund Notes to be held on 22 November 2024

November 14, 2024

The Hong Kong Monetary Authority (HKMA) will conduct a tender for 2-year Exchange Fund Notes on November 22, 2024, to roll over maturing notes. A total of HK$1,200 million in notes will be offered, with HK$5 million set aside for public non-competitive bids via the Hong Kong Securities Clearing Company [...]

Asian Insurance Forum 2024 to offer insightful perspectives as top-notch experts navigate challenges amidst global volatility

November 13, 2024

The Insurance Authority’s (IA) Asian Insurance Forum (AIF) 2024 will take place on December 10, under the theme “Rising to the Challenge amidst Global Volatility.” The event will feature prominent speakers from the insurance and financial sectors, including Hong Kong’s Chief Executive, Mr. John Lee, and Financial Secretary, Mr. Paul [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Early Alert on United Nations Sanctions

November 13, 2024

On November 8, 2024, the United Nations Security Council (UNSC) added two individuals to its sanctions list for Sudan. Licensed corporations, SFC-licensed virtual asset service providers, and related entities are advised to update their screening databases accordingly for customer and payment sanctions checks. They are also reminded to review the [...]

Circular to licensed corporations: Use of generative AI language model

November 13, 2024

The Securities and Futures Commission (SFC) has issued guidance on the responsible use of generative AI language models (AI LMs) by licensed corporations (LCs) in the financial sector. While AI LMs can enhance efficiency in client interactions and operations, they also introduce risks, including inaccuracies, biases, over-reliance on outputs, cybersecurity [...]

HKMA and Multilateral Organisations Enhance Strategic Partnership for Climate Investment in Asia

November 12, 2024

The Hong Kong Monetary Authority (HKMA) has partnered with multilateral organizations, including the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and the International Finance Corporation (IFC), to advance sustainable finance in Asia. This collaboration, announced at the Asia Climate Investment Seminar on November 11, aims to address climate [...]

HKMA, Cyberport and banking sector co-organise “SME Digital Technology Solution Day”

November 12, 2024

The Hong Kong Monetary Authority (HKMA), Cyberport, the Hong Kong Association of Banks, and the Chinese Banking Association of Hong Kong co-organized the SME Digital Technology Solution Day on November 11, bringing together over 100 participants from SMEs in the food and beverage and retail sectors, banks, and technology providers. [...]

AFRC welcomes appointment of Chairman

The Accounting and Financial Reporting Council (AFRC) has announced the appointment of Dr. David Sun Tak-kei as its new Chairman for a two-year term, starting 1 January 2025. He will succeed Dr. Kelvin Wong, who served as Chairman for six years and will step down at the end of 2024. [...]

Insurance Authority warns against phishing emails and fraudulent website

The Insurance Authority (IA) has warned the public about phishing emails from the domain “my.beacons[.]email,” which contain a link redirecting to a fraudulent website claiming to be AIA International Limited’s official site. These emails aim to steal customers’ login details. AIA has confirmed no connection to the phishing attempt. The [...]

Cooling-off Period for Unsecured Consumer Credit Products

The Hong Kong Monetary Authority (HKMA) has mandated that retail banks, including digital banks, offer a cooling-off period for all unsecured consumer credit products to promote responsible borrowing. This cooling-off period, lasting at least 7 days after loan drawdown, allows customers to repay the full principal without incurring any fees [...]

Tender of 10-year RMB HKSAR Institutional Government Bonds to be held on Thursday, 14 November 2024

The Hong Kong Monetary Authority (HKMA) announced a tender for 10-year RMB Institutional Government Bonds under the Infrastructure Bond Programme, scheduled for 14 November 2024, with settlement on 18 November 2024. A total of RMB1.5 billion in bonds will be issued, maturing on 20 November 2034, with a 2.46% annual [...]

Tender of 2-year RMB HKSAR Institutional Government Bonds to be held on Thursday, 14 November 2024

The Hong Kong Monetary Authority (HKMA) announced that it will hold a tender for 2-year RMB Institutional Government Bonds under the Infrastructure Bond Programme on 14 November 2024, with settlement on 18 November 2024. A total of RMB 1 billion in bonds, maturing on 18 November 2026 and offering an [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism(1) FATF Statement on High-Risk Jurisdictions subject to a Call for Action(2) FATF Statement on Jurisdictions under Increased Monitoring(3) Outcomes from the FATF Plenary, 23-25 October 2024

The Securities and Futures Commission (SFC) has issued a circular regarding Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) updates from the Financial Action Task Force (FATF). Key points include: the FATF’s call for enhanced due diligence or countermeasures against high-risk jurisdictions like North Korea and Iran, and the inclusion [...]

Inaugural “Integrity Management Award” by ICAC and CIC encourages contractors to strengthen integrity management

The ICAC, in collaboration with the Construction Industry Council (CIC), launched the “Integrity Management Award” at the 2024 Outstanding Contractor Award to encourage better integrity management and corruption prevention in the construction sector. At the award ceremony on November 6, China State Construction Engineering (Hong Kong) Limited and Gammon Construction [...]

Hong Kong’s Latest Foreign Currency Reserve Assets Figures Released

As of October 2024, Hong Kong’s official foreign currency reserve assets totaled US$421.4 billion, slightly down from US$422.8 billion in September. These reserves are more than five times the currency in circulation and represent about 39% of Hong Kong dollar M3. There were no unsettled foreign exchange contracts at the [...]

Adjustment of Base Rate

The Hong Kong Monetary Authority (HKMA) announced that the Base Rate has been set at 5%, effective immediately, based on a pre-determined formula. This rate is calculated as either 50 basis points above the lower end of the US federal funds target range or the average of the five-day moving [...]

HKMA’s Response to US Fed’s Interest Rate Decision

The Federal Reserve has lowered the federal funds rate by 0.25% to 4.5-4.75%, while the Hong Kong Monetary Authority (HKMA) reduced its Base Rate to 5%. The Fed’s rate cut aims to ease monetary policy, but future cuts depend on US economic data and global economic factors. Despite these changes, [...]

Insurance Authority warns against an unauthorized company with insurance-related name

November 7, 2024

The Insurance Authority (IA) has issued a warning about “Marble Insurance Services Limited,” which falsely claims to be a general insurer in Hong Kong without the IA’s consent. This company is not authorized to conduct insurance business or regulated activities in Hong Kong. The IA advises anyone who has shared [...]

Payment Card Direct Debit Authorisation

November 6, 2024

The Hong Kong Monetary Authority (HKMA) outlines expectations for Card Issuing Banks and Merchant Acquiring Banks regarding payment card direct debit authorizations (DDA) when merchants suspend or close their businesses. Consumer protection is the primary focus, with specific guidelines for banks to assist cardholders. Card Issuing Banks must ensure effective [...]

Hong Kong Academy of Finance’s 2025 intake of the Financial Leaders Programme is open for application

November 6, 2024

The Hong Kong Academy of Finance (AoF) has opened applications for the 2025 intake of its Financial Leaders Programme (FLP), designed for promising financial professionals two levels below CEO. The nine-month, part-time program, which starts in April 2025, offers participants the opportunity to develop a strategic mindset through high-level dialogues [...]

HKEX to Digitalise ETP Servicing Capabilities with Online Platform

November 5, 2024

Hong Kong Exchanges and Clearing Limited (HKEX) plans to digitize and automate the in-kind creation and redemption process for exchange-traded products (ETPs) in 2025 through a web-based platform. This platform will use Distributed Ledger Technology (DLT) and smart contracts to enhance market efficiency, streamline operations, and increase liquidity, supporting the [...]

Survey on Small and Medium-Sized Enterprises (SMEs)’ Credit Conditions for Third Quarter 2024

November 5, 2024

The Hong Kong Monetary Authority (HKMA) released the results of its third-quarter 2024 survey on Small and Medium-Sized Enterprises (SMEs) credit conditions, revealing a slight improvement. Seventy-six percent of SMEs reported that banks’ credit approval stance was either “similar” or “easier,” up from 73% in the previous quarter. Additionally, only [...]

SFC hosts forum to encourage responsible Regtech adoption for anti-money laundering and counter-financing of terrorism

November 5, 2024

The Securities and Futures Commission (SFC) hosted the “SFC AML/CFT Regtech Forum 2024,” bringing together over 300 government officials, industry leaders, and experts to discuss the role of regulatory technology (Regtech) in combating money laundering and terrorist financing. SFC CEO Julia Leung emphasized the importance of adopting Regtech to improve [...]

SFC unveils first batch of brokers joining Wealth Management Connect Pilot Scheme

November 4, 2024

The Securities and Futures Commission (SFC) announced that 14 licensed corporations are eligible to participate in the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area. These firms will provide cross-border investment services in collaboration with approved Mainland partner brokers. SFC CEO Julia Leung highlighted this [...]

AFRC issues 2023-24 Annual Report

The Accounting and Financial Reporting Council (AFRC) has released its 2023-24 Annual Report, detailing its achievements from April 2023 to March 2024. The report emphasizes the AFRC’s effectiveness in regulatory outcomes through its five pillars: Dialogue, Understanding, Collaboration, Law and Governance, and Thought Leadership. The organization has balanced its roles [...]

Report on Initial Public Offering Applications, Delisting and Suspensions (October 2024)

The monthly report outlines key statistics related to regulatory oversight during the reporting period, including application processing and the status of listed companies. As of October 31, 2024, there are 2,623 listed companies, with 54 newly listed and 40 delisted during the year. A total of 221 initial public offerings [...]

HKMA and BIS co-host international financial conference

The Hong Kong Monetary Authority (HKMA) and the Bank for International Settlements (BIS) successfully concluded an international financial conference on October 31, focusing on “Opportunities and Challenges of Emerging Technologies in the Financial Ecosystem.” Building on last year’s inaugural event, this conference gathered over 100 representatives from various sectors, including [...]

Granting of banking licences

On October 31, 2024, the Hong Kong Monetary Authority granted banking licenses to Guanyin International Limited and KGI Bank Co., Ltd., increasing the total number of licensed banks in Hong Kong to 151. Guanyin International is a wholly-owned subsidiary of Bank of Dongguan Co., Ltd., while KGI Bank is incorporated [...]

Monetary Statistics for September 2024

As of October 31, 2024, the Hong Kong Monetary Authority reported a 0.8% increase in total deposits for September, with Hong Kong dollar and foreign currency deposits rising by 0.9% and 0.6%, respectively. Year-over-year, total deposits grew by 5.8%. Renminbi deposits reached RMB1,016.3 billion, while cross-border trade remittances were slightly [...]

International Reserves and Foreign Currency Liquidity

On October 31, the Hong Kong Monetary Authority (HKMA) published analytical data on the region’s foreign currency reserves and liquidity as of September 2024. This information is released monthly and aligns with the International Monetary Fund’s Special Data Dissemination Standard (SDDS). Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/10/20241031-4/ [...]

Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority reported that as of September 30, 2024, the total assets of the Exchange Fund reached HK$4,133.9 billion, a HK$152.4 billion increase from August. This rise was driven by HK$113.9 billion in Hong Kong dollar assets, primarily from unsettled Exchange Fund Bills and mark-to-market gains in [...]

PIF and Hong Kong Monetary Authority sign memorandum of understanding for investment fund at FII8

On October 31, the Public Investment Fund (PIF) of Saudi Arabia and the Hong Kong Monetary Authority (HKMA) signed a memorandum of understanding to establish a new investment fund with a target size of $1 billion. This fund aims to invest in manufacturing, renewables, fintech, and healthcare, promoting local job [...]

SFC concludes consultation on market sounding guidelines

The Securities and Futures Commission (SFC) has released consultation conclusions on new guidelines for market soundings, which are primarily used in block trades. These guidelines establish principles for licensed individuals to safeguard confidential information during such soundings, aiming to uphold market integrity and prevent the misuse of client information. Respondents [...]

Overview of the non-public interest entity audit market

October 31, 2024

The AFRC has released an Overview of the Non-Public Interest Entity (non-PIE) audit market in Hong Kong, highlighting the market share, workload, and expectations for high-quality audit services. An inspection of 4,713 practice units (PUs) revealed that Category E PUs hold the largest share of the non-PIE market, while Category [...]

HKEX to Open Office in Riyadh to Expand Middle East Presence

October 31, 2024

Hong Kong Exchanges and Clearing Limited (HKEX) has announced plans to open an office in Riyadh in 2025 to enhance its presence in the Middle East and promote connectivity between China and the Gulf region. The new office aims to connect with local investors and companies, offering support to access [...]

SFC furthers Hong Kong-Saudi Arabia capital market ties on Riyadh visit

October 31, 2024

Securities and Futures Commission (SFC) CEO Julia Leung and senior delegates recently visited Riyadh to enhance regulatory collaboration with Saudi Arabia’s Capital Market Authority (CMA) and Saudi Tadawul Group. They witnessed the cross-listing of two Hong Kong exchange-traded funds (ETFs) on the Saudi Exchange, marking a significant milestone in capital [...]

ICAC Commissioner and delegation in Kazakhstan to attend Central Asia anti-corruption conference

October 30, 2024

An ICAC delegation, led by Commissioner Woo Ying-ming, arrived in Kazakhstan on October 29 to participate in an anti-corruption conference aimed at enhancing regional cooperation against corruption in Central Asia. Woo will speak at the First Annual Conference of the Regional Platform for Fast-Tracking the Implementation of the UN Convention [...]

AFRC Reinforces Commitment to Financial Reporting Integrity in Hong Kong

October 30, 2024

The Accounting and Financial Reporting Council (AFRC) is committed to improving financial reporting integrity in Hong Kong, particularly concerning “bogus CPAs.” Although no specific cases have been reported, quality issues persist, with some accountants carelessly signing audit reports. To combat this, the AFRC, in collaboration with other financial bodies, is [...]

Insurance Authority shares regulatory insights at the Hong Kong FinTech Week

October 30, 2024

On October 29, 2024, the Insurance Authority (IA) launched the InsurTech Forum in collaboration with Invest Hong Kong during FinTech Week 2024, aimed at facilitating dialogue among industry leaders and tech experts. CEO Clement Cheung emphasized the urgent need to address climate change and cybersecurity risks while discussing initiatives like [...]

Cross-straits, Hong Kong and Macau Accounting Profession Conference 2024: Embrace the new mission: Leading to a sustainable future

October 29, 2024

The “Cross-straits, Hong Kong and Macau Accounting Profession Conference 2024,” organized by the Hong Kong Institute of Certified Public Accountants, was held at the JW Marriott Hotel in Hong Kong, focusing on “Leading a Sustainable Future.” The conference gathered nearly 400 participants, including key business and accounting leaders, to discuss [...]

HKEX to Launch HKEX Virtual Asset Index Series

October 29, 2024

Hong Kong Exchanges and Clearing Limited (HKEX) will launch the HKEX Virtual Asset Index Series on November 15, 2024, providing benchmarks for Bitcoin and Ether pricing tailored to the Asian market. This initiative aims to support Hong Kong’s status as a leading digital assets hub by offering transparent, reliable pricing [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of TerrorismAnti-Money Laundering and Counter-Financing of Terrorism Webinar

October 29, 2024

The Securities and Futures Commission (SFC) will host two webinars on anti-money laundering and counter-financing of terrorism (AML/CFT) on November 25 and 26, 2024, via Zoom. The sessions aim to discuss the current state of AML/CFT Regtech adoption, supervisory observations, and money laundering typologies in the securities sector. Relevant management [...]

HKEX Welcomes Hong Kong Government Appointment to its Board

Hong Kong Exchanges and Clearing Limited (HKEX) announced the appointment of Mr. Herbert Chia to its Board of Directors, effective October 29, 2024, with a term ending at the 2026 Annual General Meeting. HKEX Chairman Carlson Tong expressed confidence in Chia’s expertise in digital transformation and analytics, highlighting its importance [...]

Hong Kong FinTech Week 2024

The Hong Kong Monetary Authority (HKMA) co-hosted Hong Kong FinTech Week 2024, attracting global participants to discuss financial innovation. Chief Executive Eddie Yue emphasized the importance of digital transformation, announcing several initiatives under Project Ensemble to advance asset tokenization and cross-border payments, including collaborations with Brazil and Thailand. The HKMA [...]

HKMA designates Primary Liquidity Providers and expands Scheme

On October 25, 2024, the Hong Kong Monetary Authority (HKMA) announced the designation of eleven banks as Primary Liquidity Providers (PLPs) for the offshore renminbi (RMB) market, effective from October 27. The selected banks, which include major institutions like Agricultural Bank of China and Citibank, were chosen based on their [...]

Supervisory Policy Manual (SPM): Revised module TM-E-1 on “RiskManagement of E-banking”

The Hong Kong Monetary Authority (HKMA) is issuing a revised version of the SPM module TM-E-1 “Risk Management of E-banking” as a statutory guideline, effective October 25, 2024. This update follows consultations with industry associations and aims to enhance the supervision of e-banking and payment card services. Key changes include [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of TerrorismUnited Nations Sanctions (South Sudan) Regulation 2019 (Amendment) Regulation 2024

The United Nations Sanctions (South Sudan) Regulation 2019 was amended by the South Sudan Amendment Regulation 2024, published on October 25, 2024, with immediate effect. This amendment implements sanctions from UN Security Council Resolution 2731, including an arms embargo, travel bans, and financial sanctions. Licensed corporations and SFC-licensed virtual asset [...]

Circular to management companies of SFC-authorized unit trusts and mutual funds – enhanced fund data reporting

The Securities and Futures Commission (SFC) will update its requirements for enhanced fund data reporting for SFC-authorized funds, effective January 31, 2025, superseding previous circulars from 2018 and 2021. The new requirements will establish periodic reporting obligations in areas such as subscription and redemption (monthly), liquidity profiles (quarterly), asset allocation [...]

Encouraging progress made in asset management pilot use case in the Project Ensemble Sandbox

The Securities and Futures Commission (SFC) has announced a significant advancement in asset management with the successful simulation of a tokenized money market fund (MMF) by a local bank participating in the Project Ensemble Sandbox. This pilot involved the delivery-versus-payment settlement of tokenized deposits, covering subscription, redemption, and trading for [...]

SFC sets out vision to foster a vibrant fintech ecosystem in Hong Kong

The Securities and Futures Commission (SFC) of Hong Kong is promoting a healthy fintech ecosystem, particularly in the virtual asset market, through various initiatives. At Fintech Week 2024, Dr. Eric Yip outlined plans for a swift licensing process for virtual asset trading platforms (VATPs), expecting the first licenses to be [...]

ICAC hosts Corruption Prevention Seminar for Internal Auditors of B/Ds to enhance corruption prevention capability

Sixty internal auditors from 25 government departments attended an ICAC Corruption Prevention Seminar on October 24, aimed at enhancing their awareness of corruption-prone procedures and strengthening the government’s anti-corruption capabilities. Assistant Director Kate Cheuk highlighted the role of internal audits in improving risk management and governance while identifying potential corruption [...]

Revised Pillar 3 Disclosure Package

The Monetary Authority is issuing a revised package of standard disclosure templates and tables for authorized institutions, aligned with Basel III capital standards, effective January 1, 2025. This updated package includes new and revised templates, aimed at improving clarity and consistency with current disclosure requirements. Institutions must use this package [...]

Revised standard LAC disclosure template and updated Code of Practice chapter LAC-1 “Resolution Planning – LAC Requirements”

The Monetary Authority (MA) is issuing a revised standard LAC disclosure template, Template CCA(A), to enhance clarity for resolution entities and material subsidiaries regarding their regulatory capital and non-capital LAC debt instruments. This update, effective from January 1, 2025, aligns with changes to the Banking (Disclosure) Rules. Additionally, an updated [...]

Circular on full adoption of e-IP application/submission system on WINGS

The Securities and Futures Commission (SFC) has announced a one-month extension of the parallel run period for its new online application/submission system for investment products, e-IP, now set to end on 29 November 2024. Starting 30 November 2024, all applications and submissions must be made via e-IP. Launched on 29 [...]

SFC engages securities industry on regulatory trends and market development

The Securities and Futures Commission (SFC) held a seminar with over 200 financial sector representatives to discuss key challenges and opportunities in Hong Kong’s capital markets. The SFC highlighted its efforts to promote growth and stability, including updates on virtual assets and RMB fixed-income instruments. Participants engaged in dialogue about [...]

Tender results of 3-year HKD HKSAR Institutional Government Bonds

October 24, 2024

The Hong Kong Monetary Authority (HKMA) announced the results of a tender for 3-year HKD institutional Government Bonds held on October 23, 2024, under the Infrastructure Bond Programme. A total of HK$5.5 billion in bonds was offered, receiving applications totaling HK$21.375 billion, resulting in a bid-to-cover ratio of 3.89. The [...]

SFC welcomes Process Review Panel Report 2023-24

October 23, 2024

The Securities and Futures Commission (SFC) has welcomed the 2023-24 annual report from the Process Review Panel (PRP), which includes observations and recommendations from a review of 60 cases. These suggestions aim to enhance the SFC’s regulatory effectiveness while ensuring fairness in the financial market. SFC CEO Ms. Julia Leung [...]

AFRC highlights impact of current economic conditions on financial reporting and audit practices

The Accounting and Financial Reporting Council (AFRC) has released a report on the effects of current economic conditions on financial reporting and audit practices for Hong Kong-listed companies. The report emphasizes that economic factors influence business strategies and may lead to earnings management, which misrepresents financial situations. It stresses the [...]

Tentative Issuance Schedule for HKSAR Institutional Government Bonds and Appointment of Primary Dealers under Infrastructure Bond Programme and Government Sustainable Bond Programme

The Hong Kong Monetary Authority (HKMA) announced a tentative issuance schedule for institutional Government Bonds (GBs) under the Infrastructure Bond Programme (IBP) and Government Sustainable Bond Programme (GSBP) for the period from October 2024 to March 2025. The bonds, denominated in Hong Kong dollars and Renminbi, will be offered through [...]

HKMA unveils Sustainable Finance Action Agenda

On October 21, the Hong Kong Monetary Authority (HKMA) launched the Sustainable Finance Action Agenda to reinforce Hong Kong’s status as a sustainable finance hub and support broader sustainable development in Asia. The Agenda outlines eight goals across four areas: achieving net zero emissions in banking operations, investing sustainably, establishing [...]

Government announces subscription and allocation results of Silver Bond

The Government announced the results of the latest Silver Bond subscription, revealing 300,413 valid applications totaling approximately HK$69.98 billion. The final issuance will be HK$55 billion, exceeding the HK$50 billion target. Allocation follows a structured mechanism, with applications for 23 units or fewer receiving full amounts, while those requesting more [...]

SFC fast-tracks simple fund authorisation to bolster Hong Kong market appeal

The Securities and Futures Commission (SFC) will launch the Fund Authorisation Simple Track (FASTrack) on November 4, 2024, to expedite the processing of applications for simple investment funds. Under FASTrack, the SFC aims to authorize funds within 15 business days, focusing on jurisdictions with mutual recognition of funds arrangements. This [...]

CMU OmniClear Limited and SIX Sign MOU to Unlock Further Cross-border Investment Opportunities

October 21, 2024

CMU OmniClear Limited, a subsidiary of the Hong Kong Monetary Authority, and SIX have signed a Memorandum of Understanding to enhance cooperation in securities depository and settlement, aiming to promote cross-border investment. The partnership will facilitate international securities settlement and safekeeping, fostering closer collaboration and information exchange. Both CEOs emphasized [...]

Joint Statement on Enhanced Timeframe for New Listing Application Process

October 21, 2024

The Securities and Futures Commission (SFC) and The Stock Exchange of Hong Kong Limited have announced an Enhanced Application Timeframe for New Listing applications to bolster Hong Kong’s status as a premier international listing venue. This initiative aims to improve clarity and efficiency in the application process, allowing applications that [...]

Basel III implementation

The revised Basel III capital standards will take effect on January 1, 2025, prompting the HKMA to adjust how locally incorporated authorized institutions (AIs) calculate regulatory capital for small and medium-sized enterprises (SMEs) and residential mortgage loans. AIs may apply a new 85% risk weight for non-retail SME exposures and [...]

HKMC’s Social Bond Issuance

The Hong Kong Mortgage Corporation Limited (HKMC) announced its third social bond issuance, raising approximately HK$23.8 billion (US$3 billion), marking the largest social bond issuance in the Asia Pacific to date. This issuance, completed on October 9, 2024, includes four tranches in multiple currencies and was highly successful, with a [...]

Composite Interest Rate: End of September 2024

On October 17, 2024, the Hong Kong Monetary Authority (HKMA) reported that the composite interest rate decreased by 17 basis points to 2.35% at the end of September 2024, down from 2.52% in August. This decline was primarily due to a reduction in the weighted funding cost for deposits. Historical [...]

HKMA introduces multiple measures to support SMEs’ development, upgrade and transformation

On October 18, the Hong Kong Monetary Authority (HKMA) and the banking sector announced new measures to support the development of small and medium-sized enterprises (SMEs). Since March, around 20,000 SMEs have benefited from HKMA’s nine support measures, with a total credit limit exceeding HK$44 billion. The HKMA plans to [...]

SFC welcomes appointment and re-appointment of Non-Executive Directors

The Securities and Futures Commission (SFC) has welcomed Mr. Keith Pogson as a new Non-Executive Director and re-appointed Mr. Chew Fook-aun for a two-year term. SFC Chairman Tim Lui emphasized Pogson’s expertise in accounting and financial services as valuable assets for the board, while also expressing appreciation for Fook-aun’s continued [...]

Countercyclical Macroprudential Measures for Property Mortgage Loans

October 17, 2024

On October 16, 2024, the Hong Kong Monetary Authority (HKMA) issued guidelines to adjust countercyclical macroprudential measures for property mortgage loans, following improved market sentiment after the government removed demand-side management measures. Despite an initial rise in housing transactions, volumes fell back, and residential property prices dropped 6.2% in early [...]

Enhancements to SME Financing Guarantee Scheme

October 17, 2024

In the 2024 Policy Address, the Chief Executive announced new measures to support borrowing enterprises under the SME Financing Guarantee Scheme. These include a principal moratorium of up to 12 months for both existing and new loans. The maximum loan guarantee periods will be extended to ten years for the [...]

SFC welcomes Chief Executive’s measures to boost Hong Kong capital markets

October 17, 2024

The Securities and Futures Commission (SFC) supports the initiatives outlined in the Chief Executive’s Policy Address aimed at strengthening Hong Kong’s status as a global financial center. Key strategies include enhancing market access, developing offshore renminbi (RMB) infrastructure, attracting listings from leading enterprises, optimizing listing procedures, and fostering a fintech [...]

Consultation conclusions on proposed renaming of Virtual Bank

October 15, 2024

On October 14, the Hong Kong Monetary Authority (HKMA) released its Conclusions Paper regarding the public consultation on renaming “Virtual Bank” to “Digital Bank.” The consultation garnered 26 submissions, with broad support for the new name from various stakeholders. The HKMA plans to update its guidelines to reflect this change [...]

Analytical Accounts of the Exchange Fund

October 15, 2024

On October 14, 2024, the Hong Kong Monetary Authority (HKMA) published the analytical accounts of the Exchange Fund for September 2024. Key highlights include a decrease in foreign assets by HK$21.4 billion, totaling HK$3,485.9 billion. The Monetary Base stood at HK$1,941.4 billion, with claims on the private sector at HK$293.4 [...]

SFC welcomes appointment of Chairman

October 15, 2024

The Securities and Futures Commission (SFC) has announced the appointment of Dr. Kelvin Wong Tin-yau as its new Chairman, effective 20 October 2024, succeeding Mr. Tim Lui, who has served for six years. Mr. Lui praised Dr. Wong’s extensive experience in capital market regulation and his previous roles with the [...]

ICAC to commence annual household survey next week to gauge public views on graft-fighting work

The ICAC will launch its annual opinion survey on October 14 to assess public attitudes toward corruption and the integrity of society, coinciding with its 50th anniversary. The survey will run until December and involve approximately 1,500 randomly selected residents aged 15 to 74, with face-to-face interviews lasting 10 to [...]

Standing Committee on Company Law Reform publishes annual report

The Standing Committee on Company Law Reform (SCCLR) released its 2023-24 annual report, highlighting its consultation with the government on promoting paperless corporate communication for Hong Kong companies. The SCCLR also conducted a seminar on company re-domiciliation. The government, acknowledging the SCCLR’s input, is drafting an Amendment Bill aimed at [...]

Enhancement measures for online payment card transactions

The Hong Kong Monetary Authority (HKMA) has issued guidance for authorized institutions (AIs) to enhance anti-fraud measures for online payment card transactions, following a successful implementation of an anti-malware measure that has significantly reduced reported cases. New tactics employed by fraudsters necessitate stronger security, prompting the HKMA to collaborate with [...]

Gazettal of commencement notice for Basel III final reform package

The Banking (Capital) (Amendment) Rules 2023 Commencement Notice 2024 has been published, establishing January 1, 2025, as the start date for Parts 3 and 5 of the Banking (Capital) (Amendment) Rules 2023 (BCAR). Approved by the Legislative Council in February 2024, the BCAR integrates the Basel III final reform package [...]

Navigating economic uncertainty: Insights for 2024 year-end audits

October 10, 2024

The Accounting and Financial Reporting Council (AFRC) has released its “Audit Focus” for the 2024 year-end audits, providing guidance to auditors on addressing heightened financial reporting risks due to uncertain economic conditions. The document emphasizes the importance of understanding the business environment, maintaining ethical standards, and ensuring auditor independence. Key [...]

HKMA and HKAB support ICAC’s launching of Banking Industry Integrity Charter

October 10, 2024

The Hong Kong Monetary Authority (HKMA) and the Hong Kong Association of Banks (HKAB) have endorsed the Banking Industry Integrity Charter launched by the Independent Commission Against Corruption (ICAC) to enhance integrity in the banking sector. At a launch ceremony attended by senior management from 30 banks, the charter aims [...]

SFC concludes consultation on proposals to enhance REIT regime and SFO market conduct regime for listed CIS

October 9, 2024

The Securities and Futures Commission (SFC) has announced the conclusions of its consultation on introducing a statutory scheme for real estate investment trusts (REITs) and an enhanced market conduct regime for listed collective investment schemes (CIS). The REIT Scheme Proposal aims to facilitate clear and orderly corporate restructuring and privatization [...]

HKMC’s Financial Results Highlights for the First Half of 2024

October 8, 2024

The Hong Kong Mortgage Corporation Limited (HKMC) reported a significant decline in profit after tax for the first half of 2024, with earnings dropping to HK$9 million from HK$1,175 million in the same period last year, largely due to a decrease in property prices affecting the reverse mortgage business. Adjusted [...]

Hong Kong’s Latest Foreign Currency Reserve Assets Figures Released

October 8, 2024

The Hong Kong Monetary Authority (HKMA) reported that the official foreign currency reserve assets for Hong Kong reached US$422.8 billion at the end of September 2024, a slight decrease from US$423.5 billion at the end of August 2024. Notably, there were no unsettled foreign exchange contracts at the end of [...]

AFRC calls on auditors and audit committees to strengthen independence safeguards around procurement and purchases from audit clients

October 7, 2024

The AFRC’s article, “Safeguarding Auditor Independence,” addresses concerns about potential threats to auditor independence related to procurement and purchases from audit clients. It emphasizes the need for audit firms to manage client relationships carefully and adopt robust procedures to mitigate independence risks. CEO Janey Lai stresses that these transactions, often [...]

Hong Kong Monetary Authority and Qatar Central Bank strengthen financial cooperation

October 4, 2024

On October 3, the Hong Kong Monetary Authority (HKMA) and the Qatar Central Bank (QCB) met in Doha to discuss strengthening collaboration in their financial sectors. They explored initiatives related to financial infrastructure, capital markets connectivity, sustainable finance, bond market development, digital assets, and talent development. The HKMA expressed eagerness [...]

SFC welcomes voluntary code of conduct for ESG ratings and data products providers

October 4, 2024

The Securities and Futures Commission (SFC) has announced the publication of a voluntary code of conduct (VCoC) for environmental, social, and governance (ESG) ratings and data providers in Hong Kong. Developed by the Hong Kong ESG Ratings and Data Providers Working Group and supported by the SFC, the code aims [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of TerrorismUnited Nations Sanctions (Haiti) Regulation

October 3, 2024

An updated list of individuals and entities under the UN Sanctions (Haiti) Regulation was published on October 1, 2024, following a prior circular on December 11, 2023. This update, including a relevant press release from the UN Security Council, is accessible on the Commerce and Economic Development Bureau’s website. Licensed [...]

Report on Initial Public Offering Applications, Delisting and Suspensions (September 2024)

On 30 September 2024, the Exchange published a monthly report which provides key statistics relating to the various stages in discharging our regulatory oversight duties during the reporting period. The information for the reporting period covers, among others, the number of applications processed and their current status, the number of [...]

Implementation of first phase of enhancement measures of Deposit Protection Scheme

Starting today, the first phase of enhancements to Hong Kong’s Deposit Protection Scheme (DPS) is effective, following the July 2024 ordinance. Key changes include raising the deposit protection limit from HK$500,000 to HK$800,000 per depositor per bank, refining the levy system to support this increased limit, and simplifying disclosure requirements [...]

AoF Financial Leaders Programme completes 2024 field trip to ASEAN

A delegation of 24 participants from the Hong Kong Academy of Finance’s Financial Leaders Programme recently completed a field trip to Bangkok and Jakarta from September 23 to 27. The trip aimed to enhance exchanges with local financial and business leaders, focusing on macroeconomic opportunities and how Hong Kong’s financial [...]

Monetary Statistics for August 2024

As of September 30, 2024, the Hong Kong Monetary Authority reported a 1.1% increase in total deposits for August 2024, with Hong Kong dollar deposits rising by 0.2% and foreign currency deposits by 2.0%. Over the year, total deposits grew by 5.0%, while Hong Kong dollar deposits rose by 1.5%. [...]

International Reserves and Foreign Currency Liquidity

On September 30, 2024, the Hong Kong Monetary Authority (HKMA) published data on the Hong Kong Special Administrative Region’s foreign currency reserves and liquidity as of August 2024. This information is released monthly in line with the International Monetary Fund’s Special Data Dissemination Standard (SDDS). Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/09/20240930-6/ [...]

Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) reported that as of August 31, 2024, the Exchange Fund’s total assets reached HK$3,981.5 billion, a rise of HK$10.6 billion from July. This increase was driven by a HK$10.3 billion gain in foreign currency assets due to investment revaluations and interest income, while Hong [...]

Consultation conclusions on information sharing among Authorized Institutions to aid in prevention or detection of crime

The Hong Kong Monetary Authority (HKMA) has released the conclusions of a public consultation regarding a proposal for information sharing among Authorized Institutions (AIs) to enhance crime prevention and detection. Initiated on January 23, 2024, the consultation gathered 18 submissions from various stakeholders, with general support for the proposal aimed [...]

New public fund depositaries regime comes live on 2 October 2024

The Securities and Futures Commission (SFC) announced updated codes and guidelines for the new Type 13 regulated activity (RA 13) regime for public fund depositaries, effective October 2, 2024. The SFC will grant RA 13 licenses to 19 depositaries and over 300 staff members from major banking and insurance groups [...]

ICAC chief calls on support for ‘Beijing Consensus’ at UN’s global anti-graft meeting to deepen law enforcement co-operation

ICAC Commissioner Mr. Woo Ying-ming urged international cooperation against corruption at the recent GlobE Network meetings in Beijing, where the “Beijing Consensus” was adopted to enhance law enforcement collaboration and deny safe havens for corrupt individuals. The event, organized by the UNODC and attended by about 400 representatives from 105 [...]

Research Paper on Generative Artificial Intelligence in the Financial Services Sector

A new research paper on Generative Artificial Intelligence (GenA.I.) in the financial services sector highlights its transformative potential, focusing on operational efficiency, risk management, and customer engagement. Released under the Hong Kong Monetary Authority’s “All banks go Fintech” initiative, the paper examines the current state of GenA.I. adoption, key applications, [...]

Risk Associated with Third-party IT Solutions

In response to a recent global IT incident linked to a faulty cybersecurity update, the HKMA emphasizes the need for financial institutions to strengthen their management of third-party dependencies and improve operational resilience. The incident revealed issues such as insufficient testing by the service provider and inadequate risk management of [...]

Treasury Markets Summit 2024

The Treasury Markets Summit 2024, organized by the Hong Kong Monetary Authority (HKMA) and the Treasury Markets Association (TMA), took place on September 27 in Hong Kong. Keynote speaker Eddie Yue, HKMA Chief Executive, emphasized initiatives to enhance Hong Kong’s status as the leading offshore renminbi hub. The summit featured [...]

HKMA Quarterly Bulletin and Half-Yearly Monetary and Financial Stability Report (September 2024 Issue)

On September 27, 2024, the Hong Kong Monetary Authority (HKMA) released its Quarterly Bulletin and Half-Yearly Monetary and Financial Stability Report. The Bulletin includes an article on the regulatory framework for stablecoin issuers in Hong Kong, while the Half-Yearly Report analyzes global and local economic conditions and assesses the performance [...]

Large exposures: revised SPM modules and banking returns

September 27, 2024

HKMA informs that revisions to several Supervisory Policy Manual (SPM) modules and banking returns have been finalized, following industry consultations. The updates, which implement the Banking (Exposure Limits) (Amendment) Rules 2023 (BELAR) effective January 1, 2025, include adjustments based on industry feedback and textual improvements. The STET software for the [...]

SFC and HKMA conclude on further proposals to enhance Hong Kong’s OTC derivatives reporting regime

September 27, 2024

On September 26, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) released a conclusions paper on enhancing the over-the-counter (OTC) derivatives reporting regime in Hong Kong. Following a consultation launched in March 2024, they proposed mandating Unique Transaction and Product Identifiers, along with the reporting [...]

Interest rate of second interest payment for series of retail green bonds due 2026

September 26, 2024

The Hong Kong Monetary Authority announced that the interest rate for the second payment of retail green bonds, due in 2026, will be 4.75% per annum. This payment is scheduled for October 10, 2024, with the rate being the higher of the prevailing Floating Rate of 1.80% and Fixed Rate [...]

Hong Kong’s securities industry extends earnings growth into first half of 2024

September 26, 2024

Hong Kong’s securities industry experienced significant growth in net profits for the first half of 2024, rising 50% to $19 billion compared to the previous six months, and 29% year-on-year. This increase was driven by higher average daily market turnover and a record number of active clients, despite flat total [...]

Insurance Authority warns against fraudulent article with false or misleading information

The Insurance Authority (IA) has issued a warning about a fraudulent article on two webpages falsely claiming that “Hong Kong Allianz Insurance” backs the “Cerebras Online Investment Platform.” Both Allianz Global Corporate & Specialty SE and Euler Hermes (Allianz Trade) have confirmed they are not associated with this platform. The [...]

Use of Artificial Intelligence for Monitoring of Suspicious Activities

The Hong Kong Monetary Authority (HKMA) is promoting the use of artificial intelligence (AI) to enhance the monitoring of money laundering and terrorist financing (ML/TF) risks. Due to the complex ML/TF landscape, including global money laundering cases and increasing geopolitical risks, the HKMA is encouraging Authorized Institutions (AIs) to adopt [...]

Hong Kong’s Latest Foreign Currency Reserve Assets Figures Released

As of the end of August 2024, the Hong Kong Monetary Authority reported that Hong Kong’s official foreign currency reserve assets totaled US$423.4 billion, up from US$419.1 billion at the end of July 2024. Including unsettled foreign exchange contracts, the reserves amounted to US$422.8 billion. These reserves are over five [...]

SFC announces arrangements to facilitate distribution of research reports of eligible ETFs under Stock Connect

The Securities and Futures Commission (SFC) has issued new guidelines for intermediaries distributing research reports on eligible Mainland exchange-traded funds (ETFs) under Stock Connect in Hong Kong. Since the launch of ETF Connect in July 2022, the scheme has expanded smoothly, with the latest guidelines aligning with the China Securities [...]

No Trading Today in Securities and Derivatives Markets Due to Issuance of Typhoon Signal No.8

September 6, 2024

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the cancellation of all trading sessions, including After-Hours Trading, in the securities and derivatives markets for today due to Typhoon Signal No. 8. All securities clearing and settlement services are suspended, and Stock Connect trading is also halted. For information on [...]

Taskforce on SME Lending holds its inaugural meeting

September 6, 2024

The inaugural meeting of the Joint Taskforce on SME Lending, established by the Hong Kong Monetary Authority (HKMA) and the Hong Kong Association of Banks (HKAB), was held on September 5. Co-chaired by Arthur Yuen of the HKMA and Luanne Lim of the HKAB, the meeting brought together HKMA representatives, [...]

Deputy general manager of construction company charged by ICAC for taking $2m bribe for securing project works for subcontractor

September 4, 2024

On September 3, the ICAC charged Xu Wenju, a deputy general manager at China Railway 15th Bureau Group Company Limited, and Ng Koon-shing, an operator at Hanki Contractors (Hong Kong), with conspiracy to accept a bribe. They allegedly colluded between July and November 2022, with Xu accepting $2 million from [...]

International graft fighters in Hong Kong to get equipped for co-building ‘Clean Silk Road’ with innovative technology

September 4, 2024

Twenty-seven anti-corruption experts from 13 Belt and Road (B&R) countries are in Hong Kong for a nine-day training program hosted by the Hong Kong International Academy Against Corruption (HKIAAC) and the ICAC. The program, focused on “Leveraging on Innovation and Technology,” aims to enhance anti-graft capabilities in mega infrastructure projects [...]

Woman charged by ICAC for allegedly offering RMB 2000 bribe to bank staff for reactivating account

September 3, 2024

On September 2, the Independent Commission Against Corruption (ICAC) charged Li Rong, a 38-year-old director of Zhong Sheng Technology, with offering a RMB 2,000 bribe to a bank employee to help reactivate her company’s dormant bank account. Li allegedly made the offer through a communication app in August 2019 after [...]

Interest rate of fourth interest payment for Silver Bond Series due 2025

September 3, 2024

The Hong Kong Monetary Authority announced that the interest rate for the fourth payment of the Silver Bond Series due 2025, scheduled for 16 September 2024, will be 4.00% per annum. This rate, effective from 2 September 2024, is based on the higher of the prevailing Floating Rate (+1.73%) and [...]

SFC issues new guides for visiting and returning professionals to highlight pragmatic licensing options

September 3, 2024

The Securities and Futures Commission (SFC) has released two new quick reference guides to aid professionals in navigating its licensing regime, adding to the five guides published in 2023. These guides, featuring case studies, provide insights into licensing options, processes, and conditions for examination exemptions to support a smooth transition [...]

Insurance Authority releases provisional statistics of the Hong Kong insurance industry for the first half of 2024

On August 30, 2024, the Insurance Authority (IA) released provisional statistics for Hong Kong’s insurance industry for the first half of 2024. Gross premiums rose by 5.1% to $310.9 billion compared to the same period in 2023. Long-term business premiums increased by 5.5% to $273 billion, driven by growth in [...]

HKEX Welcomes Lubna Olayan and Marty Flanagan to International Advisory Council

Hong Kong Exchanges and Clearing Limited (HKEX) has appointed Lubna Olayan and Marty Flanagan to its International Advisory Council, effective September 1, 2024. Lubna Olayan is Chair of the Executive Committee of Olayan Financing Company and Saudi Awwal Bank, and has extensive experience in finance and governance. Marty Flanagan, Chairman [...]

Revised Banking Returns – Capital Adequacy Ratio (Form MA(BS)3) (“CARReturn”), Leverage Ratio (Form MA(BS)27) (“LR Return”), LiquidityPosition (Form MA(BS)1E) (“Liquidity Position Return”) and StableFunding Position (Form MA(BS)26) (“Stable Funding Position Return”)

The revisions to the CAR Return, LR Return, and their Completion Instructions (CIs) have been finalized. These updates are designed to align with the Banking (Capital) (Amendment) Rules 2023 (BCAR) effective January 1, 2025. Additionally, minor amendments have been made to the Stable Funding Position Return and its CIs, as [...]

Exchange Fund Abridged Balance Sheet and Currency Board Account

On August 30, 2024, the Hong Kong Monetary Authority (HKMA) reported that the Exchange Fund’s total assets were HK$3,970.9 billion as of July 31, 2024, a decrease of HK$7.7 billion from June. This decline was driven by reductions in foreign currency and Hong Kong dollar assets, with the former affected [...]

International Reserves and Foreign Currency Liquidity

On August 30, 2024, the Hong Kong Monetary Authority (HKMA) released data on the Hong Kong Special Administrative Region’s foreign currency reserves and liquidity as of July 2024. This information is part of the monthly publication required by the International Monetary Fund’s Special Data Dissemination Standard (SDDS). Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/08/20240830-4/ [...]

Residential Mortgage Survey Results for July 2024

In July 2024, the Hong Kong Monetary Authority reported a slight increase in mortgage applications by 0.7% to 6,740. Mortgage loans approved rose by 1.5% to HK$24.8 billion, with primary market financing up 0.7% and secondary market financing down 1%. Refinancing loans saw a significant increase of 21.5% to HK$2.5 [...]

Monetary Statistics for July 2024

In July 2024, total deposits with authorized institutions in Hong Kong rose by 0.6%, with Hong Kong dollar deposits and foreign currency deposits increasing by 0.2% and 0.9%, respectively. Year-to-date, total deposits grew by 3.8%, but renminbi deposits fell by 0.4% to RMB1,057.5 billion. Total loans and advances decreased by [...]

HKMC’s Social Bonds Allocation Update and Impact Report 2024

The Hong Kong Mortgage Corporation Limited (HKMC) has released its Social Bonds Allocation Update and Impact Report 2024, detailing the allocation and social impacts of its social bond issuances from 2022 and 2023 as of June 30, 2024. The report includes an Independent Practitioner’s Limited Assurance Report by PricewaterhouseCoopers. For [...]

Circular to Licensed Corporations in relation to list of prescribed persons who have reached the clearing threshold under the clearing and record keeping rules for the OTC derivatives regime

The Securities and Futures Commission (SFC) has posted an updated list of prescribed persons who have met the clearing threshold under the Securities and Futures (OTC Derivative Transactions) Rules on their website. The list, which is based on information from the Hong Kong Monetary Authority (HKMA) and SFC, can be [...]

Second AMRO-HKMA-ADBI Financial Leadership Training Program Held in Hong Kong

August 30, 2024

From August 26 to 29, 2024, the Hong Kong Monetary Authority, in partnership with AMRO and ADBI, hosted the second Financial Leadership Training Program in Hong Kong. This event, which built on last year’s success, brought together over 40 senior representatives from central banks and finance ministries across ASEAN+3 countries. [...]

The importance of regulatory synergy in upholding financial reporting and audit quality

August 29, 2024

The Accounting and Financial Reporting Council (AFRC) has released its 2024 Annual Investigation and Compliance Report, detailing its investigation and review activities. In the past year, the AFRC received a record 190 pursuable complaints, with 67% completed, and reviewed 130 sets of financial statements. This led to 77 investigations and [...]

SFC welcomes launch of Project Ensemble Sandbox as key step in Hong Kong’s tokenisation development

August 29, 2024

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have jointly launched the Project Ensemble Sandbox to advance tokenisation in Hong Kong’s asset management sector. This initiative aims to establish a standardized approach for tokenised asset settlement and address challenges in areas such as issuance, trading, [...]

HKEX Names Head of Global Issuer Services

August 28, 2024

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the appointment of Mr. Johnson Chui as Managing Director, Head of Global Issuer Services, effective September 2, 2024. Reporting to HKEX Co-Heads of Markets Wilfred Yiu and Glenda So, Chui will lead Global Issuer Services teams across Hong Kong, Mainland China, [...]

Joint Press release: ICAC and Competition Commission conduct second joint operation against corruption and bid-rigging over building maintenance

The ICAC and the Competition Commission executed a joint operation, “Shotgun,” on August 21 and 22, targeting a syndicate suspected of corruption and bid-rigging. Following a four-month investigation, the agencies arrested five individuals and interviewed 22, executing search warrants at around 20 locations, including offices and residences. The investigation uncovered [...]

Insurance Authority draws public attention on the dire consequences of mishandling or misappropriating premium payments

The Insurance Authority (IA) has highlighted a recent case where a former licensed insurance agent was sentenced to three months and two weeks in prison, along with a compensation order equivalent to the misappropriated premium. The agent had unlawfully taken HK$60,000 in cash from a client for insurance renewal premiums [...]

CDI-CDEG linkage to promote development of Hong Kong’s digital economy

The Hong Kong Monetary Authority (HKMA) and the Digital Policy Office (DPO) have announced that the connection between the HKMA’s Commercial Data Interchange (CDI) and the Government’s Consented Data Exchange Gateway (CDEG) is now fully operational. This linkage allows banks to access company data from the Companies Registry through CDI, [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Early Alert on United Nations Sanctions

The Securities and Futures Commission (SFC) has issued a circular informing licensed corporations, SFC-licensed virtual asset service providers, and associated entities of a recent update to the United Nations Security Council (UNSC) sanctions list. On 23 August 2024, one individual was removed from the sanctions list. Entities are required to [...]

HKMA and HKAB set up joint Taskforce on SME Lending

August 26, 2024

Mr. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), and the CEOs of three HKAB chairman banks discussed SME lending and property mortgage issues. Mr. Yue highlighted ongoing support for SMEs, including measures introduced in March 2024, such as avoiding early repayment demands and maintaining credit limits [...]

Circular to Licensed Corporations: Revised financial return form

August 26, 2024

The Securities and Futures Commission (SFC) has released a revised financial return form for licensed corporations, effective from 1 November 2024. This update, driven by the Securities and Futures (Financial Resources) (Amendment) Rules 2023, pertains to the Type 13 regulated activity regime. The new electronic form, which replaces the previous [...]

Joint announcement of the SFC and the Exchange in relation to modifications to requirements for specialist technology companies and de-SPAC transactions

August 26, 2024

The Securities and Futures Commission (SFC) and The Stock Exchange of Hong Kong Limited (the Exchange) announced temporary modifications to the Listing Rules and guidance materials effective 1 September 2024. These changes address two areas: reducing the minimum initial market capitalization for specialist technology companies and lowering the independent third-party [...]

HKMA and DFSA co-host Climate Conference to strengthen sustainable finance cooperation across Asia and the Middle East

August 23, 2024

The Hong Kong Monetary Authority (HKMA) and the Dubai Financial Services Authority (DFSA) will host the inaugural HKMA–DFSA Joint Climate Finance Conference on 16 September 2024 in Hong Kong, in a hybrid format. This event, a key initiative of their partnership established in December 2023, aims to enhance collaboration on [...]

Hong Kong sees a quarter of broad market growth, firmer ties and regulatory progress: SFC’s Quarterly Report

August 23, 2024

In the second quarter of 2024, Hong Kong’s capital markets showed broad-based progress, according to the Securities and Futures Commission (SFC). Key highlights include a 7% increase in assets under management for Hong Kong-domiciled funds, an 80% rise in net fund inflows, and a 3% rise in licence applications. The [...]

HKMA releases suggestions on good practices on climate-related risk governance

August 22, 2024

The Hong Kong Monetary Authority (HKMA) has shared best practices for managing climate-related risks among authorized institutions (AIs). Key observations include developing clear climate strategies with regular reporting, integrating climate considerations into risk management frameworks with both qualitative and quantitative metrics, and fostering a climate-conscious organizational culture through performance evaluations [...]

SFC warns public of “ICE Global Professional Station” for impersonation and suspected virtual asset-related fraud

August 22, 2024

The Securities and Futures Commission (SFC) has warned about the “ICE Global Professional Station” app, which is suspected of being involved in virtual asset fraud. The platform imitates the Intercontinental Exchange, Inc. and has been linked to issues with investors struggling to withdraw funds. The access link for this app [...]

Insurance Authority warns against phishing mobile text messages

August 21, 2024

The Insurance Authority issued a warning on 21 August 2024 about phishing text messages from fraudsters pretending to be Bowtie Life Insurance Company Limited, a licensed insurer in Hong Kong. The messages, which include a hyperlink directing recipients to a suspicious phone number, attempt to obtain personal or payment information [...]

HKEX releases 2024 Interim Results

August 21, 2024

Hong Kong Exchanges and Clearing Limited has released its 2024 Interim Results. In the first half of 2024, HKEX showcased resilience amid a cautiously optimistic global economic outlook marked by ongoing uncertainties. Despite a 4% decline in Hong Kong’s average daily securities turnover, trading volumes rose notably from March onward, [...]

Composite Interest Rate: End of July 2024

August 20, 2024

The Hong Kong Monetary Authority (HKMA) reported that the composite interest rate, which indicates the average cost of funds for banks, fell by 4 basis points to 2.58% at the end of July 2024 from 2.62% at the end of June 2024. This decrease was primarily due to a lower [...]

Cessation of suspension of Changjiang Corporate Finance (HK) Limited acting as sponsor

August 20, 2024

The Securities and Futures Commission (SFC) has ended the suspension of Changjiang Corporate Finance (HK) Limited (CJCF) from acting as a sponsor for listing applications on the Stock Exchange of Hong Kong Limited (SEHK). The suspension was imposed due to CJCF’s failure to meet sponsor obligations between September 2015 and [...]

ICAC golden jubilee Open Day showcases Hong Kong’s journey towards probity over five decades

To celebrate its 50th anniversary, the ICAC is hosting an Open Day at its North Point building from August 17 for two weekends. The event features an “ICAC TV Drama Series Exhibition,” showcasing iconic moments from the series “ICAC Investigators,” as well as classic promotional posters and historical photos. The [...]

Latest edition of Conduct In Focus – insurance brokers, referral business, commission structures for life insurance, SMS Sender Registration Scheme and licensing fees

The Insurance Authority (IA) has released the latest issue of Conduct In Focus on 16 August 2024, detailing recent complaint statistics, disciplinary actions, and updates on insurance-related issues. The issue includes an in-depth look at insurance brokers’ roles in the life insurance market, focusing on new standards to prevent unlicensed [...]

Exchange Publishes Consultation Paper on a New Phase of Paperless Listing Reforms

The Stock Exchange of Hong Kong Limited (the Exchange) is seeking market feedback on proposals to further enhance its paperless listing regime. The proposals include introducing electronic options for securities holders’ communications, real-time electronic payment of corporate action proceeds, electronic subscription payments, hybrid general meetings with e-voting, and incorporating web [...]

HKMA issues guiding principles in respect of use of generative artifical intelligence in customer-facing applications

In light of advances in big data analytics and artificial intelligence (BDAI), the Hong Kong Monetary Authority (HKMA) has issued updated principles to ensure consumer protection when using Generative AI (GenAI). The HKMA’s 2019 BDAI Guiding Principles, which cover governance, fairness, transparency, and data protection, are now extended to include [...]

Record of Discussion of the Meeting of the Exchange Fund Advisory Committee Currency Board Sub-Committee held on 5 July 2024

The Record of Discussion of the Meeting of the Exchange Fund Advisory Committee Currency Board Sub-Committee held on 5 July are as follows. From 25 April to 25 June 2024, the Hong Kong dollar (HKD) traded between 7.7987 and 7.8294 against the US dollar (USD), strengthening briefly in late April [...]

SFC consults on proposals to abolish mixed media offers

The Securities and Futures Commission (SFC) has announced a two-month consultation to discuss eliminating mixed media offers (MMOs) to promote a fully electronic public offering process in Hong Kong. The proposed amendments to the Companies (Exemption of Companies and Prospectuses from Compliance with Provisions) Notice would end the allowance for [...]

Social Media Account Alert – Fraudulent social media account related to Livi Bank Limited

August 16, 2024

The Hong Kong Monetary Authority (HKMA) has issued a warning about a fraudulent social media account linked to a press release from Livi Bank Limited. The HKMA stresses that banks do not use SMS or emails with embedded links for transactions or request sensitive information through these channels. If you [...]

Instant Message Alert – Phishing instant messages related to Bank of China (Hong Kong) Limited

August 16, 2024

The Hong Kong Monetary Authority (HKMA) has alerted the public to phishing instant messages related to a press release from Bank of China (Hong Kong) Limited. The HKMA emphasizes that banks will not request sensitive information through SMS or emails with embedded links. If you have responded to these phishing [...]

The People’s Bank of China will issue Renminbi Bills through the Central Moneymarkets Unit of the Hong Kong Monetary Authority

August 15, 2024

The People’s Bank of China (PBOC) will issue Renminbi Bills through the Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority (HKMA) on August 21, 2024, with settlement on August 23, 2024. The tender will include RMB30 billion in three-month Bills and RMB15 billion in one-year Bills. Bids must [...]

HKMA issues Q&As on Market Risk and CVA Risk

The HKMA has released Questions and Answers (Q&As) regarding the revised market risk and CVA risk capital frameworks under the Banking (Capital) Rules (BCR), as amended by the Banking (Capital) (Amendment) Rules 2023 (BCAR). These Q&As aim to simplify and clarify the application of the amended rules but should not [...]

Email Alert – Phishing emails related to Tai Sang Bank Limited

The Hong Kong Monetary Authority (HKMA) alerts the public to phishing emails reported by Tai Sang Bank Limited. The press release, available on the HKMA website, highlights that banks do not send SMS or emails with links for transactions or request sensitive information like login passwords through these means. Individuals [...]

Website Alert – Fraudulent websites related to Bank Julius Baer & Co. Ltd.

The Hong Kong Monetary Authority (HKMA) alerts the public to a press release from Bank Julius Baer & Co. Ltd. about fraudulent websites reported to the HKMA. The press release, available on the HKMA website, notes that banks do not send SMS or emails with links for transactions or request [...]

HKMA and Cyberport Launch GenA.I. Sandbox to Bolster A.I. Adoption in Financial Sector

On 13 August 2024, the Hong Kong Monetary Authority (HKMA) and Cyberport launched the Generative Artificial Intelligence (GenA.I.) Sandbox at FiNETech2, highlighting AI’s transformative potential in finance. The event, co-hosted with the FinTech Association of Hong Kong, showcased AI innovations and explored applications in risk management, anti-fraud, and customer service. [...]

Circular to intermediaries: HKEX’s annual rehearsal for trading system recovery

On 7 September 2024, HKEX will conduct its annual emergency trading system recovery rehearsal from 11:00 am to 3:10 pm, covering processes related to the Hong Kong investor identification regime (HKIDR). All Relevant Regulated Intermediaries (RRIs) are encouraged to participate, but only Exchange Participants (EPs) need to submit specific forms [...]

Website and Social Media Page Alert – Fraudulent website and social media page related to DBS Bank (Hong Kong) Limited

August 13, 2024

The Hong Kong Monetary Authority (HKMA) has warned about a fraudulent website and social media page related to DBS Bank (Hong Kong) Limited. Banks will not use SMS or email links for transactions or request sensitive information this way. If you have provided personal details or made transactions through these [...]

Mobile Application (App) Alert – Fraudulent mobile application (App) related to Bank of Singapore Limited

August 12, 2024

The Hong Kong Monetary Authority (HKMA) has issued a warning about a fraudulent mobile application falsely linked to Bank of Singapore Limited. The HKMA emphasizes that banks do not use SMS or email links to request transactions or sensitive personal information such as login credentials. Individuals who have shared personal [...]

Insurance Authority warns against fraudulent website

August 9, 2024

The Insurance Authority (IA) warned the public about a fraudulent website falsely claiming to be the official site of Sun Life Hong Kong Limited. Sun Life Hong Kong has confirmed it has no connection to this site. Individuals who have shared personal information or conducted transactions on this website should [...]

ICAC and CGCC join hands to promote Business Sector Integrity Charter

August 9, 2024

On 8 August, the ICAC and the Chinese General Chamber of Commerce, Hong Kong (CGCC) launched the Business Sector Integrity Charter. This initiative encourages CGCC corporate members to adopt the Integrity Management System (IMS) to enhance business ethics and promote a clean business environment. The ceremony was attended by Deputy [...]

Insurance Authority warns against fraudulent payment requests

August 8, 2024

The Insurance Authority (IA) has warned the public about fraudulent payment requests falsely claiming to be from the IA. These bogus invoices, titled “Insurance Authority Certificate” or “Capital Insurance Certificate,” have been circulating with fake IA details and stamps. The IA confirmed it does not issue such invoices or certificates [...]

Hong Kong’s Latest Foreign Currency Reserve Assets Figures Released

August 8, 2024

As of the end of July 2024, Hong Kong’s official foreign currency reserve assets totaled US$419.3 billion, up from US$416.3 billion at the end of June 2024. Including unsettled foreign exchange contracts, the reserves amounted to US$418.7 billion. These reserves are over five times the currency in circulation and approximately [...]

Website and Instant Message Alert – Fraudulent website and phishing instant messages related to The Hongkong and Shanghai Banking Corporation Limited

August 7, 2024

The Hong Kong Monetary Authority (HKMA) has alerted the public about a press release from The Hongkong and Shanghai Banking Corporation Limited regarding a fraudulent website and phishing instant messages. The HKMA emphasizes that banks will not send SMS or emails with embedded links to their websites for transactions, nor [...]

Review of Virtual Banks

August 7, 2024

The Hong Kong Monetary Authority (HKMA) released a report on 6 August 2024, reviewing the performance and impact of virtual banks (VBs) in Hong Kong since their inception in 2020. The review assessed the delivery of three policy objectives, market acceptance, business performance, and user response to VBs, identified challenges, [...]

Consultation Conclusions on Review of Three-Tier Banking System

August 6, 2024

The Hong Kong Monetary Authority (HKMA) released the conclusions from its public consultation on reviewing the three-tier banking system, outlining its plan to transition to a two-tier system. The consultation, which ran from 26 June 2023, proposed merging deposit-taking companies (DTCs) into restricted licence banks (RLBs) over five years. The [...]

Website and Internet Banking Login Screen Alert – Fraudulent websites and internet banking login screens related to Dah Sing Bank, Limited

The Hong Kong Monetary Authority (HKMA) alerts the public to a press release from Dah Sing Bank, Limited, concerning fraudulent websites and internet banking login screens reported to the HKMA. A link to the press release is available on the HKMA website. The HKMA reminds the public that banks will [...]

Mortgage Insurance Programme

From 8 August 2024, HKMC Insurance Limited (HKMCI) will allow eligible homeowners to rent out self-occupied properties under the Mortgage Insurance Programme (MIP) on a case-by-case basis. This new arrangement assists those facing specific challenges, such as expecting or adopting children, unemployment, or other special needs, as long as the [...]

PBOC and HKMA Sign MOU on Cross-Boundary Linkage of Payment Systems between the Mainland and Hong Kong

The People’s Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) have signed a Memorandum of Understanding (MOU) on cross-boundary payment systems between the Mainland and Hong Kong. The agreement was signed during a meeting on 2 August where Mr. Lu Lei, Deputy Governor of the PBOC, and [...]

Practice Session for Severe Weather Trading

In reference to the circular dated 15 July 2024, concerning the implementation of Severe Weather Trading (SWT) in Hong Kong’s Securities and Derivatives Markets, a Practice Session (PS) will be held on 24 August 2024 for Clearing Participants (CPs) to test their systems and operational setups under SWT conditions. Participation [...]

HKCC Participant Additional Deposit

August 2, 2024

HKFE Clearing Corporation Limited (HKCC) has recalculated the HKCC Participant Additional Deposits (HPAD) in accordance with Rule 705A and the Clearing House Procedures. The new total HPAD requirement is HK$2,863 million, distributed among participants based on their daily average net margin liabilities from May 9, 2024, to July 31, 2024, [...]

Notification of Routine Recalculation of Rates and FX Guarantee Fund

August 2, 2024

OTC Clearing Hong Kong Limited has completed its routine recalculation of the Rates and FX Guarantee Fund as of 1 August 2024, per Rule 1503 of the OTC Clear Rates and FX Derivatives Clearing Rules. The calculation period covered July 1 to July 31, 2024. The Guarantee Fund has been [...]

HKMA’s Response to US Fed’s Interest Rate Decision

August 2, 2024

The Federal Reserve’s Federal Open Market Committee has decided to keep the federal funds rate unchanged at 5.25-5.5%. Future rate decisions will depend on incoming data, outlook, and risk balance. While inflation pressure in the US has decreased, the market anticipates a possible rate cut as early as September, although [...]

Claim notice for the Fidelity Fund and Guarantee Scheme

Pursuant to Rule 910A of the Rules of the Exchange, claims for compensation against the Fidelity Fund and Guarantee Scheme are invited due to the cessation of trading of Goldenway Securities Company Limited and Public Securities Limited effective 31 July 2024. Exchange Participants must lodge valid claims with the Compensation [...]

Monetary Statistics for June 2024

The Hong Kong Monetary Authority reported that total deposits with authorized institutions remained stable in June 2024, with Hong Kong dollar deposits increasing by 0.2% and foreign currency deposits decreasing by 0.1%. Over the first half of 2024, total deposits grew by 3.2% and Hong Kong dollar deposits by 1.1%. [...]

HKMA’s response on Nova Credit Limited’s cessation of operation and exit of Credit Data Smart

The Hong Kong Monetary Authority (HKMA) was notified by industry associations that Nova Credit Limited will cease operations and exit Credit Data Smart. The industry associations have instructed Nova to destroy all personal credit data from Credit Data Smart promptly. An independent third party will monitor this process to ensure [...]

Insurance Authority to start charging fees for insurance intermediary licensing applications after the expiry of the five-year waiver period

The Insurance Authority (IA) announced that it will begin charging fees for insurance intermediary licensing applications starting from 23 September 2024, following the expiry of a five-year waiver period. The fees are based on cost-recovery and were formulated after industry consultation. The IA’s Head of Conduct Supervision, Mr. Peter Gregoire, [...]

HKIACC hosts first professional anti-corruption training for NGOs to enhance governance

The Hong Kong International Academy Against Corruption (HKIAAC) hosted its first anti-corruption training for about 30 major local NGOs to improve governance and corruption prevention in the social welfare sector. At the closing ceremony, Acting Secretary for Labour and Welfare Mr. Ho Kai-ming and ICAC’s Director of Corruption Prevention Mr. [...]

Amendments to the Rules of the Exchange (the “Rules”)

July 31, 2024

The Securities and Futures Commission has approved amendments to the Rules of the Exchange to facilitate the implementation of market data dissemination adjustments for Southbound and Northbound trading under Stock Connect in its second phase. These amendments will come into effect on Monday, 19 August 2024. Holders of Stock Exchange [...]

Exchange Fund Position at end-June 2024

July 31, 2024

The Hong Kong Monetary Authority (HKMA) announced the unaudited financial position of the Exchange Fund at the end of June 2024, showing an investment income of HK$104.0 billion for the first half of the year. Key components included gains on bonds (HK$57.9 billion), Hong Kong equities (HK$6.6 billion), other equities [...]

Website and Email Alert – Fraudulent website and phishing emails related to Bank Julius Baer & Co. Ltd.

The Hong Kong Monetary Authority (HKMA) has issued an alert regarding a press release by Bank Julius Baer & Co. Ltd. about a fraudulent website and phishing emails. The HKMA reminds the public that banks do not send SMS or emails with embedded hyperlinks for transactions or request sensitive personal [...]

Phishing fraud and counterfeit UnionPay International websites

The Hong Kong Monetary Authority (HKMA) has alerted the public to a press release by UnionPay International regarding phishing fraud and counterfeit UnionPay International websites. The HKMA advises individuals who have encountered such fraud or provided personal information to these counterfeit sites to contact the retail payment system operator, report [...]

SFC warns public of Proxinex for suspected virtual asset-related fraud

The Securities and Futures Commission (SFC) has issued a warning about Proxinex, suspected of engaging in virtual asset-related fraud. Investors have reported issues withdrawing assets and were subsequently told their accounts did not exist. Proxinex allegedly recruited an agent to lure investors via dating apps, using fabricated documents to enhance [...]

Suspension of CCASS Services on 10 Aug, 17 Aug, 24 Aug 2024, 31 Aug 2024 (Saturday)

CCASS online services will be suspended on the following Saturdays for internal system testing and upgrades: 10 Aug, 17 Aug, 24 Aug, and 31 Aug 2024. Production reports for these dates will be available on the following Mondays. Participants should inform their IT support or BOS vendors to prepare accordingly [...]

Amendments to the Rules and Procedures (“Rules”) of HKFE Clearing Corporation Limited (“HKCC”)

July 29, 2024

Clearing Participants of HKCC should be aware that the Securities and Futures Commission has approved amendments to the Rules of HKCC to introduce the Weekly Hang Seng TECH Index Option Contract for trading on the Hong Kong Futures Exchange Limited. These amendments will take effect on 2 September 2024. A [...]

FURTHER UPDATES – ADJUSTMENTS TO MARKET DATA DISSEMINATION IN RELATION TO NORTHBOUND AND SOUTHBOUND TRADING UNDER STOCK CONNECT – THE REMAINING ITEMS

July 29, 2024

Further adjustments to market data dissemination related to Northbound and Southbound trading under Stock Connect will be implemented on 19 August 2024. These follow successful adjustments for real-time turnover and daily quota balance implemented on 13 May 2024. The upcoming changes, specifically item 6, involve the market data dissemination of [...]

SFC welcomes appointment and re-appointment of Non-Executive Directors

July 29, 2024

The Securities and Futures Commission (SFC) welcomes the appointment of Mr. Vincent Chan Chun-hung and the re-appointment of Mr. Victor Dawes, SC, as Non-Executive Directors for a two-year term starting on 1 August 2024. SFC Chairman Tim Lui praised Mr. Chan’s expertise in private equities and venture capital for enhancing [...]

SFC warns public against unlicensed virtual asset trading platform CoinUnited.io

July 26, 2024

The Securities and Futures Commission (SFC) has issued a warning about “CoinUnited.io,” an unlicensed virtual asset trading platform (VATP). CoinUnited.io offers trading services in various assets but is neither licensed by the SFC nor has applied for a licence. Operating or marketing such services in Hong Kong without a licence [...]

Complaints Watch Issue No. 24

July 26, 2024

The Hong Kong Monetary Authority (HKMA) released Complaints Watch Issue No. 24 on 25 July 2024. This semi-annual publication highlights current banking complaint trends, emerging issues, and areas for which Authorized Institutions should be vigilant. In the first half of 2024, HKMA received 1,425 banking complaints, an 8% decrease from [...]

Website and Internet Banking Login Screen Alert – Suspicious websites and internet banking login screens related to Mox Bank Limited

July 25, 2024

The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by Mox Bank Limited relating to fraudulent websites, which have been reported to the HKMA. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/07/20240724-3/ [...]

Instant Message Alert – Phishing instant messages related to Fubon Bank (Hong Kong) Limited

July 25, 2024

The Hong Kong Monetary Authority (HKMA) alerts the public to a press release from Fubon Bank (Hong Kong) Limited about phishing instant messages. The press release is available on the HKMA website. The HKMA reminds the public that banks do not send SMS or emails with hyperlinks directing them to [...]

Display of Adjusted Previous Closing Price of Vision International Holdings Limited(stock code 8107) on OTP-C for its 1-into-10 Share Subdivision on 26 July 2024

July 25, 2024

The share subdivision of Vision International Holdings Limited (1 existing share of HK$0.1 into 10 subdivided shares of HK$0.01 each) will be effective on 26 July 2024. Shareholders and market participants should review Vision International’s circulars and regulatory announcements for full details and consult professional advisers if needed. On 26 [...]

Cryptoasset disclosure requirements and standard amendments

July 24, 2024

As per the circular posted by the Hong Kong Monetary Authority, the Basel Committee on Banking Supervision (BCBS) issued two important documents on 17 July 2024: “Disclosure of Cryptoasset Exposures” and “Cryptoasset Standard Amendments.” The first document outlines the final disclosure framework for banks’ cryptoasset exposures, requiring banks to disclose [...]

Introduction of Weekly Hang Seng TECH Index Options on 2 September 2024

July 24, 2024

Hong Kong Futures Exchange Limited (HKFE) announced the regulatory approval for the introduction of Weekly Hang Seng TECH Index (Weekly HSTECH) Options, starting on 2 September 2024. These are standard, cash-settled options expiring every week, designed to help investors manage short-term risks and market events. To aid Exchange Participants (EPs) [...]

Website Alert – Fraudulent websites related to Bank Julius Baer & Co. Ltd.

July 23, 2024

The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by Bank Julius Baer & Co. Ltd. relating to fraudulent websites, which have been reported to the HKMA. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/07/20240722-3/ [...]

HKEX Adds Abu Dhabi Securities Exchange and Dubai Financial Market as Recognised Stock Exchanges

July 22, 2024

The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), is pleased to announce on 19 Jul 2024 that it has added the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) as Recognised Stock Exchanges (RSEs). Resources: https://www.hkex.com.hk/News/Regulatory-Announcements/2024/240719news?sc_lang=en [...]

Website and Social Media Account Alert – Fraudulent websites and social media accounts related to The Hongkong and Shanghai Banking Corporation Limited

July 22, 2024

The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by The Hongkong and Shanghai Banking Corporation Limited relating to fraudulent websites and social media accounts, which have been reported to the HKMA. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/07/20240719-3/ [...]

Consultation conclusions for legislative proposal to implement regulatory regime for stablecoin issuers in Hong Kong released

July 18, 2024

The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly issued on 17 July the consultation conclusions on the legislative proposal to implement a regulatory regime for fiat-referenced stablecoin (FRS) issuers in Hong Kong. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/07/20240717-3/ [...]

AFRC expects full compliance by auditors with relevant laws andregulations

July 17, 2024

The Accounting and Financial Reporting Council (AFRC) stresses that as the independent regulator of the accounting profession in Hong Kong, it expects all audit firms and their personnel to fulfil the fundamental principle of professional behaviour to comply with all relevant laws and regulations under paragraphs 110.1 A1(e) and R115.1(a) [...]

SFC sets clear timeline for implementing an uncertificated securities market in Hong Kong

July 17, 2024

On 16 Jul 2024, The Securities and Futures Commission (SFC) released consultation conclusions on its proposed subsidiary legislation, code and guidelines for implementing an uncertificated securities market (USM) in Hong Kong. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR124 [...]

Hong Kong Deposit Protection Board Annual Report 2023-2024

July 15, 2024

The Hong Kong Deposit Protection Board (the Board) on 12 July published its Annual Report for 2023-2024. The Report highlights the key achievements of the Board in 2023-2024, which include the completion of the public consultation on a package of proposals to enhance the Deposit Protection Scheme (DPS or the [...]

Enduring strength of Hong Kong as leading international asset and wealth management hub: SFC survey 2023

July 15, 2024

The key benchmarking metrics in an annual survey by the Securities and Futures Commission (SFC) reaffirmed Hong Kong’s position as a premier asset and wealth management hub with a highly-diversified investor base, globalised asset allocation and robust fund inflows. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR123 [...]

SFC and CSRC hold high-level enforcement cooperation meeting

July 15, 2024

The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) recently held their 16th regular high-level meeting on enforcement cooperation. The focal point of the meeting in Kunming, Yunnan Province, was initiatives to strengthen collaboration. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR122 [...]

2023 Annual Inspection Report emphasises the pivotal roles of the firm’s leadership in upholding audit quality and reinforces the importance of continuous learning as a key driver of improvement

July 12, 2024

On 11 July 2024 the AFRC published the 2023 Annual Inspection Report. The report coversthe findings, observations, and insights from our 2023 inspection. Resources: https://www.afrc.org.hk/media/adndqf5z/press-release_annual-inspection-report_en.pdf [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism

July 12, 2024

Further to our circular issued on 8 March 2024, the Financial Action Task Force (FATF) issued a statement on High-Risk Jurisdictions subject to a Call for Action on 28 June 2024, which can be found at https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/Call-for-action-june-2024.html. For all countries identified as high-risk, the FATF calls on all members and urges [...]

ICAC safeguards anti-corruption achievements, advances towards a new milestone in a year of fruitful endeavours and accomplishments

July 11, 2024

The ICAC noted in its latest annual report issued on July 10 that 2023 was “a year of fruitful endeavours and accomplishments” as the Commission advanced towards its golden jubilee. The ICAC sought to safeguard the remarkable achievements made in the past 50 years in combating corruption, contribute to the [...]

AFRC’s Response to PricewaterhouseCoopers Whistle-blower Allegations

July 11, 2024

Following the press release issued on 19 April 2024 concerning a whistle-blower report circulating in the media alleging deficiencies in PricewaterhouseCoopers’ systems of quality management and the quality of the audits of China Evergrande Group, the Accounting and Reporting Council (AFRC) conducted a rigorous review of the internal investigation carried [...]

SFC and HKMA welcome PBoC’s new measure on Northbound Swap Connect margin collateral arrangement

July 10, 2024

On 9 Jul 2024, The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) welcomed the announcement of the People’s Bank of China (PBoC) to support offshore investors to use onshore bonds issued by the Ministry of Finance and policy banks on the Mainland and held under [...]

Website and Email Alert – Fraudulent website and phishing emails related to China CITIC Bank International Limited

July 9, 2024

On 08 Jul 2024, the Hong Kong Monetary Authority (HKMA) wished to alert members of the public to a press release issued by China CITIC Bank International Limited relating to a fraudulent website and phishing emails, which have been reported to the HKMA. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/07/20240708-3/ [...]

SFC to launch new online application and submission system for investment products

July 9, 2024

The Securities and Futures Commission (SFC) will launch a new online application and submission system named e-IP for investment products administered by the Investment Products Division on 29 July 2024. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR118 [...]

AFRC analyses trading suspensions of listed entities due to delays in preliminary annual results announcements and calls for continued efforts to uphold high-quality audits and financial reporting

July 8, 2024

On 5 Jul 2024, the Accounting and Financial Reporting Council (AFRC) published a report titled Analysis of Listed Entities Suspended from Trading Due to Delay of Preliminary Annual Results Announcement. This report presents the AFRC’s analysis and observations of trading suspensions among listed entities in Hong Kong caused by delays [...]

SFC warns public of seven entities for suspected virtual asset-related fraud

July 8, 2024

On 5 Jul 2024, the Securities and Futures Commission (SFC) warned the public of seven entities suspected of engaging in fraudulent activities purported to be related to virtual assets (collectively, suspected entities). They are operating under the names of XTCQT, CEG, BTEPRO, Bitones.org, Yomaex Crypto Market Limited (also known as [...]

Self-Assessment of Compliance with Supervisory Policy Manual Module TB-1 “Regulation and Supervision of Trust Business”

The Hong Kong Monetary Authority (HKMA) published a circular which aims to share with authorized institutions (“AIs”) a summary of the results of a self-assessment on compliance with the Supervisory Policy Manual Module TB-1 (“SPM TB-1”) covering the period from 1 June 2023 to 31 December2023. Resources: https://www.hkma.gov.hk/eng/regulatory-resources/regulatory-guides/circulars/ [...]

Website and Internet Banking Login Screen Alert – Fraudulent website and internet banking login screen related to DBS Bank (Hong Kong) Limited

The Hong Kong Monetary Authority (HKMA) wished to alert members of the public to a press release issued by DBS Bank (Hong Kong) Limited relating to a fraudulent website and an internet banking login screen, which have been reported to the HKMA. A hyperlink to the press release is available [...]

Website Alert – Fraudulent website related to Bank Julius Baer & Co. Ltd.

The Hong Kong Monetary Authority (HKMA) wished to alert members of the public to a press release issued by Bank Julius Baer & Co. Ltd. relating to a fraudulent website, which has been reported to the HKMA. A hyperlink to the press release is available on the HKMA website. Resources: [...]

Circular to licensed corporations -Financial resources management and compliance with the Securities and Futures (Financial Resources) Rules

The circular elaborated on the Securities and Futures Commission’s (SFC) expectations regarding the governance and internal control standards of licensed corporations (LCs) for monitoring the adequacy of financial resources and compliance with the Securities and Futures (Financial Resources) Rules (FRR). Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/intermediaries/supervision/doc?refNo=24EC32 [...]

Insurance Authority warns against suspicious website

July 4, 2024

The Insurance Authority (IA) on 3 July 2024 wished to alert members of the public to a suspicious website with the domain name “https[:]//www[.]podenaz[.]com” containing information of a company named “Podenas Bank (Hong Kong)”. The company is not and has never been an authorized insurer or a licensed insurance intermediary [...]

Insurance Authority joins the industry in welcoming the release of consultation conclusion and legislative proposals by the Government on introduction of a company re-domiciliation regime

July 4, 2024

The Insurance Authority (IA) on 3 July 2024 joined industry stakeholders in welcoming the release of consultation conclusion and legislative proposals by the Government on introduction of a company re-domiciliation regime. “The insurance sector has been calling for a regime that enables offshore companies with significant local presence to relocate [...]

AFRC reminds PIE auditors to be prepared for undertaking PIE engagements

On 28 June 2024, the AFRC published an article titled Reminder to PIE auditors: Be preparedfor undertaking PIE engagements. It is primarily targeted at registered public interestentity (PIE) auditors without PIE engagement and practice units which are consideringregistration as PIE auditors with the AFRC. The reminder aims to communicate theAFRC’s [...]

Commencement of the Risk-based Capital regime for the Hong Kong insurance industry

The Risk-based Capital (RBC) regime for the Hong Kong insurance industry has come into operation on 1 July 2024, following the commencement of Insurance (Amendment) Ordinance 2023 and the relevant subsidiary legislation, and the promulgation of new or revised guidelines by the Insurance Authority (IA) that tie in with the [...]

Website alert: https://www.podenaz.com

On 2 Jul 2024, the Hong Kong Monetary Authority (HKMA) wished to alert members of the public in Hong Kong that: The firm as referred to on the above Website does not have the Monetary Authority (MA)’s authorization under the Banking Ordinance (the Ordinance) to carry on banking business, or the [...]

Website alert: https://fmtbchk.com

First District Court hearing on insider dealing case against Segantii Capital Management and its chief investment officer

On 2 Jul 2024, the District Court held the first hearing on the insider dealing prosecution against Segantii Capital Management Limited, its director and chief investment officer Mr Simon Sadler, and former trader Mr Daniel La Rocca after the case was being transferred from the Magistrates’ Court. The proceedings were [...]

Report on Initial Public Offering Applications, Delisting and Suspensions (June 2024)

On 28 June 2024, the Exchange published a monthly report which provides key statistics relating to the various stages in discharging our regulatory oversight duties during the reporting period. The information for the reporting period covers, among others, the number of applications processed and their current status, the number of [...]

Standard Contract for Cross-boundary Flow of Personal Information involving Transfer of Credit Data through Credit Reference Agencies

The Innovation, Technology and Industry Bureau and the CyberspaceAdministration of China announced on 13 December 2023 a facilitationmeasure on “Standard Contract for Cross-boundary Flow of PersonalInformation Within the Guangdong-Hong Kong-Macao Greater Bay Area(Mainland, Hong Kong)”1 and its early and pilot implementation arrangements,and invited participation in such pilots from, among others, [...]

Pilots on Cross-boundary Credit Referencing

On 28 June 2024, the Hong Kong Monetary Authority published a circular which sets out the arrangements for conducting pilots for cross-boundary credit referencing (“CBCR”), and the application of the Supervisory Policy Manual (“SPM”) module on “The Sharing and Use of Commercial Credit Datathrough a Commercial Credit Reference Agency” (“IC-7”) [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism United Nations Sanctions (Joint Comprehensive Plan of Action-Iran) (Amendment) Regulation 2024

The United Nations Sanctions (Joint Comprehensive Plan of Action-Iran) (Amendment) Regulation 2024 (the Amendment Regulation), made under the United Nations Sanctions Ordinance (Cap. 537) (UNSO), was published in the Gazette (L.N. 107 of 2024) on 28 June 2024 with immediate effect. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/aml/doc?refNo=24EC31 [...]

SFC warns public of Tokencan, VBIT Exchange and HKD.com Corporation for suspected virtual asset-related fraud and/or unlicensed activities

On 28 Jun 2024, the Securities and Futures Commission (SFC) warned the public of entities operating under the following names for suspected virtual asset-related fraudulent activities and/or purporting to operate virtual asset trading platform (VATP) in Hong Kong without a licence: Tokencan, VBIT Exchange and HKD.com Corporation. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR113 [...]

Exchange’s Disciplinary Action against Orient Victory Smart Urban Services Holding Limited (Stock Code: 265) and a Current Director

June 26, 2024

The Company conducted two top-up placings in 2019. Prior to each placing, Mr Shi Baodong presented to selected participants in online meetings that the Company’s controlling shareholder would give those participants one free additional share for every placing share they took up. Given the nature and relevance of the free [...]

Reports on “Decentralised Finance: Current Landscape and Regulatory Developments” and “The Metaverse: Opportunities and Challenges for the Financial Services Industry”

June 26, 2024

The Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance (AoF), on 25 June released two new Applied Research reports, titled “Decentralised Finance: Current Landscape and Regulatory Developments” and “The Metaverse: Opportunities and Challenges for the Financial Services Industry” respectively. [...]

Email Alert – Phishing emails related to Bank of China (Hong Kong) Limited

June 26, 2024

On 25 June 2024, the Hong Kong Monetary Authority (HKMA) wished to alert members of the public to a press release issued by Bank of China (Hong Kong) Limited relating to phishing emails, which have been reported to the HKMA. A hyperlink to the press release is available on the [...]

Insurance Authority imposes a pecuniary fine of HK$44,270 against a broker company and a technical representative for mishandling of insurance policy under the former self-regulatory regime

June 25, 2024

On 24 June 2024, the Insurance Authority (IA) imposed a pecuniary fine of HK$37,270 against a licensed insurance broker company and a pecuniary fine of HK$7,000 against a licensed technical representative for failing to handle the insurance policy of a client with due care and diligence under the former self-regulatory [...]

Seminar on Banking Sector’s Support Measures for Small and Medium-sized Enterprises

June 25, 2024

The Hong Kong Monetary Authority (HKMA), the Hong Kong Association of Banks and the Chinese Banking Association of Hong Kong co-organised a seminar on the banking sector’s support measures for small and medium-sized enterprises (SMEs) on 24 June, which was successfully concluded. Supporting organisations included the Trade and Industry Department’s [...]

Bogus Telephone Calls

June 24, 2024

According to a circular published on 21 June, the Hong Kong Monetary Authority (HKMA) notes that bogus telephone calls purported to be made by banks (referred to as “bogus calls” thereafter)have incessantly continued to emerge. Among the 24,000 enquiries made to hotlines of retail banks (including virtual banks) by members [...]

Enhancements to the Code of Practice on Person-to-Person Marketing Calls

June 24, 2024

The Hong Kong Monetary Authority (HKMA) welcomed the launch of the revised Code of Practice on Person-to-Person Marketing Calls (the Code) by the Hong Kong Association of Banks (HKAB) and the DTC Association (DTCA) on 21 June. The Code provides guidance to Authorized Institutions (AIs) in undertaking telemarketing activities with [...]

Insurance Authority warns against fraudulent website

June 21, 2024

According to a press release on 20 Jun 2024, the Insurance Authority (IA) wished to alert members of the public to a fraudulent website with the domain name of “https[:]//xax868[.]com”. The aforesaid website purports to be the official website of authorized insurers in Hong Kong, namely AXA China Region Insurance [...]

SFC secures conviction for provision of paid investment advice on Telegram chat group without licence

June 21, 2024

According to a press release on 20 Jun 2024, the Eastern Magistrates’ Court convicted Mr Wong Ming Chung for providing investment advice on a subscription-based chat group on Telegram he hosted without a licence in a prosecution brought by the Securities and Futures Commission (SFC). Wong pleaded guilty to a [...]

HKEX TO IMPLEMENT SEVERE WEATHER TRADING IN SECURITIES AND DERIVATIVES MARKETS FROM 23 SEPTEMBER 2024

According to a press release on 18 Jun 2024, Hong Kong’s securities and derivatives markets, including Stock Connect, derivatives holiday trading, and after-hours trading, will be open during severe weather conditions. Brokerage and banking services should be provided through electronic channels during severe weather conditions to ensure safety. Severe Weather [...]

OFFICIAL LAUNCH OF ENHANCEMENT OF THIRD PARTY CLEARING ARRANGEMENT

According to a circular issued on 19 Jun 2024, Options Trading Exchange Participants (“OTEPs”) are requested to note that SEOCH will officially launch the enhancement of the Third Party Clearing (“TPC”) arrangement on 24 June 2024. OTEP who is a Non-Clearing Participant (“NCP”) and wishes to appoint more than one [...]

Banking Sector’s Support for Implementation of Severe Weather Trading

According to a circular issued on 18 Jun 2024, in view of the importance of personnel and customer safety, the following arrangements related to banking operation will apply upon the implementation ofSWT: (i) bank branches will be closed as is the case now under inclement weather, and banking services will [...]

SFC’s 35th year and beyond: guiding Hong Kong’s capital markets with mission and vision

According to a press release on 19 Jun 2024, the Securities and Futures Commission (SFC) published its Annual Report 2023-24. The Annual Report highlights various initiatives to promote the resilience and sustainable growth of Hong Kong’s capital markets to cement its position as an international financial centre. It also lays [...]

Three sophisticated ramp-and-dump cases transferred to District Court

According to a press release on 19 Jun 2024, the Eastern Magistrates’ Court granted the applications made on behalf of the Secretary for Justice to transfer three large scale and sophisticated ramp-and-dump cases to the District Court for trial following joint investigations by the Securities and Futures Commission (SFC) and [...]

EXCHANGE’S DISCIPLINARY ACTION AGAINST FOUR FORMER DIRECTORS OF ENVIRO ENERGY INTERNATIONAL HOLDINGS LTD (STOCK CODE: 1102)

June 19, 2024

The Director Unsuitability Statement is a statement that, in the Exchange’s opinion, Mr Li Sen, Mr Zhong and Mr Li Jin Yuan are unsuitable to occupy a position as director or within senior management of the Company or any of its subsidiaries. The Prejudice to Investors’ Interests Statement is a statement [...]

Circular to Management Companies of SFC-authorised Investment Products Listed on The Stock Exchange of Hong Kong Limited concerning Severe Weather Trading of Hong Kong Securities and Derivatives Markets

June 19, 2024

On 18 June 2024, the Securities and Futures Commission (SFC) published a circular to Management Companies of SFC-authorised Investment Products Listed on The Stock Exchange of Hong Kong Limited concerning Severe Weather Trading of Hong Kong Securities and Derivatives Markets. The circular aims to remind management companies of SFC-authorised investment [...]

Circular to intermediaries: Severe weather trading

June 19, 2024

On 18 June 2024, the Securities and Futures Commission (SFC) published a circular to intermediaries in relation to severe weather trading. In view of the implementation of arrangements for maintaining normal operations of the Hong Kong securities and derivatives markets during severe weather conditions (severe weather trading or SWT) starting [...]

SFC bans Ha Po Kwan for 12 months

June 18, 2024

The Securities and Futures Commission (SFC) has banned Mr Ha Po Kwan, a former licensed representative of Primas Asset Management Limited (PAML), from re-entering the industry for 12 months. The disciplinary action follows an SFC investigation which found that in June 2021, Ha, a director of PAML at the material [...]

Market manipulation case adjourned for sentencing

June 18, 2024

The Court of First Instance today adjourned the sentencing of three individuals convicted of conspiracy to carry out false trading in the shares of Ching Lee Holdings Limited to 22 July 2024 after hearing submissions by all parties. The three defendants continued to be remanded in custody by the Correctional [...]

EXCHANGE PUBLISHES CONSULTATION PAPER ON CORPORATE GOVERNANCE CODE ENHANCEMENTS

The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), on 14 Jun 2024 published a consultation paper outlining proposed enhancements to the Corporate Governance Code (Code) and related Listing Rules. Key proposals include board effectiveness improvements, strengthening board independence, promoting diversity, [...]

Technical Adjustment to the Mortgage Insurance Programme

In light of the technical adjustments made by the Hong Kong Monetary Authority (HKMA) on 14 June to the countercyclical macroprudential measures announced on 28 February 2024 and other related supervisory requirements, HKMC Insurance Limited (HKMCI) announces that the applicability of the current eligibility criteria1 of the Mortgage Insurance Programme [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism United Nations Sanctions (Somalia) Regulation 2019 (Amendment) Regulation 2024

The United Nations Sanctions (Somalia) Regulation 2019 (Amendment) Regulation 2024 (the Somalia Amendment Regulation), made under the United Nations Sanctions Ordinance (Cap. 537) (UNSO), was published in the Gazette (L.N. 97 of 2024) on 14 June 2024 with immediate effect. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/aml/doc?refNo=24EC27 [...]

SFC welcomes progress on implementation of Mainland-Hong Kong Mutual Recognition of Funds enhancements

On 14 Jun 2024, the Securities and Futures Commission (SFC) welcomes the public consultation paper published by the China Securities Regulatory Commission (CSRC) on proposed rule amendments for implementing the enhancements of the Mainland-Hong Kong mutual recognition of funds (MRF) scheme. The draft proposals in the CSRC’s consultation paper include [...]

AFRC calls for concerted efforts to improve the quality of financial reporting and audit in Hong Kong

June 14, 2024

On 13 Jun 2024 the Accounting and Financial Reporting Council (AFRC) published its reportRoundtable Discussion on Audit Quality and Climate-integrated Audits in Hong Kong.The report summarises insights gathered from roundtable discussions with investors,members of audit committees, and auditors of listed companies. The discussionsfocused on audit quality of Hong Kong listed [...]

Guidance for the Implementation of the Insurance (Valuation and Capital) Rules

June 14, 2024

Following the gazettal of the commencement notice of the Insurance (Amendment) Ordinance 2023 (“Amendment Ordinance”) on 3 May 2024, the new set of rules and regulations including the Insurance (Valuation and Capital) Rules (Cap. 41R) will come into operation in tandem with the commencement of the Amendment Ordinance (i.e. 1 [...]

Website Alert – Fraudulent website related to Ant Bank (Hong Kong) Limited

June 14, 2024

On 14 Jun 2024 The Hong Kong Monetary Authority (HKMA) alerted members of the public to a press release issued by Ant Bank (Hong Kong) Limited relating to a fraudulent website, which has been reported to the HKMA. A hyperlink to the press release is available on the HKMA website. [...]

Microsoft Purchases Nearly 1 Million Tons of Nature-based Carbon Removal Credits from Anew

On 11 Jun 2024 Microsoft and climate solutions provider Anew Climate announced a new nature-based carbon removal purchase agreement, with Anew delivering more than 970,000 tons of carbon removal credits generated from improved forest management projects across the U.S. Founded in 2001, and majority-owned by alternative asset manager TPG’s impact [...]

Circular issued by the Insurance Authority (“IA”) on action against (and correction of) non-compliant business models that incentivize unlicensed selling of long term insurance policies to Mainland China Visitors

On 12 Jun 2024 Alan Au, Executive Director (Banking Conduct) wrote to draw attention to the circular “Action against (and correction of) non-compliant business models that incentivize unlicensed selling of long term insurance policies to Mainland China Visitors” issued by the IA on 22 May 2024 (“IA Circular”). The IA [...]

SFC briefs virtual asset trading platform applicants on regulatory expectations after transition period ends

On 12 Jun 2024 the Securities and Futures Commission (SFC) held a briefing session today to explain its regulatory expectations to the virtual asset trading platform (VATP) applicants that are now deemed to be licensed after 1 June. Over 60 participants, including representatives from the deemed-to-be-licensed VATP applicants and their [...]

Insider dealing case against Segantii Capital Management and its chief investment officer transferred to District Court

On 12 Jun 2024 the Eastern Magistrates’ Court granted an application by the Department of Justice to transfer an insider dealing case brought by the Securities and Futures Commission (SFC) to the District Court for criminal prosecution.This came after the SFC commenced criminal proceedings against Segantii Capital Management Limited (Segantii), [...]

Fraudulent website and email domain purportedly associated with Insurance Authority

June 12, 2024

The Insurance Authority (IA) alerted the public to a fraudulent website and email domain purportedly associated with the IA on 12 June 2024. The IA has recently received public enquiries about suspicious emails from a fraudulent email address “support@ia-org[.]com”. The sender claimed to be an employee of the IA. An [...]

Insurance Authority welcomes the 2023 Annual Report of the Process Review Panel

The Process Review Panel for the Insurance Authority (PRP) on 7 June 2024 published its 2023 Annual Report, covering 22 cases across areas such as Insurance Authority (IA)’s complaint handling, authorization of insurers, licensing of intermediaries, co-ordination with other financial regulators and exercise of statutory powers. Resources: https://www.ia.org.hk/en/infocenter/press_releases/20240607.html [...]

Exchange’s Disciplinary Action against China Haisheng Juice Holdings Co., Ltd. (Delisted, previous stock code: 359) and Five Directors

On 13 October 2021, the Company announced that its subsidiary had entered into an agreement to dispose of its interest in a company. The Company noted that the disposal would be a major transaction and was therefore subject to requirements under the Listing Rules, including an obligation to obtain shareholders’ [...]

Instant Message Alert – Phishing instant messages related to China Construction Bank (Asia) Corporation Limited

The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by China Construction Bank (Asia) Corporation Limited relating to phishing instant messages, which have been reported to the HKMA. A hyperlink to the press release is available on the HKMA website. The HKMA [...]

Website and Internet Banking Login Screen Alert – Fraudulent website and internet banking login screen related to China CITIC Bank International Limited

The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by China CITIC Bank International Limited relating to a fraudulent website and an internet banking login screen, which have been reported to the HKMA. A hyperlink to the press release is available [...]

Fraudulent website purporting to be HKMA’s official website, platform claimed to be regulated by HKMA and bogus documents and emails

The Hong Kong Monetary Authority (HKMA) would like to alert members of the public to a fraudulent website purporting to be HKMA’s official website, a platform claimed to be regulated by HKMA, and bogus documents and emails: a fraudulent website with the domain name 353049[.]cc; a digital currency platform named “Kucoin”, [...]

Fraudulent phone calls purportedly associated with Insurance Authority

June 7, 2024

The Insurance Authority (IA) , on 6 June, 2024, alerted the public to bogus phone calls purportedly associated with the IA. The IA has recently received public enquiries about suspicious phone calls in the form of pre-recorded messages, claiming to be made by the IA. In one case, the recipient [...]

Insurance Authority warns against fraudulent website and email domain

June 6, 2024

The Insurance Authority (IA) on 4 June 2024 wishes to alert members of the public in Hong Kong to a fraudulent website with the domain name of “https[:]//arvudainsurance[.]com” and email domain of “@arvudainsurance.com”. The aforesaid website and email domain purport to be the official website and email contact of a [...]

Project mBridge reaches MVP stage

June 6, 2024

The Hong Kong Monetary Authority (HKMA), together with the rest of the mBridge project team, announced on 5th June that Project mBridge has reached the Minimum Viable Product (MVP) stage. Project mBridge aims to study how central bank digital currencies (CBDCs) and innovative solutions can be applied to solve the key [...]

SFC cooperates with BCSC in obtaining preservation orders against Leung Anita Fung Yee Maria in British Columbia, Canada

June 6, 2024

The Securities and Futures Commission (SFC) has obtained preservation orders against Ms Leung Anita Fung Yee Maria, former chief executive officer and executive director of SMI Culture & Travel Group Holdings Limited (SMI Culture & Travel Group), with the assistance of the British Columbia Securities Commission (BCSC) of Canada. The [...]

Exchange Fund Bills Tender Results

June 5, 2024

04 Jun 2024 Exchange Fund Bills Tender Results Tender date : 4 June 2024 Paper on offer : EF Bills Issue number : Q2423 Issue date : 5 June 2024 Maturity date : 4 September 2024 Amount applied : HK$144,884 MN Amount allotted : HK$61,104 MN Average yield accepted : [...]

HKMC’s Financial Results Highlights for 2023

June 3, 2024

The Hong Kong Mortgage Corporation Limited (HKMC) announced its audited consolidated financial results for 2023. The company reported a loss after tax of HK$260 million, primarily due to increased insurance contract liabilities for the annuity business driven by lower market interest rates, as well as the negative impact of property [...]

SFC meets Capital Market Authority and Saudi Tadawul Group in Saudi Arabia

June 3, 2024

The Securities and Futures Commission’s (SFC) Chief Executive Officer, Ms Julia Leung, and its Executive Director of Investment Products, Ms Christina Choi, recently concluded a business trip to the Middle East. In Riyadh, Saudi Arabia, they met with the head of the Capital Market Authority (CMA) and senior executives of [...]

Top executives of SFC and DFSA meet in Dubai to extend market ties

The Securities and Futures Commission’s (SFC) Chief Executive Officer, Ms Julia Leung, and its Executive Director of Investment Products, Ms Christina Choi, held a high-level meeting today with top executives of the Dubai Financial Services Authority (DFSA) in Dubai, United Arab Emirates (UAE) as part of their official visit to [...]

Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced that the total assets of the Exchange Fund amounted to HK$4,062.9 billion as of April 30, 2024, a decrease of HK$0.9 billion from the end of March 2024. This was driven by a HK$82.4 billion decrease in foreign currency assets, which was partially [...]

International Reserves and Foreign Currency Liquidity

On May 31st, the Hong Kong Monetary Authority (HKMA) published the analytical data on Hong Kong’s foreign currency reserves and liquidity as of the end of April 2024 (see Annex). These data are released monthly in the Template on International Reserves and Foreign Currency Liquidity, in accordance with the International [...]

Residential Mortgage Survey Results for April 2024

The number of mortgage applications in Hong Kong increased by 11.7% month-over-month in April 2024, reaching 9,629. Mortgage loans approved during the month saw a significant jump of 52.4% compared to March, totaling HK$29 billion. This included a 64.8% rise in mortgage loans for primary market transactions to HK$11.1 billion [...]

Monetary Statistics for April 2024

In April 2024, total deposits with authorized institutions in Hong Kong increased by 2.2%. This included a 0.5% rise in Hong Kong dollar deposits and a 3.7% increase in foreign currency deposits. Over the year to the end of April, total deposits grew by 2.1% and Hong Kong dollar deposits [...]

Insurance Authority releases provisional statistics of Hong Kong insurance industry in the first quarter of 2024

The Insurance Authority (IA) of Hong Kong has released provisional statistics for the insurance industry in the first quarter of 2024. Total gross premiums increased by 12.2% to $165.1 billion compared to the same period in 2023. In the long-term business sector, total revenue premiums rose 14% to $144.3 billion, [...]

Social Media Account Alert – Fraudulent social media account related to Airstar Bank Limited

The Hong Kong Monetary Authority (HKMA) has issued an alert to the public regarding a fraudulent social media account associated with Airstar Bank Limited. The HKMA has advised that Airstar Bank has released a press statement on this matter, which is available on the HKMA’s website. The HKMA has also [...]

Exchange Fund Bills Tender Results

On May 31, 2024, the Hong Kong government held a tender for EF Bills with an issue number of M2406. The tender date was May 31, 2024, and the issue date for the bills was June 3, 2024. The bills have a maturity date of July 3, 2024, meaning they [...]

Ministry of Finance issues Renminbi Sovereign Bonds through Central Moneymarkets Unit of Hong Kong Monetary Authority

May 30, 2024

The Ministry of Finance will sell Chinese Yuan-denominated government bonds through the Hong Kong Monetary Authority’s (HKMA) Central Moneymarkets Unit. The tender notice and information memorandum for these Renminbi Sovereign Bonds issued by the Ministry of Finance are attached. Additionally, the tender-related details provided by the Issuing and Lodging Agent [...]

Bogus emails, advertisement and phone calls purportedly associated with HKMA

May 29, 2024

The Hong Kong Monetary Authority (HKMA) has recently received public inquiries regarding various fraudulent activities claiming to be associated with the HKMA. These include a fraudster posing as an HKMA staff member offering to help recover losses from fraud, a notification about an intercepted fund transfer purportedly from the HKMA’s [...]

SFC top executives visit Saudi Arabia and UAE to foster financial services collaboration

May 29, 2024

The Securities and Futures Commission (SFC) of Hong Kong, led by CEO Ms. Julia Leung and Executive Director Ms. Christina Choi, will be making their first official visit to the Middle East, traveling to Saudi Arabia and the United Arab Emirates (UAE). The aim of this visit is to strengthen [...]

Exchange Fund Bills Tender Results

May 28, 2024

On May 28, 2024, the Hong Kong Monetary Authority (HKMA) held tenders for two issues of EF Bills. The first issue, Q2422, had an issue date of May 29, 2024, a maturity date of August 28, 2024, and an amount applied of HK$132,570 MN, with HK$62,488 MN allotted at an [...]

SFC statement on the end of non-contravention period for virtual asset trading platforms

May 28, 2024

The Securities and Futures Commission (SFC) is reminding the public that the non-contravention period for virtual asset trading platforms (VATPs) operating in Hong Kong under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) will end on June 1, 2024. All VATPs in Hong Kong must be either licensed by the [...]

Instant Message Alert – Phishing instant messages related to Industrial and Commercial Bank of China (Asia) Limited

May 28, 2024

The Hong Kong Monetary Authority (HKMA) has issued a press release to alert the public about phishing instant messages reported to the HKMA. The press release was issued by Industrial and Commercial Bank of China (Asia) Limited and is available on the HKMA website. The HKMA is warning the public [...]

Hong Kong Monetary Authority delegation visited Malaysia to strengthen bilateral financial collaboration

May 27, 2024

The Hong Kong Monetary Authority (HKMA) delegation, led by Mr Eddie Yue, Chief Executive, concluded a three-day visit to Kuala Lumpur, Malaysia to strengthen financial collaboration between Malaysia and Hong Kong. The delegation held bilateral meetings with the Bank Negara Malaysia (BNM), focusing on strategic areas including digital finance and [...]

SFC and Abu Dhabi’s FSRA hold high-level meeting in Athens

May 27, 2024

Yesterday, the Chief Executive Officer of the Securities and Futures Commission (SFC) in Hong Kong, Ms Julia Leung, and its Executive Director of Investment Products, Ms Christina Choi, met with the Chief Executive Officer of the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), Mr Emmanuel [...]

Phone Calls Alert – Bogus calls related to WeChat Pay Hong Kong Limited

May 25, 2024

The Hong Kong Monetary Authority (HKMA) has issued an alert to the public regarding a press release from WeChat Pay Hong Kong Limited about bogus phone calls. The HKMA states that the relevant stored value facility (SVF) licensee, which in this case is WeChat Pay Hong Kong Limited, has reported [...]

Website Alert – Fraudulent website related to Bank Julius Baer & Co. Ltd.

The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by Bank Julius Baer & Co. Ltd. relating to a fraudulent website, which has been reported to the HKMA. A hyperlink to the press release is available on the HKMA website. The [...]

Website and Email Alert – Fraudulent website and phishing emails related to Tai Sang Bank Limited

The Hong Kong Monetary Authority (HKMA) has issued an alert to the public regarding a fraudulent website and phishing emails associated with Tai Sang Bank Limited. The HKMA has provided a hyperlink to the press release issued by Tai Sang Bank Limited on the HKMA’s website. The HKMA also reminds [...]

Insurance Authority welcomes appointment of two Executive Directors

The Insurance Authority (IA) today (24 May 2024) welcomed a decision made by the Government to appoint Mr MM Lee and Mr Marty Lui as the Executive Director of General Business and the Executive Director of Long Term Business respectively, both for a term of three years. “Mr Lee and [...]

Appointment of Executive Directors to Insurance Authority

The Government announced today (May 24) that the Financial Secretary, in exercise of the authority under the Insurance Ordinance (Cap. 41) delegated to him by the Chief Executive, has appointed Mr Lee Moung-mo as the Executive Director, General Business, and Mr Marty Lui Yu-kwok as the Executive Director, Long Term [...]

Exchange Fund Notes Tender Results

On May 22, 2024, the Hong Kong Monetary Authority (HKMA) announced the tender details for EF Notes, Issue number 02Y2605. The tender date is set for May 22, 2024, with the issue date scheduled for May 23, 2024, and the maturity date on May 26, 2026. The coupon rate is [...]

Email Alert – Phishing emails related to Bank of China (Hong Kong) Limited

The Hong Kong Monetary Authority (HKMA) has issued a public alert regarding phishing emails related to Bank of China (Hong Kong) Limited. The HKMA has made this information available through a press release published on its website, demonstrating its regulatory role in identifying potential threats and informing the public. Furthermore, [...]

Website Alert – Fraudulent website related to Bank Julius Baer & Co. Ltd.

The Hong Kong Monetary Authority (HKMA) has issued a public alert regarding a fraudulent website associated with Bank Julius Baer & Co. Ltd. The HKMA has made this information available through a press release published on its website. This action demonstrates the HKMA’s regulatory role in identifying potential threats to [...]

Result of the tenders of the People’s Bank of China RMB Bills held on 22 May 2024

The People’s Bank of China held a tender for three-month RMB bills on May 22, 2024. The total application amount was RMB 68,410 million, and the issue amount was RMB 30,000 million. The average accepted coupon rate was 2.63%, with the highest accepted rate at 2.75% and the lowest at [...]

Insurance Authority warns against fraudulent website

May 21, 2024

The Insurance Authority (IA) has issued an alert to the public regarding a fraudulent website with the domain name “https://www.oyos.link“. This website falsely claims to be the official website of an authorized insurer in Hong Kong, YF Life Insurance International Limited (YF). YF has confirmed that it has no connection [...]

Exchange Fund Bills Tender Results

May 21, 2024

On 21 May 2024, the Hong Kong Monetary Authority (HKMA) conducted two tenders for EF Bills. The first tender, with issue number Q2421, was for HK$128,400 million worth of bills with a maturity date of 21 August 2024. The amount allotted was HK$62,151 million, with an average yield accepted of [...]

Website Alert – Suspicious website related to Tai Yau Bank, Limited

May 21, 2024

The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by Tai Yau Bank, Limited relating to a suspicious website, which has been reported to the HKMA. A hyperlink to the press release is available on the HKMA website. The HKMA wishes [...]

Social Media Post Alert – Fraudulent social media posts related to Hang Seng Bank, Limited

May 20, 2024

The Hong Kong Monetary Authority (HKMA) has issued an alert to the public regarding fraudulent social media posts associated with Hang Seng Bank, Limited. The HKMA highlights that these posts have been reported to them and advises individuals to refer to a press release issued by Hang Seng Bank for [...]

Composite Interest Rate: End of April 2024

May 20, 2024

The Hong Kong Monetary Authority (HKMA) has announced that the composite interest rate at the end of April 2024 decreased by 8 basis points to 2.65% compared to the end of March 2024. The composite interest rate is a measure of the average cost of funds for banks. The decrease [...]

Senior Appointment at the Hong Kong Monetary Authority

Today (May 17), the Hong Kong Monetary Authority (HKMA) declared that Mr. Arthur Yuen’s tenure as Deputy Chief Executive will be extended beyond the standard retirement age for an additional two years, starting from August 2024. This decision was made by the Financial Secretary, based on the recommendations of the [...]

Expanding the cross-boundary e-CNY pilot in Hong Kong

The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBoC) have expanded the e-CNY pilot program in Hong Kong to facilitate the use of e-CNY wallets by Hong Kong residents. This expansion allows users to set up e-CNY personal wallets using their Hong Kong mobile phone numbers [...]

HKICPA signs MoU with ISCA to strengthen exchanges between the accounting professions in Hong Kong and Singapore

The Hong Kong Institute of Certified Public Accountants (HKICPA) and the Institute of Singapore Chartered Accountants (ISCA) have signed a Memorandum of Understanding (MoU) to enhance collaboration between the accounting professions in Hong Kong and Singapore. The MoU covers various areas of cooperation, including international recognition, professional training, networking opportunities, [...]

SFC welcomes industry-led public consultation on voluntary code of conduct for ESG ratings and data products providers

The Securities and Futures Commission (SFC) of Hong Kong has expressed its support for a public consultation launched by an industry-led working group regarding the development of a voluntary code of conduct (VCoC) for environmental, social, and governance (ESG) ratings and data products providers in Hong Kong. The SFC, which [...]

Credit Card Lending Survey Results for First Quarter 2024

May 16, 2024

The credit card lending survey results for the first quarter of 2024 were released by the Hong Kong Monetary Authority on 16th May. At the end of March 2024, total card receivables saw a decrease of 5.3%, amounting to HK$151.5 billion. This decline can be attributed to the waning effects [...]

SFC facilitates broadening of master-feeder ETFs offerings in Hong Kong

May 16, 2024

The Securities and Futures Commission (SFC) has released a revised circular that allows SFC-authorised feeder Exchange-Traded Funds (ETFs) operating under a master-feeder structure to invest in overseas-listed master ETFs, including actively managed ETFs, from various markets. This move comes in response to the growing global ETF market, which reached a [...]

The People’s Bank of China will issue Renminbi Bills through the Central Moneymarkets Unit of the Hong Kong Monetary Authority

May 16, 2024

The People’s Bank of China (PBOC) will be issuing Renminbi-denominated bills through the Central Moneymarkets Unit operated by the Hong Kong Monetary Authority (HKMA). The tender notice and information memorandum for these Renminbi bills being issued by the PBOC are attached. Additionally, the tender-related information provided by the Issuing and [...]

Tentative issuance schedule for Exchange Fund Bills and Notes

On May 14, the Hong Kong Monetary Authority (HKMA) released a tentative issuance schedule for Exchange Fund Bills and Notes (EFBNs) for the upcoming quarter of July to September 2024. The schedule provides information on the tentative tender dates, issue sizes, and issue dates of individual EFBNs. It takes into [...]

Analytical Accounts of the Exchange Fund

On May 14, the Hong Kong Monetary Authority (HKMA) published the key analytical accounts of the Exchange Fund for the end of April 2024. The foreign assets, which represent the external assets of the Exchange Fund, experienced a decrease of HK$60.9 billion, reaching a total of HK$3,460.2 billion during the [...]

Exchange Fund Bills Tender Results

On 14 May 2024, a tender was conducted by the Hong Kong Monetary Authority for EF Bills with the issue number Q2420. These bills are scheduled to be issued on 16 May 2024 and will mature on 14 August 2024. The total amount applied for this tender was HK$136,600 MN, [...]

Tender results of the 1-year HONIA-indexed Floating Rate Notes under the Institutional Bond Issuance Programme

The Hong Kong Monetary Authority, on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), has announced the successful tender of 1-year HONIA-indexed Floating Rate Notes (issue number 01GH2505) under the Institutional Bond Issuance Programme, which took place today (14 May). A total of HK$1.5 billion worth of [...]

Coin Collection Programme

The Hong Kong Monetary Authority (HKMA) has announced the new service schedule for the Coin Collection Programme, which will run from June 3, 2024, to August 18, 2024. The Programme, which operates through two Coin Carts, has been successful since its launch in October 2014. Over the years, the Coin [...]

Swap Connect enhancements to advance high-quality opening-up of China’s financial markets

May 13, 2024

Swap Connect, the mutual access between Mainland China and Hong Kong interest rate swap markets, was launched in May 2023 to advance the opening-up of China’s financial markets. Since its launch, Swap Connect has operated smoothly, attracting active participation from Mainland and overseas investors. By April 2024, more than 3,600 [...]

Joint press release of the PBoC, the SFC and the HKMA on Swap Connect enhancements to advance high-quality opening-up of China’s financial markets

May 13, 2024

The launch of Swap Connect in May 2023 as part of China’s financial market opening-up strategy has been successful, with smooth trading and increasing participation. By April 2024, over 3,600 interest rate swap transactions had been conducted, totalling approximately RMB1.77 trillion in notional amount. The average daily turnover has risen [...]

Tender of 2-Year Exchange Fund Notes to be held on 22 May 2024

May 10, 2024

The Hong Kong Monetary Authority (HKMA) has announced that a tender for 2-year Exchange Fund Notes will take place on 22 May 2024, with settlement scheduled for 23 May 2024. This tender is intended to roll over an existing issue of 2-year Exchange Fund Notes that is set to mature [...]

Tender of 1-year HONIA-indexed Floating Rate Notes under the Institutional Bond Issuance Programme to be held on Tuesday, 14 May 2024

May 9, 2024

On May 8, the Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), announced that a tender for 1-year HONIA-indexed Floating Rate Notes (Notes) under the Institutional Bond Issuance Programme will take place on May 14, 2024. The settlement for the [...]

Tentative issuance schedule for HKSAR Government Bonds under the Institutional Bond Issuance Programme

May 8, 2024

On May 8th, the Hong Kong Monetary Authority (HKMA) released a preliminary issuance schedule for Government Bonds (GBs) under the Institutional Bond Issuance Programme. This schedule outlines the tentative tenors, tender dates, issuance sizes, issue dates, and methods of issuance for individual GB issues from April to September 2024. It [...]

Hong Kong’s Latest Foreign Currency Reserve Assets Figures Released

May 7, 2024

The Hong Kong Monetary Authority (HKMA) has reported that Hong Kong’s official foreign currency reserve assets stood at US$416.4 billion as of the end of April 2024. This figure represents a slight decrease from the end of March 2024 when the reserve assets amounted to US$423.5 billion. It is worth [...]

Exchange Fund Bills Tender Results

May 7, 2024

On May 7, 2024, a tender was conducted for EF Bills with issue number Q2419. These bills were issued on May 8, 2024, and would mature on August 7, 2024. The total amount applied for was HK$152,110 MN, of which HK$59,077 MN was allotted. The average yield accepted for the [...]

HKMA establishes the Project Ensemble Architecture Community

May 7, 2024

The Hong Kong Monetary Authority (HKMA) has announced the establishment of the Project Ensemble Architecture Community, a collaborative effort with industry stakeholders to shape standards and provide guidance for the development of Hong Kong’s tokenisation market. The primary objective of the Community is to create industry standards that promote interoperability [...]

Hong Kong Monetary Authority welcomes pilot launch of the Shenzhen-Hong Kong cross-boundary data validation platform

The authorities in Shenzhen and Hong Kong have announced the pilot launch of the Shenzhen-Hong Kong cross-boundary data validation platform. This platform utilizes blockchain technology and data coding for document verification without the need for cross-boundary transfer or storage of original documents. It provides a credible means for validating the [...]

Survey on Small and Medium-Sized Enterprises (SMEs)’ Credit Conditions for First Quarter 2024

The Hong Kong Monetary Authority (HKMA) has published the results of the Survey on Small and Medium-Sized Enterprises (SMEs) Credit Conditions for the first quarter of 2024. The survey indicates that SMEs’ perception of banks’ credit approval stance has improved, with 71% of respondents perceiving a “similar” or “easier” credit [...]

Companies Registry’s e-services maintained after earlier incident of personal data leakage

The Companies Registry (CR) has announced the completion of urgent maintenance on its e-Services Portal to prevent any further leakage of personal data. Following a thorough investigation, it was discovered that the contractor’s system design had inadvertently caused the transmission of additional personal data to the client’s computer. Although this [...]

Insurance Authority welcomes World Bank’s second issuance and listing of catastrophe bond in Hong Kong

The Insurance Authority (IA) expressed its satisfaction with the recent issuance and listing of a catastrophe bond worth US$150 million in Hong Kong. The bond, facilitated by the International Bank for Reconstruction and Development of the World Bank Group, aims to provide protection against storm risks in Jamaica for the [...]

HKMA announces details on extending the Green and Sustainable Finance Grant Scheme and expanding subsidy scope to cover transition finance instruments

The Hong Kong Monetary Authority (HKMA) has announced the extension of the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as part of the 2024-25 Budget. Launched in May 2021, the GSF Grant Scheme provides subsidies for eligible green and sustainable debt issuance in Hong Kong. The scheme will [...]

Email Alert – Phishing emails related to Bank of China (Hong Kong) Limited

The Hong Kong Monetary Authority (HKMA) is alerting the public to a press release issued by Bank of China (Hong Kong) Limited regarding phishing emails that have been reported to the HKMA. A hyperlink to the press release can be found on the HKMA website. The HKMA would like to [...]

Monetary Authority Announces Countercyclical Capital Buffer Ratio for Hong Kong

On 3 May, the Monetary Authority of Hong Kong declared that the countercyclical capital buffer (CCyB) ratio for the region would remain unchanged at 1%. Mr Eddie Yue, the Monetary Authority, stated that the quantitative indicators indicate that overheating risks in Hong Kong are well under control. Considering the Positive [...]

Interest rate of the fourth interest payment for the series of retail green bonds due 2025

The Hong Kong Monetary Authority, on behalf of the Hong Kong Special Administrative Region Government, has disclosed the per annum interest rate for the fourth interest payment of the retail green bonds due in 2025. These bonds, identified as Issue Number 03GR2505R and with a Stock Code of 4252, are [...]

Hong Kong Taxonomy for Sustainable Finance

The Hong Kong Monetary Authority (HKMA) has published the Hong Kong Taxonomy for Sustainable Finance, a framework aimed at promoting green and sustainable finance in the local market. The taxonomy provides a clear definition of green products and covers 12 economic activities across sectors like power generation, transportation, construction, and [...]

The HKMA’s Response to the US Fed’s Interest Rate Decision

May 2, 2024

The Federal Open Market Committee (FOMC) of the Federal Reserve, also known as the Fed, announced today that it has decided to maintain the target range for the federal funds rate at 5.25-5.5%. The FOMC’s decision reflects its cautious approach to interest rate adjustments, which will depend on incoming data, [...]

HKMA Annual Report 2023 and Sustainability Report 2023

The Hong Kong Monetary Authority (HKMA) has released its Annual Report 2023 and Sustainability Report 2023. The Annual Report provides an overview of monetary and banking affairs, highlighting key trends and major events that occurred in 2023. It also outlines the HKMA’s initiatives and achievements throughout the year, as well [...]

Monetary Statistics for March 2024

According to the Hong Kong Monetary Authority (HKMA), total deposits with authorized institutions increased by 0.2% in March 2024. This growth was driven by a 0.7% increase in Hong Kong dollar deposits, while foreign currency deposits decreased by 0.2%. In the first quarter of 2024, total deposits experienced a slight [...]

Residential Mortgage Survey Results for March 2024

The Hong Kong Monetary Authority (HKMA) has released the results of the residential mortgage survey for March 2024. The survey reveals a significant increase in mortgage applications, with a month-on-month growth of 70.1% to reach 8,622 applications. Mortgage loans approved in March also saw an uptick of 6.2% compared to [...]

Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) has announced that as of 31 March 2024, the total assets of the Exchange Fund amounted to HK$4,063.8 billion. This represents an increase of HK$22.9 billion compared to the end of February 2024. The growth in total assets was primarily driven by a HK$23.2 [...]

Website Alert – Fraudulent website related to Nanyang Commercial Bank, Limited

The Hong Kong Monetary Authority (HKMA) has issued an alert to the public regarding a press release by Nanyang Commercial Bank, Limited regarding a fraudulent website. The HKMA has been notified about the fraudulent website and aims to raise awareness among the public. The press release, which can be accessed [...]

Exchange Fund Bills Tender Results

The Hong Kong Monetary Authority (HKMA) recently conducted tenders for EF Bills on 30 April 2024. In the first tender (issue number Q2418), an amount of HK$143,490 million was applied, with HK$58,864 million allotted. The average accepted yield was 4.22 percent, and the highest accepted yield stood at 4.29 percent. [...]

Website and Internet Banking Login Screen Alert – Fraudulent website and internet banking login screen related to Fubon Bank (Hong Kong) Limited

The Hong Kong Monetary Authority (HKMA) has issued an alert to the general public regarding a press release from Fubon Bank (Hong Kong) Limited regarding a fraudulent website and internet banking login screen. The HKMA has been notified of these fraudulent activities and urges individuals to exercise caution. The press [...]

New speech by Christina Choi: Speech at the listing ceremony of first bitcoin and ether spot ETFs

The Securities and Futures Commission (SFC) recently posted a speech delivered by Ms. Christina Choi on its website, concerning the listing ceremony of the first Bitcoin and Ether spot Exchange Traded Funds (ETFs). This event marks a significant milestone for the financial market and highlights Hong Kong’s position as a [...]

Insurance Authority warns against fraudulent website

April 29, 2024

On April 29, 2024, the Insurance Authority (IA) issued a warning regarding a fraudulent website, “https://www.centuryinservices.com,” which falsely claims to be the official website of Century Insurance Services Limited (CISL), a licensed insurance agency in Hong Kong. The IA wants to alert the public about this deceptive website and clarify [...]

Companies Registry fully resumes online services

April 29, 2024

The Companies Registry recently released an important update regarding the e-Search service of the e-Services Portal. The registry disclosed that the e-Search service, which had been temporarily halted for maintenance purposes, has now been fully restored. Effective from 5 pm on April 20, users can once again access and utilize [...]

HKMA Launches Inaugural FiNETech to Promote Fintech Adoption

April 27, 2024

The Hong Kong Monetary Authority (HKMA) has launched the FiNETech series, a platform aimed at fostering collaboration between financial institutions and technology firms in the areas of Wealthtech, Insurtech, Greentech, Artificial Intelligence (AI), and Distributed Ledger Technology (DLT). With the participation of around 100 banks, securities and insurance companies, as [...]

HKMC Annuity Plan product enhancements and promotional offer

HKMC Annuity Limited (HKMCA), a subsidiary of The Hong Kong Mortgage Corporation Limited, has announced the launch of enhancement measures and a promotional offer for the HKMC Annuity Plan. During the promotion period from April 29 to December 31, 2024, customers applying for the Plan can enjoy a 25% increase [...]

Three-year extension of grant scheme for open-ended fund companies and real estate investment trusts

The Securities and Futures Commission (SFC) has announced a three-year extension of the Government’s grant scheme in Hong Kong, which subsidizes the establishment of open-ended fund companies (OFCs) and real estate investment trusts (REITs). Under the extended scheme, eligible expenses paid to Hong Kong-based service providers for OFCs and SFC-authorized [...]

Consultation conclusions on draft Rules on Risk-based Capital regime

The Insurance Authority (IA) has released the consultation conclusions on six draft Rules that will facilitate the implementation of the Risk-based Capital (RBC) regime. The IA had previously published the draft Rules in two batches in December 2023 and January 2024, seeking public input. The feedback received from respondents was [...]

SFC issues restriction notices to two brokers to freeze accounts of client involved in suspected corporate misconduct

The Securities and Futures Commission (SFC) has taken regulatory action by issuing restriction notices to Futu Securities International (Hong Kong) Limited (Futu) and Interactive Brokers Hong Kong Limited (Interactive). The notices prohibit these brokers from engaging in any transactions or processing assets held in client accounts belonging to a former [...]

Announcement – In relation to the matter of Bao Shen Holdings Limited (Incorporated in the Cayman Islands with limited liability) (Stock Code: 8151) Cancellation of listing

Bao Shen Holdings Limited (Stock Code: 8151), a company incorporated in the Cayman Islands with limited liability, will have its listing cancelled on the Stock Exchange of Hong Kong Limited. The cancellation will take effect from 9:00 am on 29 April 2024, in accordance with GEM Rule 9.14A(1). Trading in [...]

Announcement – In relation to the matter of Seamless Green China (Holdings) Limited (Incorporated in the Cayman Islands and re-domiciled and continued in Bermuda with limited liability) (Stock Code: 8150) Cancellation of listing

Seamless Green China (Holdings) Limited (Stock Code: 8150), a company incorporated in the Cayman Islands and re-domiciled and continued in Bermuda with limited liability, will have its listing cancelled on the Stock Exchange of Hong Kong Limited. The cancellation will take effect from 9:00 am on 29 April 2024, in [...]

Announcement – In relation to the matter of Polyard Petroleum International Group Limited (In Liquidation) (incorporated in the Cayman Islands with limited liability) (Stock Code: 8011) Cancellation of listing

Polyard Petroleum International Group Limited (In Liquidation) (Stock Code: 8011), a company incorporated in the Cayman Islands with limited liability, will have its listing cancelled on the Stock Exchange of Hong Kong Limited. The cancellation will take effect from 9:00 am on 29 April 2024, in accordance with GEM Rule [...]

Announcement – In relation to the matter of Shanghai Dongzheng Automotive Finance Co., Ltd (a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 2718) Cancellation of listing

Shanghai Dongzheng Automotive Finance Co., Ltd (Stock Code: 2718), a joint stock company incorporated in the People’s Republic of China with limited liability, will have its listing cancelled on the Stock Exchange of Hong Kong Limited. The cancellation will take effect from 9:00 am on 29 April 2024, in accordance [...]

Website alert: https://www.bancobursatil.com

The Hong Kong Monetary Authority (HKMA) wants to caution the general public in Hong Kong about a particular firm mentioned on the aforementioned website. It is important to note that this firm does not possess the necessary authorization from the HKMA under the Banking Ordinance to engage in banking activities [...]

Dedicated 100% Loan Guarantee Scheme for Cross-boundary Passenger Transport Trade and Dedicated 100% Loan Guarantee Scheme for Travel Sector Extend Application Period

HKMC Insurance Limited, acting on behalf of the Government, has announced a final extension of the application period for the Dedicated 100% Loan Guarantee Scheme (DLGS) for Cross-boundary Passenger Transport Trade and the DLGS for Travel Sector. The application period for both schemes will now run until 28 October 2024. [...]

Exchange Fund Bills Tender Results

In the recent tender held on 23 April 2024, the Hong Kong Monetary Authority (HKMA) offered EF Bills with issue numbers Q2417 and H2446. For Q2417, which matures on 24 July 2024, an amount of HK$164,600 million was applied, out of which HK$59,076 million was allotted. The average yield accepted [...]

Website and Mobile Application (App) Alert – Fraudulent website and mobile application (App) related to Chong Hing Bank Limited

The Hong Kong Monetary Authority (HKMA) is issuing a public alert regarding a press release issued by Chong Hing Bank Limited concerning a fraudulent website and a mobile application (App). The HKMA has been informed about these fraudulent activities and has provided a hyperlink to the press release on its [...]

SFC cautions public against bogus calls purportedly from SFC

The Securities and Futures Commission (SFC) is issuing a strong warning to the public regarding fraudulent calls falsely claiming to be from a financial regulator. The SFC has recently reported a case to the Police where an individual received a bogus voice message call alleging irregularities in their stock trading [...]

Insurance Authority meets with Monetary Authority of Macao to discuss issues of common interest on conduct of insurance business and enforcement

April 22, 2024

Last week, a delegation consisting of Mr. Peter Gregoire, who serves as the Head of Market Conduct and General Counsel at the Insurance Authority (IA), and Ms. Maria Tsui, the Head of Enforcement at the IA, led a group of colleagues involved in conduct and enforcement to hold a meeting [...]

Announcement – In Relation to the Matter of Silk Road Logistics Holdings Limited (Incorporated in the Bermuda with Limited Liability) (Stock Code: 988)

The Stock Exchange of Hong Kong has announced the cancellation of the listing of Silk Road Logistics Holdings Limited, effective from 9:00 am on April 23, 2024. The cancellation is being carried out under Rule 6.01A(1) due to the company’s failure to resume trading in its shares by November 23, [...]

SFC welcomes SEHK’s conclusions on climate-related disclosure requirements for listed companies

The Securities and Futures Commission (SFC) has expressed its approval of the Stock Exchange of Hong Kong Limited’s (SEHK) consultation conclusions on enhancing climate-related disclosure requirements for listed companies in Hong Kong. These new requirements, to be implemented in phases starting from 1 January 2025, mark the first step towards [...]

SFC welcomes CSRC’s announcement of five measures on capital market cooperation with Hong Kong

The Securities and Futures Commission (SFC) has welcomed the five measures announced by the China Securities Regulatory Commission (CSRC) to strengthen the Stock Connect and support Hong Kong’s position as an international financial center. The measures include expanding the range of eligible exchange-traded funds (ETFs) and incorporating real estate investment [...]

HKMA and SFC consult on annual updates to Financial Services Providers list under OTC derivatives regulatory regime

The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) have collaborated on a joint consultation regarding the annual update to the list of Financial Services Providers (FSP) under the over-the-counter (OTC) derivatives clearing regime. The introduction of the FSP concept within the clearing regime aims to identify [...]

HKMA welcomes the commencement of service of “Credit Data Smart”

The Hong Kong Monetary Authority (HKMA) has expressed its support for the launch of “Credit Data Smart” on April 26. This initiative is a result of collaboration between the Hong Kong Association of Banks, the Hong Kong Association of Restricted Licence Banks and Deposit-taking Companies, and the Hong Kong S.A.R. [...]

Composite Interest Rate: End of March 2024

April 18, 2024

The Hong Kong Monetary Authority (HKMA) has reported that the composite interest rate, which represents the average cost of funds for banks, dropped by 5 basis points to 2.73% at the end of March 2024. This decrease is compared to the rate of 2.78% recorded at the end of February [...]

Exchange Fund Bills Tender Results

April 16, 2024

In the recent round of tenders held by the Hong Kong Monetary Authority, two series of Exchange Fund Bills (EF Bills) were offered for subscription. The first series, with the issue number Q2416, had a tender date of 16 April 2024 and a maturity date of 17 July 2024. The [...]

Insurance Authority hosts Insurance-linked Securities Conference to promote Hong Kong as an emerging ILS domicile

April 13, 2024

The Insurance Authority (IA) hosted the first-ever Insurance-linked Securities (ILS) Conference in Hong Kong, tailored for institutional investors and professional service providers. Mr. Stephen Yiu, Chairman of the IA, emphasized the appeal of ILS as an asset class due to climate change and financial volatilities. He encouraged participants to take [...]

Exchange Publishes Conclusions on Proposed Amendments to Listing Rules Relating to Treasury Shares

April 13, 2024

The Stock Exchange of Hong Kong has garnered significant market support for the introduction of a new treasury share regime. This regime, effective from June 11, 2024, grants issuers greater flexibility in managing their capital structure through share buy-backs and resales of treasury shares. The changes aim to maintain a [...]

Analytical Accounts of the Exchange Fund

April 12, 2024

The Hong Kong Monetary Authority (HKMA) released the key analytical accounts of the Exchange Fund at the end of March 2024. Foreign assets of the Exchange Fund decreased by HK$11.7 billion to HK$3,521.2 billion during the month. The Monetary Base, which includes Certificates of Indebtedness, government-issued currency notes and coins, [...]

HKMA, HKIMR and HKUST co-organise the International Conference on Central Bank Digital Currencies and Payment Systems

April 11, 2024

The Hong Kong Monetary Authority (HKMA), the Hong Kong Institute for Monetary and Financial Research (HKIMR), and the Hong Kong University of Science and Technology (HKUST) successfully co-organised the International Conference on Central Bank Digital Currencies (CBDCs) and Payment Systems. Attended by over 100 representatives from central banks, international bodies, [...]

Anti-Scam Consumer Protection Charter 2.0

April 10, 2024

The Hong Kong Monetary Authority (HKMA) and the Hong Kong Association of Banks (HKAB) have launched the Anti-Scam Consumer Protection Charter 2.0. Building on the success of the previous charter, the new version expands the coverage by involving over 230 financial institutions and merchant institutions from various sectors. The Charter [...]

Exchange Fund Bills Tender Results

April 10, 2024

In the Exchange Fund Bills Tender Results announced on 9 April 2024, three issues of EF Bills were offered. The first issue, Q2415, had a maturity date of 10 July 2024. The total amount applied was HK$164,650 million, of which HK$63,968 million was allotted. The average yield accepted was 4.31%, [...]

Hong Kong’s Latest Foreign Currency Reserve Assets Figures Released

April 9, 2024

The Hong Kong Monetary Authority (HKMA) announced today (9 April) that the official foreign currency reserve assets of Hong Kong amounted to US$423.6 billion as at the end of March 2024 (end-February 2024: US$425.2 billion) (Annex). Including unsettled foreign exchange contracts, the foreign currency reserve assets of Hong Kong at the [...]

HKMA 2024 Pay Review

April 9, 2024

The Hong Kong Monetary Authority (HKMA) has announced the results of its 2024 annual pay review. The review was conducted by the Governance Sub-Committee (GSC) of the Exchange Fund Advisory Committee (EFAC) and approved by the Financial Secretary. As part of the pay adjustment, the Fixed Pay of HKMA staff [...]

Announcement – In Relation to the Matter of Wah Ha Realty Company Limited (Incorporated in Hong Kong with Limited Liability) (Stock Code: 278)

April 8, 2024

The Stock Exchange of Hong Kong Limited has announced that the listing of Wah Ha Realty Company Limited’s shares will be cancelled under Rule 6.01A(1), effective from 9:00 am on April 11, 2024. Trading in the company’s shares had been suspended since September 15, 2022, and as the company failed [...]

HKEX reminder of deadline for applications to the listing and listing review committee

March 15, 2024

The Listing Nominating Committee of the Stock Exchange of Hong Kong limited, reminds potential applicants that the deadline for submitting applications for nomination to the listing committee or listing review committee is April 8 2024. The listing nominating committee is seeking listing committee candidates for: overseeing listing division; providing policy [...]

HKMA launches the stablecoin issuer sandbox arrangement

March 13, 2024

HKMA announced the launch of stablecoin issuer sandbox. Through implementing the regulatory regime proposal for stablecoin issuer, the regulatory wishes to leverage the sandbox to communicate supervisory expectations to parties interested in issuing fiat referenced stablecoins in Hong Kong and obtaining feedback from participants on proposed regulatory requirements. The sandbox [...]

Virtual Asset Trading Platform application has ended for transitional period.

March 4, 2024

The deadline for license applications to the SFC of virtual asset trading platform (VATP) to operate after June 1 2024 has ended. Virtual Asset Trading Platform that are operating in Hong Kong but did not submit license applications to the SFC by February 29 2024 must close down their business [...]

Green Fintech launch showcases Hong Kong edge in sustainable finance.

March 4, 2024

The Green and Sustainable Finance Cross – Agency Steering Group (Steering Group) today launched the Prototype Hong Kong Green Fintech Map with Cyberport and Invest Hong Kong (Invest HK) to help corporates and financial identify green and sustainable financial technology (Green Fintech) solutions to meet their business needs. The Map [...]

Suspension of CCASS Services on 16 Mar, 23 Mar, 06 Apr, 13 Apr 2024 (Saturday)

February 26, 2024

To facilitate the internal system testing and upgrade, the CCASS online services will be suspended on the following Saturdays: March 16, March 23, April 06, April 13. The CCASS Production reports will be available on the following Mondays. Participants should inform its relevant IT support about this arrangement for necessary [...]

The Financial Secretary has appointed three new members to Standing Committee on Company Law Reform

February 19, 2024

The Standing Committee on Company Law Reform (SCCLR) was set up in 1984. It advises the Financial Secretary on amendments to the Companies Ordinance and the Companies Ordinance, as well as amendments to the Securities and Futures Ordinance on matters relating to corporate governance and shareholders’ protection, as and when [...]

Listing shares of LET Group Holdings Limited and Summit Ascent Holdings Limited suspended from Stock Exchange of Hong Kong

February 19, 2024

Due to concerns regarding a very substantial disposal of a major asset of LET Group Holdings and Summit Ascent Limited, the sale of assets in Russia for US$116 million. The substantial disposal is subject to the reporting, announcement, circular and approval of shareholders of both companies under Chapter 14 of [...]

Hong Kong Government welcomes public comments and opinions on proposed virtual asset trading platform regulations.

February 19, 2024

The virtual asset is fast evolving in Hong Kong. On February 8th 2024. The Financial Services and Treasury Bureau of Hong Kong issued a public consultation paper for public views of proposals to regulate the trading of virtual assets. Currently established regulations of virtual asset include a licensing regime operated [...]

The insurance authority bans broker representative license for fabricating certificate document.

February 10, 2024

On 12 January 2022, A former technical representative of a broker company, Mr Ma assisted a client to purchase professional liability and compensation insurance. Mr Ma obtained a quotation from an insurer for the insurance. He claimed the client accepted the quotation and that the insurer was informed about it. [...]

SFC warns public of virtual asset trading platform MECX as suspected virtual asset related fraud.

February 10, 2024

The Securities and Future Commission SFC today warned the public of an entity purporting to operate under the name ”MECX” virtual asset trading platform. Investors interested in cryptocurrency was asked to join social media or free investment advice, victims then were asked to deposit funds into designated bank accounts for [...]

SFC urges investor to check regulatory status of virtual asset trading platforms as transition period will end soon

February 9, 2024

The Securities and Future Commission wishes to remind investors to only trade virtual asset on SFC licensed virtual trading platform. In Particular, investors should check whether a VATP virtual asset trading platform is on the “List of licensed virtual trading platform. ” or on the “List of virtual trading platform [...]

SFC regulatory symposium to debut in late February

The Securities and Futures Commission (SFC) is set to host the inaugural SFC Regional Securities Regulatory Leadership Symposium in Hong Kong on 28 February 2024. The event, celebrating the SFC’s 35th anniversary, will promote dialogue between Asian and European regulators and financial industry leaders. The symposium will feature guest speakers [...]

The Stock Exchange of Hong Kong cancels 2 listings of company shares due to failure of resumption guidance

HKEX cancels listing of the share of Universal Star (Holding) Limited, stock code :2345 under Rule 6.01A, effectively from 9:00am 26 January 2024. On 3 November 2023, the Company sought a review of the Listing Committee’s decision by the Listing Review Committee. On 15 January 2024, the Company withdrew its [...]

Guidance to licensed corporations in Wealth Management Connect scheme

The Securities and Futures Commission (SFC) has announced eligibility criteria and guidance for licensed corporations to participate in the Cross-boundary Wealth Management Connect Pilot Scheme (WMC Scheme) in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The revised Implementation Arrangements published by the People’s Bank of China for the WMC Pilot [...]

Circularisation exercise and internal control review

The Securities and Futures Commission (SFC) will conduct a circularisation exercise on clients’ accounts of selected securities brokers in February 2024, focusing on client asset protection. The SFC prioritizes client asset protection in supervising licensed corporations (LCs), and conducts regular circularisation exercises to obtain confirmations from clients and identify potential [...]

Circular to Licensed Corporations Participation in Cross-Boundary Wealth Management Connect Pilot Scheme

The People’s Bank of China has revised its Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (Cross-Boundary WMC) to enhance the scheme. The changes include allowing eligible licensed corporations to participate, expanding the eligible investment product scope, and clarifying promotion and [...]

Circular to licensed corporations – Deferral of margin requirements for non-centrally cleared equity options

January 19, 2024

The SFC will delay the effective date of its margin requirements for non-centrally cleared single-stock options, equity basket options, and equity index options by two years to 4 January 2026. This move is in line with global developments, as the UK’s Prudential Regulation Authority and Financial Conduct Authority extended temporary [...]

Circular on SFC-authorised Funds with Exposure to Virtual Assets

January 10, 2024

The Securities and Futures Commission (SFC) has issued a circular outlining requirements for SFC-authorised funds with exposure to virtual assets (VA) of more than 10% of their net asset value for public offerings in Hong Kong. The circular supersedes the Circular on Virtual Asset Futures Exchange Traded Funds issued on [...]

Circular to Management Companies of SFC-authorised Unit Trusts and Mutual Funds – Updated Guidance on Streamlined Measures for SFC-authorised Funds

January 10, 2024

The Securities and Futures Commission (SFC) has updated its guidance to improve operational efficiency and approval processes for SFC-authorised funds. The updated guidance includes streamlined measures for appointment of investment delegates, UCITS1 funds, post-authorisation notifications, derivative investments, and disclosure guidance. The new guidance classifies applications for appointing new investment delegates [...]

Circular to Management Companies of SFC-authorised Exchange Traded Funds (“ETFs”) – List of Potential Events Triggering Ongoing Disclosure

January 10, 2024

This circular outlines the obligations of management companies of SFC-authorised Exchange Traded Funds (ETFs) to provide shareholders with reasonable prior notice or information about the scheme to enable them to appraise its position. It also outlines the rules governing the listing of securities on the Hong Kong Stock Exchange (HKEX) [...]

Circular to Intermediaries SFC and HKMA joint Product Survey 2023

December 11, 2023

The SFC and the HKMA will conduct a joint survey in 2023 to gather information about the selling activities of intermediaries. The survey will focus on the sale of non-exchange-traded investment products to investors who are not institutional professional investors. Intermediaries will be required to complete a questionnaire consisting of [...]

Enhancements to the Code of Banking Practice

December 8, 2023

The HKMA has welcomed the launch of the revised Code of Banking Practice by the Hong Kong Association of Banks (HKAB) and the DTC Association (DTCA). The Code aims to enhance customer experience and promote good banking practices in the Hong Kong banking industry. The enhancements include improved consumer protection [...]

Insurance Authority Consults the Public on Subsidiary Legislation for the Risk-Based Capital Regime Related to Requirements on Valuation, Capital and Regulatory Submissions

December 6, 2023

The IA has launched a public consultation on draft legislation for the Risk-based Capital (RBC) regime. The draft rules cover capital adequacy requirements, valuation of assets and liabilities, and submission of statements and reports to the IA. The RBC regime aims to enhance the financial stability of insurers, align Hong [...]

Circular in Relation to the Clearing and Record Keeping Rules for the OTC Derivatives Regime – Changes to the List of Persons Designated as Financial Services Providers

December 4, 2023

On December 1, 2023, the revised list of financial services providers (FSPs) for the OTC derivatives regime was published and will come into effect on January 1, 2024. Licensed persons are reminded that if their average total position in OTC derivatives meets the Clearing Threshold during a Calculation Period, relevant [...]

HKEX Publishes Consultation Paper on Securities and Derivatives Trading Under Severe Weather Conditions

December 1, 2023

HKEX has published a consultation paper outlining proposals for its securities and derivatives markets to remain operational during severe weather conditions. The paper suggests that the markets, including Stock Connect, derivatives holiday trading, and after-hours trading, should remain open with necessary adjustments made for the closure of physical outlets. The [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Webinar Materials

December 1, 2023

The SFC has made available the presentation materials from the recent Anti-Money Laundering and Counter-Financing of Terrorism Webinar on their website. The materials were presented by SFC staff and external parties, including representatives from the Commerce and Economic Development Bureau, the Commercial Crime Bureau, and the Financial Intelligence and Investigation [...]

Exchange Publishes the Guide for New Listing Applicants

November 30, 2023

The Stock Exchange of Hong Kong Limited (Exchange) has published the Guide for New Listing Applicants, consolidating and improving existing guidance letters and listing decisions related to new listings. The Guide aims to support applicants and their advisors in understanding the Exchange’s interpretation of Listing Rules and disclosure requirements, enabling [...]

HKEX Adds Indonesia Stock Exchange as Recognised Stock Exchange

November 27, 2023

HKEX has announced that it has added the Indonesia Stock Exchange (IDX) as a Recognised Stock Exchange (RSE). This recognition allows companies listed on the IDX to apply for a secondary listing in Hong Kong. This move strengthens the cross-listing opportunities between the two exchanges and provides domestic Indonesian companies [...]

The HKMA and Banking Sector Support the Launch of Anti-Deception Alliance to Fight Against Fraud

November 27, 2023

The HKMA, along with the Hong Kong Association of Banks (HKAB) and the banking sector, supports the launch of the Anti-Deception Alliance (ADA) by the Hong Kong Police Force (HKPF). The ADA aims to enhance the anti-money laundering ecosystem’s ability to detect, disrupt, and deter scams. By bringing together the [...]

Hong Kong to Launch China Treasury Bond Futures

November 27, 2023

Hong Kong will soon introduce China treasury bond futures contracts, as announced by the SFC. HKEX is currently preparing for the launch by proposing necessary rule amendments. The move comes as offshore investors’ holdings of China treasury bonds have been increasing steadily, and there is a growing demand for hedging [...]

Strengthening Fintech Co-operation between the Hong Kong Monetary Authority and the Financial Services Regulatory Authority of Abu Dhabi Global Market

November 23, 2023

The HKMA and the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) have signed a Memorandum of Understanding (MoU) to enhance cooperation in fintech. The MoU aims to promote inclusive and innovative financial services by leveraging fintech and data in both markets. The authorities will explore joint projects, [...]

Exchange Implements IPO “Double Dipping” Reforms

November 22, 2023

The SEHK has implemented reforms to allow for “double dipping” in IPOs under specific conditions, which will have immediate effect. The new exemption aims to enhance the IPO price discovery process by encouraging greater participation from independent investors. The exemption permits existing shareholders and cornerstone investors of a new applicant [...]

HKEX to Implement Enhancements to Derivatives Market Position Limits

November 21, 2023

HKEX has announced that it will be implementing enhancements to position limits in Hong Kong’s derivatives market. These changes aim to strengthen Hong Kong’s position as Asia’s leading derivatives trading and risk management center. The enhancements, which will take effect on December 22, 2023, include a 5-tier position limit model [...]

New Regulations for Document Delivery to the Registrar of Companies: Updates on Electronic and Physical Formats

November 20, 2023

On 17 November 2023, several new regulations were introduced regarding the delivery of documents in electronic or physical form to the Registrar of Companies for registration. These regulations include G.N. 6930, which specifies requirements for electronic document delivery under the Securities and Futures (Open-ended Fund Companies) Rules and the Companies [...]

Exchange Publishes its Latest Review of Issuers’ Corporate Governance Practices and New INED Guide

November 20, 2023

HKEX has released its latest review of issuers’ corporate governance practices and a new guide for independent non-executive directors (INEDs). The review provides guidance to issuers on improving their corporate governance practices, focusing on compliance with the new requirements introduced to the Corporate Governance Code in 2022. Key findings include [...]

Hong Kong Academy of Finance’s 2024 Intake of the Financial Leaders Programme is Open for Application

November 16, 2023

The Hong Kong Academy of Finance has announced that applications are now open for the 2024 intake of the Financial Leaders Programme (FLP). The FLP is a part-time program lasting approximately nine months, aimed at inspiring and equipping financial talents with a macro perspective and leadership mindset. Each year, around [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism: Updated AML/CFT Self-Assessment Checklist

November 15, 2023

The SFC has released an updated AML/CFT Self-Assessment Checklist, which aligns with the latest Guideline on Anti-Money Laundering and Counter-Financing of Terrorism. The checklist is designed to help licensed corporations, SFC-licensed virtual asset service providers, and associated entities evaluate their compliance with AML/CFT requirements. It is recommended that these entities [...]

SFC Inaugurates Forum on Sustainability Disclosures

November 14, 2023

The SFC organized its first Forum on Sustainability Disclosures to gather market perspectives on establishing a sustainability disclosure framework in Hong Kong and to enhance industry readiness and awareness of sustainable reporting in line with global standards. The forum emphasized the benefits and challenges of adopting international sustainability reporting and [...]

Asian Insurance Forum 2023 to Ignite Insightful Dialogue on Strengthening Global Financial Stability and Resilience

November 13, 2023

The IA is set to host the Asian Insurance Forum (AIF) on December 8, 2023, themed “Striving for Enhanced Global Financial Stability and Resilience”. The event will gather experts from the insurance and financial industry, academia, financial regulators, and government authorities to discuss the future of the insurance world and [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism

November 13, 2023

The Financial Action Task Force (FATF) has identified high-risk jurisdictions requiring enhanced due diligence and countermeasures to address money laundering, terrorist financing, and proliferation financing risks. Additionally, they are closely monitoring specific countries and have made updates regarding their inclusion and removal. The recent FATF Plenary resulted in agreements on [...]

Deepening Fintech Innovation Supervisory Cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area

November 10, 2023

The Hong Kong Monetary Authority (HKMA), the People’s Bank of China (PBoC), and the Monetary Authority of Macao (AMCM) have signed a Memorandum of Understanding (MoU) to deepen fintech innovation supervisory cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The MoU establishes a network that connects the PBoC’s Fintech [...]

Circular to Licensed Corporations on Prudent Risk Management in Providing IPO Subscription Services

November 9, 2023

The SFC has reminded licensed corporations to manage risks carefully when providing IPO subscription services and financing to clients with the launch of HKEX’s Fast Interface for New Issuance (FINI). Although the pre-funding mechanism for public offer tranches will be modified under FINI, LCs must still exercise prudent risk management [...]

Update on Consultation on Enhancement of Climate Disclosures under ESG Framework

November 6, 2023

HKEX has updated its consultation on enhancing climate disclosures under the ESG framework. They will consider the final ISSB Climate Standard and postpone the implementation date for Listing Rule amendments to 2025. The Hong Kong government will work with regulators to adopt ISSB standards, and the exchange will contribute to [...]

Monetary Authority Announces Countercyclical Capital Buffer Ratio for Hong Kong

November 6, 2023

HKMA has announced that the countercyclical capital buffer (CCyB) ratio for Hong Kong will remain unchanged at 1%. While indicators suggest that overheating risks in Hong Kong are contained, uncertainties in the global environment have increased. With plans to transition to a Positive Neutral CCyB of 1% in 2024, it [...]

Hong Kong FinTech Week 2023

The HKMA co-organized Hong Kong FinTech Week 2023 with InvestHK this week, providing global participants with opportunities to collaborate, exchange ideas, and share fintech experiences. During the event, the HKMA announced initiatives to enhance Hong Kong’s fintech capabilities, including the launch of FPS x PromptPay QR Payment, exploring tokenization in [...]

Circular on Tokenisation of SFC-Authorised Investment Products

This circular outlines the requirements for tokenization of investment products authorized by the SFC in Hong Kong. The SFC is open to allowing primary dealing of tokenized SFC-authorized investment products, as long as the underlying product meets all applicable requirements and additional safeguards are in place. However, secondary trading of [...]

Circular on Intermediaries Engaging in Tokenised Securities-Related Activities

The SFC’s circular acknowledges the interest in tokenizing traditional financial instruments using distributed ledger technology (DLT). While tokenization offers benefits, it also presents risks therefore, the SFC supports intermediaries conducting pilots in tokenizing securities and aims to address associated risks. Tokenized securities are subject to existing regulations, and intermediaries should [...]

HKEX Plans to Develop Integrated Fund Platform for Distribution of Hong Kong Retail Funds

HKEX has announced plans to develop an integrated fund platform for the distribution of retail funds in Hong Kong. The platform aims to lower barriers to entry in the industry and enable market participants to better distribute fund products to their clients. This will provide investors with a wider range [...]

SFC Consults Further on Proposed Amendments for Implementing an Uncertificated Securities Market

November 1, 2023

The SFC has launched a new consultation on implementing an uncertificated securities market (USM) in Hong Kong. The consultation seeks feedback on proposed amendments to the Code of Conduct for Share Registrars and the Guidelines for Electronic Public Offerings, specifically related to the regulation of approved securities registrars under the [...]

HKMA Publishes the “e-HKD Pilot Programme Phase 1 Report”

October 31, 2023

The HKMA has released the “e-HKD Pilot Programme Phase 1 Report,” which discusses the findings and assessment of 14 pilots conducted by 16 participating firms. The report highlights the potential benefits of an e-HKD, including faster and more cost-efficient transactions, programmability, tokenization, and enabling new economic transactions. However, the pilots [...]

Exchange Publishes Consultation Paper on Proposed Amendments to Listing Rules Relating to Treasury Shares and Guidance Letter on Issuers’ Automatic Share Buy-back Programs

October 30, 2023

The SEHK has published a consultation paper seeking market feedback on proposed amendments to introduce a new treasury share regime. The consultation period will end on 27 December 2023. The Exchange has also issued a guidance letter on issuers’ automatic share buy-back programs. These initiatives aim to provide issuers with [...]

Circular on Clearing Amendment Rules

October 30, 2023

The SFC’s Circular on Clearing Amendment Rules has been gazetted and these amendments will come into effect on 1 July 2024, pending approval by the Legislative Council. The Clearing Amendment Rules specify conditions under which certain interest rate swap transactions referencing alternative reference rates will be subject to clearing obligations. [...]

Insurance Authority signs Memorandum of Understanding with Independent Commission Against Corruption to Strengthen Cooperation to Combat Corruption

October 27, 2023

The Insurance Authority (IA) and the Independent Commission Against Corruption (ICAC) have signed a memorandum of understanding (MoU) to enhance cooperation in combating corruption in the insurance industry. The MoU covers various aspects, including case referrals, joint investigations, information exchange, and expert assistance. With over 164 authorized insurers and 110,000 [...]

Partial principal repayment arrangement for SME Financing Guarantee Scheme

October 26, 2023

In “The Chief Executive’s 2023 Policy Address,” the Chief Executive announced that the SME Financing Guarantee Scheme (SFGS) will offer more flexible repayment options. This includes the ability for enterprises to choose to repay only 10%, 20%, or 50% of the original principal repayment amount each month for a specified [...]

Circular on Disclosure / Use of Annualised Returns for Money Market Funds

October 26, 2023

The SFC has published a circular providing guidance on the disclosure/use of annualised returns for authorised money market funds (MMFs). The SFC has received inquiries about presenting annualised returns for periods of less than one year, such as a seven-day period, due to increased investor demand. The circular outlines general [...]

Circular on distributors providing additional returns and other services or arrangements when marketing SFC-authorised funds

October 25, 2023

The Securities and Futures Commission (SFC) has issued a circular summarizing its recent observations of licensed corporations’ practices in offering and promoting SFC-authorized funds. The circular highlights concerns regarding distributors offering additional returns or incentives that divert clients’ focus from considering the risks and features of the underlying funds. It [...]

Joint circular on intermediaries’ virtual asset-related activities

October 24, 2023

The SFC and HKMA have updated their policy on virtual asset-related activities for intermediaries, emphasizing the risks associated with investing in virtual assets and proposing additional investor protection measures. Intermediaries providing virtual asset-related products and services must comply with suitability obligations, conduct due diligence, and provide clear information and risk [...]

Memorandum of Understanding to support cross-border financing by Chinese enterprises and promote the development of the Hong Kong bond market between the NDRC and the HKMA

October 20, 2023

The National Development and Reform Commission (NDRC) and the Hong Kong Monetary Authority (HKMA) have signed a Memorandum of Understanding (MOU) to support cross-border financing by Chinese enterprises and promote the development of the Hong Kong bond market. The MOU aims to strengthen communication and cooperation between the two authorities [...]

Ministry of Finance issues Renminbi Sovereign Bonds through Central Moneymarkets Unit of Hong Kong Monetary Authority

October 18, 2023

The Ministry of Finance of the People’s Republic of China will issue Renminbi Sovereign Bonds through the Hong Kong Monetary Authority’s Central Moneymarkets Unit. The tender will be held on October 25, 2023, with settlement on October 27, 2023. The bonds available for tender include Additional 2025, 2026, 2028, and [...]

Tentative issuance schedule for HKSAR Government Bonds under the Institutional Bond Issuance Programme

October 17, 2023

The Hong Kong Monetary Authority (HKMA) has released a tentative issuance schedule for Government Bonds (GBs) under the Institutional Bond Issuance Programme for the period from October 2023 to March 2024. The schedule includes information on tenors, tender dates, issuance sizes, issue dates, and methods of issuance for each GB [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Anti-Money Laundering and Counter-Financing of Terrorism Webinar

October 17, 2023

The Securities and Futures Commission (SFC) will be hosting two sessions of an anti-money laundering and counter-financing of terrorism (AML/CFT) webinar on 15 and 16 November 2023. The webinar aims to provide updates on AML/CFT regulatory developments, share supervisory observations, discuss the latest scam trends and victim identification, present the [...]

HKEX Publishes Research Paper on Development Potential of Offshore Mainland China REITs in Hong Kong

October 13, 2023

The conclusions of the paper were that REITs offer investors the opportunity to diversify their portfolios and access a variety of properties with different valuations and investment returns. They serve as an alternative investment option to equities and bonds, providing diversification benefits. The development of the REIT market relies heavily [...]

SFC consults on market sounding guidelines

October 12, 2023

The SFC has launched a consultation on proposed guidelines for market soundings. These guidelines aim to provide clarity on regulatory expectations and help intermediaries comply with the principle of conducting business activities honestly, fairly, and in the best interests of clients and market integrity during market soundings. The proposals require [...]

HKEX Launches Synapse, A Settlement Acceleration Platform for Stock Connect

October 5, 2023

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the launch of HKEX Synapse, an integrated settlement acceleration platform that aims to improve market efficiency and transparency. Synapse, which will be launched on October 9, 2023, utilizes DAML smart contracts to standardize and streamline post-trade workflows, reducing settlement risks and [...]

HKPF and SFC establish joint working group on VATPs

October 5, 2023

The Securities and Futures Commission (SFC) and the Hong Kong Police Force (HKPF) have formed a dedicated working group to improve cooperation in monitoring and investigating illegal activities related to Virtual Asset Trading Platforms (VATPs). The working group consists of representatives from various divisions of both organizations. Its main objectives [...]

SFC Publishes Lists of Virtual Asset Trading Platforms

October 3, 2023

The Securities and Futures Commission (SFC) has released several lists of virtual asset trading platforms (VATPs) on its website. These lists aim to provide clear, transparent, and timely information about VATPs. The lists include the names of licensed VATP operators, VATP applicants awaiting approval, applicants whose applications have been returned, [...]

HKEX Adds Saudi Exchange as Recognised Stock Exchange

September 29, 2023

The Stock Exchange of Hong Kong Limited (the Exchange), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), has announced the addition of the Saudi Exchange (Tadawul) as a Recognised Stock Exchange (RSE). This recognition allows companies listed on the Saudi Exchange’s Main Market to apply for a secondary [...]

HKMA Quarterly Bulletin and Half-Yearly Monetary and Financial Stability Report (September 2023 Issue)

September 29, 2023

Today, the Hong Kong Monetary Authority (HKMA) released the September 2023 edition of its Quarterly Bulletin and Half-Yearly Monetary and Financial Stability Report. The Quarterly Bulletin includes a feature article titled “The HKMA’s e-HKD Journey—Progressing Steadily.” The Half-Yearly Report offers comprehensive analyses of the global and local economy, monetary and [...]

Enhancements to the Cross-boundary Wealth Management Connect Pilot Scheme Strengthening Financial Market Connectivity in the GBA

September 29, 2023

To promote the development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and strengthen financial cooperation between Mainland China, Hong Kong, and Macao, several financial regulatory bodies have decided to enhance the Cross-boundary Wealth Management Connect Pilot Scheme. The key measures include expanding eligibility criteria for investors, allowing securities firms [...]

Keynote Address at the ISDA Derivatives Trading Forum Hong Kong

September 28, 2023

Darryl Chan, Deputy Chief Executive of the Hong Kong Monetary Authority, discussed market developments at the ISDA Derivatives Trading Forum. Hong Kong ranks as the fourth largest global foreign exchange market and the third largest over-the-counter interest rate derivatives market. It hosts the world’s largest offshore RMB interest rate derivatives [...]

SFC-HKMA joint product survey in 2022 shows shifts to investments in money market funds

September 28, 2023

The SFC and HKMA conducted a joint survey on the sale of non-exchange traded investment products by LCs and RIs in 2022. Money market funds were the most popular collective investment schemes, accounting for 61% of the top five CIS transaction amount. Bond funds and equity funds followed, comprising 14% [...]

HKEX FINI to launch on 22 November

September 28, 2023

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the launch date for FINI, a new digitalized IPO settlement platform in Hong Kong. Starting from November 22, 2023, all new listings with prospectuses published on or after this date will be processed on the FINI platform. This initiative aims to [...]

Exchange Publishes Consultation Paper on GEM Listing Reforms

September 27, 2023

The Stock Exchange of Hong Kong has published a consultation paper seeking market feedback on proposed reforms for the Growth Enterprise Market (GEM) listing. The proposals aim to enhance GEM’s appeal to issuers while maintaining high standards of investor protection. Key proposals include a streamlined transfer mechanism for eligible GEM [...]

The Sixth Hong Kong-Switzerland Financial Dialogue

September 27, 2023

The HKMA has released a press-release regarding the sixth Hong Kong-Switzerland Financial Dialogue took place in Bern, Switzerland on September 25. Co-organized by the Hong Kong Monetary Authority (HKMA) and the State Secretariat for International Finance (SIF) of Switzerland, the Dialogue aimed to enhance collaboration in financial services between the [...]

Enabling Innovation in the Asset Management Industry

September 27, 2023

On September 26th, Christina Choi of the SFC made a speech at the Bloomberg Buy-Side Forum regarding Enabling Innovation in the Asset Management Industry. The speech discusses the concept of tokenization in the asset management industry, specifically in relation to SFC-authorized products like public funds. Tokenization involves creating blockchain-based tokens [...]

AML/CFT Regtech: Case Studies and Insights Volume 2

September 25, 2023

The Hong Kong Monetary Authority (HKMA) has published a report titled “AML/CFT Regtech: Case Studies and Insights Volume 2.” It showcases how banks in Hong Kong have adopted Regtech solutions to enhance their Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) efforts. The report covers four key areas of Regtech implementation: [...]

HKMA Designates Market Makers for Southbound Trading under Bond Connect

September 25, 2023

The Hong Kong Monetary Authority (HKMA) has added nine financial institutions as designated market makers for Southbound Trading under Bond Connect, increasing the total number from 13 to 22. These market makers provide secondary liquidity, support smooth operations, and enhance cross-boundary financial connectivity. The selection process considers criteria such as [...]

SFC steps up information dissemination and investor education on VATPs

September 25, 2023

The Securities and Futures Commission (SFC) is taking measures to address concerns about unregulated virtual asset trading platforms (VATPs). They aim to reinforce information dissemination and investor education. The SFC acknowledges the benefits and risks of virtual asset activities and has implemented a comprehensive regulatory framework since 2017. They have [...]

Revision of Companies Registry Forms

September 22, 2023

The Hong Kong Companies Registry (HKCR) releases Gazette Notices notifying that forms have been revised under section 23 of the Companies Ordinance (Chapter 622), rule 21 of the Securities and Futures (Open-ended Fund Companies) Rules (Chapter 571AQ) and section 2A of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter [...]

HKMA launches Green Fintech Competition

September 22, 2023

The Hong Kong Monetary Authority (HKMA) has launched the Green Fintech Competition to promote the adoption of green fintech solutions in the local banking industry. The competition focuses on four themes: Net-zero Transition, Climate Risk Management, Green and Sustainable Finance, and Sustainability or Climate-related Disclosure and Reporting. Green fintech firms [...]

SFC amends takeovers and share buy-backs codes

September 22, 2023

The Securities and Futures Commission (SFC) has released the consultation conclusions on proposed amendments to the Codes on Takeovers and Mergers and Share Buy-backs. The amended Codes will be published on September 29, 2023, and take effect immediately. The amendments codify existing practices, clarify definitions, streamline processes, and introduce green [...]

Statement on JPEX

September 21, 2023

The Securities and Futures Commission (SFC) has released a statement regarding concerns about suspicious practices and activities by JPEX, an unregulated virtual asset trading platform. The SFC expressed disappointment that JPEX has publicly shared confidential correspondence between the SFC’s Enforcement Division and JPEX, which violates the secrecy and confidentiality provisions [...]

Launch of the Open Application Programming Interface Framework and the Central Register for the Insurance Sector

September 19, 2023

The insurance industry has widely adopted Open Application Programming Interface (API) technology to enhance services and integrate data. To support the growth of the Insurtech ecosystem, the Insurance Authority (IA) has collaborated with industry stakeholders to develop the Open API Framework. This framework provides guidance on integrating Open API into [...]

Alert: Misrepresentation by crypto firms using the word “bank”

September 18, 2023

The Hong Kong Monetary Authority (HKMA) warns the public about crypto firms falsely claiming to be banks or offering deposits. Using terms like “crypto bank” or “digital asset bank,” these firms mislead people into thinking they are authorized banks in Hong Kong. Only licensed banks and authorized institutions can conduct [...]

Circular to intermediaries – Cybersecurity review of selected licensed corporations

September 15, 2023

The Securities and Futures Commission (SFC) will begin reviewing the cybersecurity practices of licensed corporations (LCs) to evaluate their compliance with cybersecurity regulations and the strength of their information systems against cyber threats. The SFC emphasizes the importance of cybersecurity in its oversight of LCs, who are expected to adhere [...]

Insurance specialists explore Hong Kong’s role in offering professional risk management services in support of Belt and Road development

September 14, 2023

The Insurance Authority (IA) hosted a breakout session at the Belt and Road Summit, focusing on risk management challenges for Belt and Road projects and Hong Kong’s solutions. The panel discussed navigating complex risk landscapes, Hong Kong’s specialty risk solutions, and the benefits of setting up captive insurance companies. Topics [...]

HKMA publishes joint report on Project Sela

September 14, 2023

The Hong Kong Monetary Authority (HKMA), the Bank of Israel (BOI), and the Bank for International Settlements Innovation Hub (BISIH) Hong Kong Centre have jointly published a report titled “Project Sela – An accessible and secure retail CBDC ecosystem.” The project demonstrates the technical feasibility of a retail central bank [...]

Warning statement on unregulated virtual asset trading platform

September 14, 2023

The Securities and Futures Commission (SFC) has raised concerns about the virtual asset trading platform (VATP) known as “JPEX” actively promoting its services to the Hong Kong public through social media influencers and over-the-counter virtual asset money changers. The SFC clarifies that JPEX and its entities are not licensed or [...]

Complaints Against Debt Collection Agents Employed by Authorized Institutions

The Hong Kong Monetary Authority (HKMA) has released the results of the industry survey conducted during the first half of 2023 regarding complaints against debt collection agents (DCAs) employed by authorized institutions (AIs). Out of the 32 AIs that utilized the services of DCAs and assigned a total of 414,755 [...]

Good Practices for Talent Development

The Hong Kong Monetary Authority (HKMA) has set expectations for talent development practices in Authorized Institutions (AIs) based on a survey with major retail banks. The HKMA emphasizes competence and ethical behavior in its Supervisory Policy Manual (SPM) module CG-6. They have reviewed talent development practices in retail banks and [...]

Joint announcement of the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission

The China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) have come to an agreement regarding the inclusion of block trading (manual trades) in the mutual stock market access arrangements between Mainland China and Hong Kong (Stock Connect). It aims to improve the existing Stock [...]

Warning: Virtual asset trading platforms engaging in improper practices

The Securities and Futures Commission (SFC) has issued a warning to unlicensed virtual asset trading platforms (VATPs) engaged in improper practices. These practices include falsely claiming to have submitted license applications to the SFC and offering non-compliant services and products. The SFC emphasizes that making false claims is an offense [...]

The Retail Green Bond of the Government of the Hong Kong Special Administrative Region of the People’s Republic of China (Stock code: 4273) – Standard Application Form Template and Deal-Specific Briefing for Securities Brokers by Hong Kong Monetary Authority

September 7, 2023

The Government has introduced a new series of retail green bonds under the Government Green Bond Programme. To simplify and standardize the application process, a standard application form template has been provided for CCASS Clearing/Custodian Participants. This form includes the necessary information that participants should collect from investors for internal [...]

Circular to Licensed Corporations in relation to list of prescribed persons who have reached the clearing threshold under the clearing and record keeping rules for the OTC derivatives regime

September 4, 2023

The Securities and Futures Commission (SFC) has published an updated list of prescribed persons who have reached the clearing threshold under the Securities and Futures (OTC Derivative Transactions – Clearing and Record Keeping Obligations and Designation of Central Counterparties) Rules. The list is compiled based on available information from the [...]

The HKMA issued a letter on 30 August 2023 to consult the banking industry on the proposed Code of Practice chapter on Continuity of Access to Financial Market Infrastructure Services under the Financial Institutions (Resolution) Ordinance (Cap. 628).

August 31, 2023

The Monetary Authority (MA) has released a consultation paper that offers guidance to authorized institutions (AIs) on maintaining access to critical financial market infrastructure (FMI) services during resolution scenarios. The paper highlights the significance of continuity of access (CoA) in executing the preferred resolution strategy and sustaining the essential financial [...]

Alternative Arrangement for Meeting the Audio Recording Requirement of Protection Linked Plan

August 31, 2023

The Hong Kong Monetary Authority (HKMA) has announced on 8 July 2022 that authorized institutions (AIs) in Hong Kong are required to audio record the selling process of protection linked plans (PLPs) with retail banking customers. A new circular is issued to provide flexibility for AIs to adopt an alternative [...]

Planning for net-zero transition

August 30, 2023

The Hong Kong Monetary Authority (HKMA) has provided a set of high-level principles to guide banks in their transition to a net-zero economy, with the aim of ensuring safety and stability throughout the process. The HKMA has been actively integrating climate risk into its banking supervision activities and plans to [...]

New Roadmap to Promote Fintech Adoption in Financial Services Sector

August 28, 2023

The Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC), and the Insurance Authority (IA) have jointly published a new Fintech Promotion Roadmap. This roadmap outlines a series of initiatives that the three regulators will undertake over the next 12 months to drive the adoption of financial technology [...]

Circular to Intermediaries Reminder on the Over-the-counter Securities Transactions Reporting Regime (OTCR)

August 28, 2023

Relevant Regulated Intermediaries are reminded that the Over-the-counter Securities Transactions Reporting Regime (OTCR) will come into effect on 25 September, 2023. It is notified that the necessary testing and preparation for reporting under the OTCR should be finished before the effective date. Intermediaries could refer to the Circular issued on [...]

SFC concludes consultation on risk management guidelines for futures dealing activities

August 28, 2023

The Securities and Futures Commission (SFC) has published its consultation conclusions regarding risk management guidelines for licensed futures brokers. These guidelines provide a comprehensive framework for futures brokers to effectively manage various risks, including market risk, commodity futures trading, client credit risk, concessionary margining, and risk associated with executing or [...]

Amendments to the CCASS Operational Procedures (the “Procedures”) of Hong Kong Securities Clearing Company Limited (“HKSCC”)

August 25, 2023

Participants of CCASS are advised to take note of the approved modifications to the Procedures, as authorized by the Securities and Futures Commission. These changes pertain to the implementation of two-factor authentication for accessing CCASS Terminals by Clearing Participants and Designated Banks. The amendments provided in the Appendix will be [...]

SFC issues quarterly report

August 24, 2023

The Securities and Futures Commission (SFC) has released its Quarterly Report summarizing key developments from April to June 2023. The report highlights new initiatives aimed at establishing Hong Kong as an offshore renminbi and risk management center. One of these initiatives is Swap Connect, which allows Mainland bond investors to [...]

Renewal of Orion Central Gateway – Securities Market (OCG-C) RSA Public Key on Production Environment

August 23, 2023

Exchange Participants (EPs) should note that a new OCG-C RSA public key has been implemented in the testing environment since 8th August 2023. HKEX will renew the key on the production environment, allowing a transitional period for both old and new keys to be used for encryption. EPs must update [...]

HKMA and IFFO hold the first Blended Finance Roundtable

August 23, 2023

On August 22, the first Blended Finance Roundtable was organized by the Hong Kong Monetary Authority (HKMA) and HKMA Infrastructure Financing Facilitation Office (IFFO). The purpose was to facilitate discussions among influential stakeholders, including leaders from banks, international organizations, family offices, and philanthropies, on harnessing the potential of blended finance [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism United Nations Sanctions (Democratic People’s Republic of Korea) Regulation

August 18, 2023

A revised list of “individuals and entities” under the United Nations Sanctions (Democratic People’s Republic of Korea) Regulation has been published on the Commerce and Economic Development Bureau’s website. Licensed corporations, SFC-licensed virtual asset service providers, and associated entities are reminded to refer to the AML/CFT Guideline for compliance measures [...]

Fast Interface for New Issuance (FINI): Connectivity Test to prepare for Market Rehearsal Sessions (MRS)

August 16, 2023

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the dates for Market Rehearsal Sessions (MRS) for the Financial Infrastructure for New Issues (FINI) platform. The MRS will take place on August 26, 2023, and September 2, 2023. In preparation for the MRS, a brief connectivity test will be conducted [...]

Pilot Programme of Interbank Account Data Sharing Initiative

August 16, 2023

The Hong Kong Monetary Authority (HKMA) is introducing the pilot programme of the Interbank Account Data Sharing (IADS) initiative and inviting banking institutions to participate. This initiative enables secure sharing of customer bank account data between banks with customer consent. A preliminary study conducted by the Hong Kong Association of [...]

Self-Match Prevention Service in Derivatives and Securities Market

August 15, 2023

Hong Kong Exchanges and Clearing Limited (HKEX) aims to enhance its self-match prevention (SMP) service in the derivatives market by Q2 2024, pending regulatory approval. The improvements include an additional SMP model for Exchange Participants (EPs) to avoid accidental self-matching of orders. Clients can also apply through EPs to prevent [...]

Regulators reach consensus on introducing block trading under Stock Connect

August 14, 2023

The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) have jointly announced their agreement on the implementation of block trading (manual trades) in the context of Stock Connect. This new trading mechanism will provide an alternative option for executing large-sized transactions, benefiting market participants. Under Stock [...]

Fast Interface for New Issuance (FINI): Participation in Market Rehearsals

August 11, 2023

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the dates for the Market Rehearsals Session (MRS) for FINI. The MRS will take place on August 26, 2023, and September 2, 2023. To participate, all FINI Users must complete their user account and teams setup on the HKEX Access Management [...]

SFC concludes consultation on amendments to enforcement-related provisions of the Securities and Futures Ordinance

August 9, 2023

The Securities and Futures Commission (SFC) has announced the conclusion of its consultation on proposed amendments to the Securities and Futures Ordinance (SFO) regarding enforcement-related provisions. The SFC has decided to move forward with expanding the scope of the SFO’s insider dealing provisions. This expansion will encompass insider trading in [...]

Amendments to the Options Trading Rules (the “Rules”) of The Stock Exchange of Hong Kong Limited (“SEHK”) and the Rules, Regulations and Procedures of Hong Kong Futures Exchange Limited (“HKFE Rules”)

August 8, 2023

Stock Exchange and Futures Exchange Trading Rights holders, and Exchange Participants are advised to take note of the approved amendments to SEHK’s and HKFE’s Rules, regarding the enhancements of the Block Trade Facility in SEHK and HKFE derivatives market. The changes will be implemented starting from Monday, 28th August 2023. [...]

Warning: Virtual asset trading platforms engaging in improper practices

August 8, 2023

The Securities and Futures Commission (SFC) has issued a warning to unlicensed virtual asset trading platforms (VATPs) regarding their improper practices. The SFC emphasizes the potential legal and regulatory consequences of these practices and advises investors to be cautious when trading virtual assets on unregulated VATPs. Specifically, the SFC addresses [...]

Cross-Agency Steering Group announces priorities to further strengthen Hong Kong’s sustainable finance ecosystem

August 8, 2023

The Green and Sustainable Finance Cross-Agency Steering Group has announced its key priorities to strengthen Hong Kong’s position as a leading sustainable finance hub. These priorities include establishing world-class regulation aligned with global standards, enhancing the vibrancy and competitiveness of Hong Kong’s finance ecosystem through capacity building, data enhancement, and [...]

Launch Date for the Enhancements of Block Trade Facility in the Derivatives Market

August 7, 2023

The Stock Exchange of Hong Kong Limited (SEHK) has announced the upcoming launch of the enhanced Block Trade Facility in the derivatives market on Monday, 28 August 2023. This announcement refers to the circular dated 29 June 2023 (Ref. No.: MO/DT/156/23). Exchange Participants (EPs) are reminded that two enhancements, namely [...]

The HKMA issued on 4 August 2023 for consultation with the banking industry the latest timetable for implementing the Basel III final reform package

August 7, 2023

The Hong Kong Monetary Authority (HKMA) has decided to update the implementation schedule for the Basel III final reform package. The implementation will begin no earlier than 1st July 2024 and will include revised standards on credit risk, operational risk, and output floor as a minimum regulatory requirement. The revised [...]

Hong Kong’s asset and wealth management business fared on par with global markets in 2022

August 7, 2023

The Securities and Futures Commission (SFC) published its annual Asset and Wealth Management Activities Survey report, revealing that the assets under management (AUM) in 2022 were $30,541 billion (US$3,912 billion). Hong Kong’s AUM rebounded by 15% from Q3 2022 to June 2023, reaching $1,335 billion (US$171 billion), with net fund [...]

Consultation on the Provisions on Improving the Regulation of Short-swing Trading by the China Securities Regulatory Commission (CSRC)

August 3, 2023

The China Securities Regulatory Commission (CSRC) has released the Consultation on the Provisions on Improving the Regulation of Short-swing Trading (in Chinese only), which will be open for feedback until August 20, 2023. Participants in the China Connect Exchange and Trade-through Exchange are advised to be aware of the proposed [...]

Enhanced Competency Framework on Green and Sustainable Finance

July 31, 2023

The Hong Kong Monetary Authority (HKMA), in collaboration with the Hong Kong Institute of Bankers (HKIB) and the banking industry, has launched the Core Level of the Enhanced Competency Framework on Green and Sustainable Finance (ECF-GSF). The framework sets common and transparent competency standards for GSF-related job roles in the [...]

Joint circular to intermediaries Streamlined approach for compliance with suitability obligations when dealing with sophisticated professional investors

July 31, 2023

The Hong Kong Monetary Authority and the Securities and Futures Commission received feedback from intermediaries regarding compliance with suitability obligations when dealing with sophisticated professional investors (SPIs). They updated their guidance documents to clarify the expected standards for suitability assessment and product disclosure processes for SPIs. Intermediaries can use a [...]

Circular to intermediaries HKEX’s annual rehearsal for trading system recovery

July 31, 2023

The Hong Kong Exchanges and Clearing Limited (HKEX) will conduct its annual rehearsal for emergency trading system recovery on August 19, 2023. The rehearsal is designed to test the processes under the Hong Kong investor identification regime (HKIDR), specifically the submission of the BCAN-CID Mapping File and Reporting Forms to [...]

Reminder on Payment Obligations of Clearing Participants

The Hong Kong Securities Clearing Company Limited (HKSCC) has issued a reminder to its participants about the importance of having proper risk management and funding arrangements in place to ensure the smooth operations of Hong Kong and China Connect markets. To comply with the settlement timelines stipulated by HKSCC, participants [...]

SAMA and HKMA Strengthen Financial Collaboration

The Saudi Central Bank (SAMA) and the Hong Kong Monetary Authority (HKMA) recently met in Riyadh to strengthen cooperation in their financial services sectors. They discussed initiatives in areas such as financial infrastructure, open market operations, market connectivity, and sustainable development. A Memorandum of Understanding (MoU) was signed to facilitate [...]

Circular on licensing and registration of depositaries of SFC-authorised collective investment schemes and related transitional arrangements

Starting from 2 October 2024, depositaries for SFC-authorised collective investment schemes (CISs) in Hong Kong will be required to be licensed or registered for Type 13 regulated activity (RA 13) under the Securities and Futures Ordinance (SFO), unless exempted. Depositary services include the custody and safekeeping of relevant CIS property [...]

SFC welcomes licence and registration applications from depositaries of public funds

The Securities and Futures Commission (SFC) has started accepting applications for Type 13 regulated activity (RA13) under a new regime that will place depositaries of SFC-authorized collective investment schemes under its direct supervision. To operate in Hong Kong, depositaries must submit their RA13 applications through the SFC’s online submission platform [...]

Complaints Watch

July 27, 2023

The HKMA has published the 22nd edition of its Complaints Watch, a bi-annual newsletter that informs the banking industry about the complaints received by HKMA. The newsletter covers the latest complaint trends, emerging issues, and good practices that AIs can adopt to uphold proper standards of conduct and prudent business [...]

HKEX Signs Cooperation Agreement with Indonesia Stock Exchange

July 27, 2023

Hong Kong Exchanges and Clearing Limited (HKEX) has signed a Memorandum of Understanding (MOU) with Indonesia Stock Exchange (IDX) to explore opportunities for mutual development in cross-border listings, joint product development, and ESG initiatives. The partnership aims to strengthen the global position of the Indonesian capital market and deepen collaboration [...]

Fast Interface for New Issuance (FINI): Market Rehearsals Update

July 26, 2023

HKEX has announced that a Market Rehearsal Session (MRS) for FINI will take place on August 26 and September 2, 2023. The MRS provides a chance for all FINI users to test their account setup in the FINI Production environment and execute a hypothetical IPO in a compressed, one-day simulation [...]

SFC welcomes IOSCO endorsement of new sustainability disclosure standards

July 26, 2023

The International Sustainability Standards Board (ISSB) has published the IFRS Sustainability Disclosure Standards, which provide a global framework for sustainability disclosures relevant to investors. The Securities and Futures Commission (SFC) has welcomed the endorsement of these standards by the International Organization of Securities Commissions (IOSCO), which encourages its member securities [...]

Update on the Standard Form of Transfer – Consequential Rule Amendments Following Mainland China Regulation Updates and Other Proposed Rule Amendments Relating to PRC Issuers

July 25, 2023

The Hong Kong Stock Exchange has made changes to its rules for PRC issuers to align them with those for other issuers and reflect recent regulatory updates in Mainland China. These changes will come into effect on August 1, 2023. As a result, the Standard Form of Transfer has also [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Early Alert on United Nations Sanctions

July 25, 2023

On July 21, 2023, the United Nations Security Council’s sanctions committee responsible for administering sanctions against ISIL and Al-Qaida made changes to the details of two individuals on its sanctions list. As a result, licensed corporations, SFC-licensed virtual asset service providers, and associated entities are advised to update their screening [...]

Regulators conclude consultation on revising OTC derivative Clearing Rules

July 24, 2023

The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) have jointly issued their consultation conclusions on proposed amendments to the Clearing Rules for over-the-counter (OTC) derivative transactions. The amendments aim to address the transition from interbank offered rates (IBORs) to alternative reference rates (ARRs) in interest rate [...]

Exchange Publishes Conclusions on Rule Amendments Following Mainland China Regulation Updates and Other Proposed Rule Amendments Relating to PRC Issuers

July 24, 2023

The Exchange will introduce rule amendments on August 1, 2023, to align the requirements for PRC issuers with those applicable to other issuers. The changes will remove certain rule requirements for PRC issuers, such as class meeting and related requirements for share issuance and repurchase, requirements for disputes involving H [...]

SFC publishes review of SEHK’s performance in regulating listing matters

July 24, 2023

The Securities and Futures Commission (SFC) conducted a review of The Stock Exchange of Hong Kong Limited’s (Exchange) regulation of listing matters during 2021, focusing on business valuations in major acquisitions and disposals, administration of the IPO Placing Guidelines and reviewing IPO placee lists, and processes and procedures related to [...]

Risk Management Arrangements in respect of Individual Client Accounts

July 20, 2023

The circular refers to HKCC Rule 510(f), which allows HKCC to transfer open contracts of a defaulting participant to another participant, and HKCC Procedure 1.2.3, which allows an HKCC participant to open individual client accounts in DCASS. It states that in the event of an HKCC participant’s default, positions in [...]

Reminder on Payment Obligations of Clearing Participants

July 20, 2023

HKFE Clearing Corporation Limited (HKCC) and SEHK Options Clearing House Limited (SEOCH) has reminded Clearing Participants (CPs) about the importance of proper risk management and funding arrangements to manage their exposures and fulfill their payment obligations on time. If participants fail to adhere to settlement timelines, it can lead to [...]

Amendments to the Clearing Rules and Clearing Procedures of OTC Clearing Hong Kong Limited (“OTC Clear”)

July 20, 2023

OTC Clear is informing its members that it has received approval from the Securities and Futures Commission to amend its Clearing Rules and Procedures. These amendments will allow entities incorporated in England and Wales, regulated by the Bank of England and the Financial Conduct Authority, and with an affiliate regulated [...]

Post Release Test – The Amendment of Rules In Relation to Northbound Trading of Stock Connect by China Securities Regulatory Commission (CSRC), Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE)

July 18, 2023

The China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) have been reminded that the transitional period for the restriction of Mainland investors from Northbound Trading under Stock Connect will end on 24 July 2023. As a result, they must remove all CHN BCANs from the submission of BCAN-CID [...]

New synopsis: Julia Leung’s keynote discussion at HKICPA’s CPA Congress

July 18, 2023

At the CPA Congress organized by the Hong Kong Institute of Certified Public Accountants, Ms Julia Leung, CEO of the Securities and Futures Commission, spoke about the importance of the new IFRS2 Sustainability Disclosure Standards by the International Sustainability Standards Board (ISSB) for Hong Kong as a leader in sustainable [...]

Public consultation on proposed enhancements to the Deposit Protection Scheme launched

July 14, 2023

The Deposit Protection Scheme (DPS) in Hong Kong recently underwent a comprehensive review by the Deposit Protection Board. A consultation paper has been issued by the Board to propose improvements to the scheme based on the findings of the review. While the review determined that the DPS is mostly in [...]

SFC and AFRC join forces to combat misconduct by listed issuers

July 14, 2023

The Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) have issued a joint statement aimed at enhancing their collaboration in the regulation of Hong Kong’s securities and futures markets. The statement highlights the growing number of cases where listed issuers channel company funds to third [...]

Fast Interface for New Issuance (FINI): Commencement of Market Practice Session

July 13, 2023

The Market Practice Session (MPS) has commenced on July 10, 2023, and will test six hypothetical new listings using the new T+2 settlement timetable in the FINI External User Testing environment. The MPS provides an opportunity for FINI Users to practice IPO execution and settlement processes. No separate registration is [...]

Report on “The Digitalisation of Financial Services in Hong Kong: Recent Experience, Regulatory Developments and Considerations for Sustainable Innovation and Growth”

July 13, 2023

The Hong Kong Institute for Monetary and Financial Research (HKIMR) has published a report titled “The Digitalisation of Financial Services in Hong Kong: Recent Experience, Regulatory Developments and Considerations for Sustainable Innovation and Growth”, which examines the market and policy factors that have driven the digitalisation of financial services in [...]

New speech by Tim Lui: Speech at Law Society of Hong Kong’s Forum

July 13, 2023

Mr Tim Lui delivered a speech on how the organization is guiding the development of financial markets to maintain Hong Kong’s position as a leading capital raising center and investment hub. The SFC’s main objective is to establish high-quality markets through world-class regulation and boost investor confidence in the markets. [...]

Additional Practice Session – The Amendment of Rules in Relation to Northbound Trading of Stock Connect by China Securities Regulatory Commission (CSRC), Shanghai Stock Exchange (SSE) And Shenzhen Stock Exchange (SZSE)

July 12, 2023

The Exchange Circular has announced an optional additional Practice Session (PS) on 15 July 2023 for China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) to test BCAN tagging of Northbound orders in the testing environment. CCEPs who want to participate need to complete the Registration form and return [...]

Countercyclical Macroprudential Measures for Property Mortgage Loans

July 11, 2023

The Hong Kong Monetary Authority (HKMA) has issued guidelines to banks on adjusting countercyclical macroprudential measures for property mortgage loans. The HKMA has been monitoring property market conditions since implementing these measures in 2009, and due to the COVID-19 pandemic and rising interest rates, has adjusted the maximum loan-to-value (LTV) [...]

New speech by Julia Leung: Speech at HKSI Institute Regulatory Luncheon

July 11, 2023

Ms Julia Leung at a Hong Kong Securities and Investment Institute event discussed the need to eliminate harmful practices, such as ramp and dump scams, in the stock market to achieve sustainable development. These scams involve fraudsters with various roles who target low trading turnover and small-cap stocks, causing substantial [...]

REMINDER – 2023 Annual Attestation and Inspection Programme – Self- attestation of Compliance Questionnaire

July 7, 2023

This is a reminder about the 2023 Self-attestation of Compliance Questionnaire (the “Questionnaire”) that was mentioned in a circular dated June 9, 2023 (Ref. No.: MSM/006/2023). All Participants are reminded to submit the Questionnaire by July 21, 2023, via the Electronic Communication Platform (ECP) at https://ecp2.hkex.com.hk/. ↗ The Questionnaire and [...]

Name Change of Financial Reporting Council Transaction Levy

July 7, 2023

The Financial Reporting Council (FRC) will change its name to the Accounting and Financial Reporting Council (AFRC) from October 1, 2022, as announced in a press release. As a result, relevant rules and procedures of the Exchange will be updated, including the renaming of the “FRC Transaction Levy” to “AFRC [...]

HKICPA Best Corporate Governance & ESG Awards 2023 now open for applications

July 6, 2023

The Hong Kong Institute of Certified Public Accountants (HKICPA) Best Corporate Governance and ESG Awards 2023 are open for entries until August 3, 2023. The awards recognize listed companies and public sector organizations (PSOs) that demonstrate excellence in integrating good corporate governance (CG) and ESG into their values, strategy, and [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Early Alert on United Nations Sanctions

July 6, 2023

On June 30th, 2023, the United Nations Security Council’s sanctions committee modified the sanctions list for North Korea. As a result, licensed corporations, virtual asset service providers, and associated entities are required to update their screening databases for customer and payment sanctions screening accordingly. These entities should also refer to [...]

Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism (1) FATF Statement on High-Risk Jurisdictions subject to a Call for Action (2) FATF Statement on Jurisdictions under Increased Monitoring (3) Outcomes from the FATF Plenary, 21-23 June 2023

July 6, 2023

The Securities and Futures Commission (SFC) has issued a circular to various entities, including Licensed Corporations and SFC-licensed Virtual Asset Service Providers, about recent statements and outcomes from the Financial Action Task Force (FATF). The FATF has identified certain high-risk jurisdictions, such as Iran and the Democratic People’s Republic of [...]

Derivatives Facilitation Development Program

July 5, 2023

The Hong Kong Futures Exchange Limited has launched the Derivatives Facilitation Development Program to provide assistance for specific MSCI futures. The program will be available from 1 August 2023 to 28 June 2024. If interested, applicants can request application details by contacting DFD@hkex.com.hk. The deadline for applications is 18 July [...]

Exchange Publishes Conclusions on Proposals to Expand Paperless Listing Regime

The Hong Kong Stock Exchange has confirmed that it will implement all the proposals to expand its paperless listing regime, which received majority support from respondents in a recent consultation. The changes include mandatory electronic submission of documents and simplified appendices to the Listing Rules, among other amendments. The Exchange [...]

Compliance Bulletin (Issue No. 8) – (1) Restricting Mainland Investors from Northbound Trading under Stock Connect, (2) Hong Kong Investor Identification Regime (“HKIDR”), (3) Stock Connect Northbound BCAN (“NB BCAN”) requirements, and (4) 2023 Self-attestation of Compliance Questionnaire

The Compliance Bulletin released by the Exchange serves as a reminder to participants of their obligations to comply with applicable rules and regulations in four key areas: (1) Restricting Mainland Investors from Northbound Trading under Stock Connect, (2) HKIDR, (3) Stock Connect NB BCAN requirements, and (4) the 2023 Self-attestation [...]

Order Consideration Limit Setting and Apply Notional Value Checks by Exchange Participants

Exchange Participants (EPs) are advised to review and set their own Order Consideration Limit (Limit) based on their business needs and financial strength to reduce the risk and impact of input errors. EPs should have enough resources to fulfill their obligations and handle any consequences if input errors occur. Notional [...]

Revised Return of International Banking Statistics

The Hong Kong Monetary Authority (HKMA) has updated the Return of International Banking Statistics (IBS Return) and the completion instructions after consulting with industry associations. The changes reflect the Bank for International Settlements’ (BIS) updated guidelines on reporting international banking statistics and aim to improve consistency and provide more detailed [...]

Enhancements to the Block Trade Facility in the Derivatives Market

June 30, 2023

The Stock Exchange of Hong Kong Limited plans to improve its derivatives market Block Trade Facility (BTF) with two enhancements in Q3 2023. The first enhancement enables the fulfilment of Minimum Volume Threshold (MVT) requirements for Block Trades through the summation of two legs to achieve an average price with [...]

Anti-Scam Consumer Protection Charter

June 30, 2023

The Hong Kong Monetary Authority (HKMA) and the Hong Kong Association of Banks (HKAB) have collaborated to launch the Anti-Scam Consumer Protection Charter, which aims to raise public awareness about safeguarding credit card and personal information. The Charter has received support from major merchant institutions, the Hong Kong Police Force [...]

Annual update to the list of Financial Services Providers under the OTC derivatives regulatory regime

The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) have jointly released their decision on updating the Financial Services Providers List (FSP List) for over-the-counter (OTC) derivatives regulation. After considering market feedback, the proposed changes outlined in the joint consultation paper have been concluded, and both the [...]

Fast Interface for New Issuance (FINI): FINI Market Rehearsals and Go-live Arrangements

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the upcoming market rehearsals of FINI, which is a new platform for T+2 IPO settlement process in Hong Kong. The rehearsals will be conducted in two parts: the Market Practice Session (MPS) and the Market Rehearsal Session (MRS). It is highly [...]

SFC and Exchange sign second addendum to MoU governing listing matters

The Securities and Futures Commission (SFC) and The Stock Exchange of Hong Kong Limited (Exchange) have signed a second addendum to their Memorandum of Understanding (MoU) regarding Listing Matters. This is in response to HKEX’s plan to introduce the Fast Interface for New Issuance (FINI) in the latter half of [...]

SFC and Exchange sign second addendum to MoU governing listing matters

Hong Kong Exchanges and Clearing Limited (HKEX) has announced that it will launch FINI, its IPO settlement platform, in October 2023. The platform will reduce the time between IPO pricing and share trading from five business days (T+5) to two business days (T+2), thus modernizing and digitalizing Hong Kong’s IPO [...]

Consultation begins on Review of Three-Tier Banking System

The Exchange has announced that the Northbound (NB) Broker-to-Client Assigned Number (BCAN) file submission and download functions on ECP will be launched on July 17th, 2023. To ensure a smooth rollout, all China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) are strongly advised to participate in a Post [...]

Consultation begins on Review of Three-Tier Banking System

The Hong Kong Monetary Authority (HKMA) has proposed simplifying the current three-tier banking system in Hong Kong, which has been established for 40 years, by converting it to a two-tier system. The HKMA has released a consultation paper to obtain feedback from the public on the proposed changes. The plan [...]

Cross-Agency Steering Group welcomes publication of IFRS Sustainability Disclosure Standards

The Green and Sustainable Finance Cross-Agency Steering Group in Hong Kong has expressed its support for the new International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards recently introduced by the International Sustainability Standards Board (ISSB). These standards are intended to become the global standard for corporate sustainability reporting, and Hong [...]

New speech by Julia Leung: Keynote speech at ASIFMA China Capital Markets Conference

Ms Julia Leung discussed a strategy to reconnect with China, acknowledging that despite geopolitical tensions, China’s capital markets had become too big to ignore and too integrated to be decoupled. The strategy involves using Hong Kong as a fundraising center, deepening Connect schemes with Mainland markets, and enhancing Hong Kong’s [...]

New speech by Julia Leung: Keynote Speech at Executive Dinner organised by the Hong Kong Economic and Trade Office in Bangkok, Office for Attracting Strategic Enterprises and InvestHK

June 26, 2023

Ms Julia Leung was pleased to be at the event and thanked the organizers. They discussed the Securities and Futures Commission’s approach to virtual asset regulation and their new virtual asset licensing regime. The SFC believed in a technology-neutral regulatory approach and aimed to maintain investor protection and fair markets [...]

HKEX Celebrates Opening of New York Office, Supporting Clients Across North America

June 23, 2023

Hong Kong Exchanges and Clearing Limited (HKEX) has opened a new office in New York to provide on-the-ground support to its North American clients. The move is part of HKEX’s commitment to broadening international participation in its market and enhancing global market connectivity. The office will offer enhanced access to [...]

SFC publishes Annual Report 2022-23

June 23, 2023

The Securities and Futures Commission (SFC) has published its Annual Report 2022-23, highlighting its achievements in the past year and outlining its plans for nurturing high-quality market growth and upholding world-class regulation to advance Hong Kong’s position as a leading international financial centre. Key accomplishments include the introduction of Swap [...]

Major Enhancements on Protection of Payment Card Customers

June 21, 2023

The Hong Kong Monetary Authority (HKMA) has issued guidance to payment card issuers (banks) on how to improve protection for payment card customers. Due to the increase in electronic payments, payment cards have become an important aspect of daily life, but this has also led to an increase in card [...]

The HKMA supports the launch of bank-to-bank information sharing platform

June 21, 2023

Hong Kong Monetary Authority (HKMA), Hong Kong Association of Banks (HKAB), and Hong Kong Police Force (HKPF) have announced the launch of a new system called Financial Intelligence Evaluation Sharing Tool (FINEST), which is a bank-to-bank information sharing platform. The purpose of this platform is to help banks share information [...]

The HKMA issued a letter on 15 June 2023 to consult the banking industry on Basel III final reform package — miscellaneous amendments to Banking (Capital) Rules

June 20, 2023

The consultation relates to the banking industry on Basel III final reform package. The amendments include some miscellaneous items to the Banking (Capital) Rules, and the consultation would be closed on 14 July 2023. Resource: https://www.hkma.gov.hk/media/eng/regulatory-resources/consultations/Annex_proposed_amendments_to_BCR_for_CCyB_and_miscellaneous_items_(20230615).pdf [...]

HKEX Launches HKD-RMB Dual Counter Model and Dual Counter Market Making Programme

June 20, 2023

Hong Kong Exchanges and Clearing Limited (HKEX) announced the launch of its HKD-RMB Dual Counter Model and Dual Counter Market Making Programme. This new initiative allows 24 Hong Kong-listed companies, representing 40% of the daily turnover of the cash equities market, to trade as Dual Counter securities, offering both HKD [...]

Fast Interface for New Issuance (FINI): Market Familiarisation

June 19, 2023

On June 16, 2023, HKEX announced the successful completion of the FINI EUT period, which saw participation from several hundred firms representing various FINI User groups. These firms accounted for around 90% of Hong Kong’s IPO transaction activity over the past few years and have confirmed their readiness to use [...]

Launch of The HKD-RMB Dual Counter Model in Hong Kong Securities Market – Arrangement in Derivatives Market

June 19, 2023

This circular relates to the launch of the HKD-RMB Dual Counter Model on 19 June 2023 for selected Dual Counter Securities in the Securities Market. The Exchange Participants are reminded that the underlying stocks for current stock futures and options in the Derivatives Market will remain in HKD counters. Therefore, [...]

Appointments and re-appointments to SFC Advisory Committee

June 16, 2023

The Financial Secretary has appointed and re-appointed members to the SFC Advisory Committee for a two-year term starting from 1 June 2023. The Chairman of the SFC, Tim Lui, welcomes the new and re-appointed members and believes that their advice and insight will be valuable for the SFC’s policy and [...]

Rehearsal on the Polling Mechanism for Cash and Derivatives Market Contingencies on 5 July 2023

June 14, 2023

In case of an unexpected event, it’s crucial for the Exchange to receive quick and direct feedback from Exchange Participants (EPs) to evaluate the situation and take appropriate actions. One way for EPs to communicate with the Exchange is through electronic polling. To prepare for contingencies in the cash and [...]

CSRC and SFC hold high-level meeting in Hong Kong

June 13, 2023

The 13th high-level meeting on regulatory cooperation between the China Securities Regulatory Commission (CSRC) and the Securities and Futures Commission (SFC) was held in Hong Kong. The meeting focused on discussing the current state of the capital market, reviewing recent achievements in cross-boundary regulatory cooperation, and exploring various market development [...]

2023 Annual Attestation and Inspection Programme – Self-attestation of Compliance Questionnaire

June 13, 2023

With reference to a circular dated February 28, 2023, which discusses the Annual Attestation and Inspection Program for 2023. Participants must complete a compliance questionnaire covering China Connect Rules and Risk Management, and Prescribed Risk Controls and submit it via an Electronic Communication Platform by July 21, 2023. Failure to [...]

Granting of banking licence to China CITIC Bank Corporation Limited

June 9, 2023

On June 8, 2023, the Hong Kong Monetary Authority announced that it has granted a banking license to China CITIC Bank Corporation Limited, a corporation based in the People’s Republic of China, under the Banking Ordinance. As a result, the total number of licensed banks in Hong Kong has now [...]

The fourth Anti-Money Laundering Regtech Lab: supporting an agile, coordinated and strategic response to digital fraud and financial crime

June 8, 2023

The Hong Kong Monetary Authority, in partnership with Cyberport and Deloitte, organized the fourth Anti-Money Laundering Regtech Lab (AMLab 4) to improve the use of data and technology to combat digital fraud and money laundering. The event brought together retail banks, technology companies, and industry experts to develop a sector-wide [...]

Amendments to the Rules of the Exchange and the Operation Procedures for Stamp Duty Collection of The Stock Exchange of Hong Kong Limited (“SEHK”)

The circular refers back to our previous communication, the Circular of May 19th, 2023 (Ref No. LSD/033/2023). We would like to inform Stock Exchange Trading Rights holders and Exchange Participants that the changes to the Exchange’s Rules and Stamp Duty Operation Procedures related to the HKD-RMB dual counter initiative, as [...]

Amendments to the General Rules of CCASS (the “Rules”) and the CCASS Operational Procedures (the “Procedures”) of Hong Kong Securities Clearing Company Limited (“HKSCC”)

This circular refers to a previous circular sent on May 19, 2023 (Ref No. LSD/034/2023). CCASS Participants are reminded that the amendments to the Rules and Procedures of HKSCC, which are necessary for implementing the HKD-RMB dual counter initiative outlined in Appendices 1 and 2 of the Circular, will be [...]

The HKMA welcomes the launch of the HKD-RMB Dual Counter Model and the Dual Counter Market Making Programme

The Hong Kong Monetary Authority (HKMA) is pleased to announce the launch of the HKD-RMB Dual Counter Model and the Dual Counter Market Making Programme on 19 June. Working closely with the Securities and Futures Commission (SFC) and Hong Kong Exchanges and Clearing Limited (HKEX), the HKMA aims to promote [...]

SFC updates guidance to prepare for HKD-RMB Dual Counter Model

In anticipation of the upcoming launch of the HKD-RMB Dual Counter Model on June 19, 2023, in the Hong Kong securities market, the Securities and Futures Commission (SFC) has updated its guidance on reporting requirements for short selling and record keeping for stock lending. The revised guidance now includes inter-counter [...]

SFC concludes consultation on the position limit regime

June 6, 2023

The Hong Kong Securities and Futures Commission (SFC) has released its conclusions on the proposed changes to the position limit regime for the derivatives market, including imposing obligations on asset managers who manage funds or sub-funds of umbrella funds. The SFC will implement the proposed changes to provide more clarity [...]

New speech by Julia Leung: Keynote speech at HKIFA 16th Annual Conference

June 6, 2023

During the keynote speech at the 16th HKIFA Annual Conference, CEO Julia Leung discussed the challenges faced by the asset management industry in 2022 and the necessity to adjust strategies to make Hong Kong a global asset management hub and private wealth center. The investment landscape experienced a significant shift [...]

Update – Amendment of Rules in relation to Northbound Trading of Stock Connect by China Securities Regulatory Commission (CSRC), Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE)

June 5, 2023

The Exchange Circular (Ref. No.: CT/088/22) has stated that starting from July 24, 2023, Mainland investors will no longer be allowed to use CHN BCANs for Northbound Trading under Stock Connect. While Mainland investors cannot actively purchase China Connect Securities through Northbound Trading, they can sell them by tagging reserved [...]

List of Authorized Institution-related Trustees

June 2, 2023

The Hong Kong Monetary Authority (HKMA) has launched a list of authorized institution (AI)-related trustees on its website to help the public identify and access information on them. This comes after the HKMA issued a Supervisory Policy Manual (SPM) module and Code of Practice for Trust Business in May 2022, [...]

The HKMA issued a letter on 31 May 2023 to consult the banking industry on implementation of Basel III final reform package – credit risk and output floor

This consultation document assumes that the rules created by the Monetary Authority under section 97C of the Banking Ordinance will be entitled the Banking (Capital)(Amendment) Rules 2023 (BCAR). The BCAR is divided into five parts, with Part 1 outlining the commencement arrangements for the different parts, Part 2 detailing the [...]

Revision of two Specified Forms in relation to Application for Disclosure of Protected Information

As of June 1, 2023, the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 has implemented a licensing system for virtual asset service providers. This means that licensed VASPs are now considered financial institutions under the updated law. The Companies Registry has responded to this change by updating forms related [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism United Nations Sanctions (Somalia) Regulation 2019

An updated list of “individuals and entities” subject to section 29 of the United Nations Sanctions (Somalia) Regulation 2019 (Cap. 537CG) was recently published on the Commerce and Economic Development Bureau’s website on May 31, 2023. The list can be found in Attachment 2, while Attachment 1 contains a press [...]

Circular on transitional arrangements of the new licensing regime for virtual asset trading platforms

Starting June 1, 2023, centralized virtual asset trading platforms (VATPs) operating in Hong Kong must obtain a license from the Securities and Futures Commission (SFC) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. Pre-existing VATPs can continue to provide virtual asset (VA) services until May 31, 2024, without violating licensing [...]

Circular on implementation of new licensing regime for virtual asset trading platforms

Starting from 1 June 2023, centralised virtual asset trading platforms in Hong Kong must apply for a license under the Securities and Futures Ordinance and/or the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The Securities and Futures Commission has published guidelines, FAQs, and a licensing handbook to help with the licensing [...]

Prototype of a Green Classification Framework for Hong Kong

May 31, 2023

The Hong Kong Monetary Authority (HKMA) has released a discussion paper titled “Prototype of a Green Classification Framework for Hong Kong,” which outlines their current thinking on a local green taxonomy and seeks feedback from stakeholders on its development and implementation. The goal of this framework is to increase transparency [...]

Amendments to the Rules of the Exchange (the “Rules”)

May 30, 2023

The Securities and Futures Commission has given approval to amend the Rules by removing provisions related to the New Securities Trading Device (NSTD) arrangement, which is no longer in operation since December 31, 2022. Individuals who hold Stock Exchange Trading Rights and Exchange Participants should take note of these changes. [...]

Amendments to Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Stored Value Facility Licensees)

May 29, 2023

The Hong Kong Monetary Authority (HKMA) has announced the release of a revised Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Stored Value Facility Licensees). This follows an industry consultation and the guideline will become effective from 1 June 2023. SVF licensees must review the revised guideline and take [...]

Amendments to Guideline on Anti-Money Laundering and Counter- Financing of Terrorism (For Authorized Institutions)

May 29, 2023

The Hong Kong Monetary Authority (HKMA) has published a revised Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) for Authorized Institutions (AIs) in the Gazette. The revised AML/CFT Guideline will be effective from 1 June 2023 and AIs are advised to review and implement appropriate measures in line with [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism United Nations Sanctions (Yemen) Regulation 2019 (Amendment) Regulation 2023

May 29, 2023

The Yemen Amendment Regulation, which was made under the United Nations Sanctions Ordinance (Cap. 537), has been published in the Gazette on 25 May 2023 and is now in effect. It modifies the United Nations Sanctions (Yemen) Regulation 2019 to implement specific decisions on sanctions regarding Yemen, such as the [...]

Change of Authentication for CCASS Terminal – Official Launch of Two-Factor Authentication

May 25, 2023

The circular from April 3, 2023, provides information about the upcoming launch of Two-Factor Authentication (2FA) to replace the existing smartcard for terminal access to CCASS. The successful completion of briefings for the launch of 2FA preparation has been announced, and the official launch is tentatively scheduled for June 12, [...]

Circular to Licensed Corporations and Associated Entities Revised financial return form, analysis of client assets for associated entity and audit questionnaire

May 25, 2023

The Securities and Futures Commission (SFC) has released updated versions of three forms: the financial return form, analysis of client assets for associated entity form, and the audit questionnaire. The new financial return form must be used for submitting a return for any period ending on or after December 1, [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Amendments to Anti-Money Laundering and Counter-Financing of Terrorism Guidelines

May 25, 2023

The Securities and Futures Commission (SFC) has updated its anti-money laundering and counter-financing of terrorism (AML/CFT) guidelines for licensed corporations and associated entities to include provisions related to the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, which will come into effect on June 1, 2023. The revisions include updated [...]

Revised on Application for Disclosure of Protected Information

May 24, 2023

The Company Registry (CR) has released a gazette notice under section 23 Companies Ordinance (Chapter 622). The revised Ordinance will come into effect on from 1 June 2023. Form PS3 for Application for Disclosure of Protected Information is revised according to section 58(3) of the Ordinance. Resource: https://www.cr.gov.hk/en/publications/docs/GN2954_e.pdf [...]

SFC concludes consultation on regulation of virtual asset trading platforms

May 24, 2023

The Securities and Futures Commission (SFC) has announced the release of the Consultation Conclusions on the Proposed Regulatory Requirements for Virtual Asset Trading Platform Operators Licensed by the SFC. During the consultation period, the SFC received 152 written submissions. The proposed requirements were generally well-received, the proposal to allow licensed [...]

Upcoming Launch of the HKD-RMB Dual Counter Model Eligible for Market Making in Hong Kong Securities Market

The Hong Kong Stock Exchange has announced a tentative launch date of 19 June 2023 for its HKD-RMB Dual Counter Model, which will allow the trading of securities in both Hong Kong dollars and Chinese yuan. The launch is subject to market readiness, and the exchange is currently accepting applications [...]

Amendments to the General Rules of CCASS (the “Rules”) and the CCASS Operational Procedures (the “Procedures”) of Hong Kong Securities Clearing Company Limited (“HKSCC”)

To support the implementation of the HKD-RMB dual counter initiative, the Rules and Procedures of HKSCC have been amended and approved by the Securities and Futures Commission. This includes the addition of a new Intra-day Counter Transfer Instruction which will enable CCASS Participants to transfer multi-counter securities more efficiently within [...]

Amendments to the Rules of the Exchange and the Operation Procedures for Stamp Duty Collection of The Stock Exchange of Hong Kong Limited (“SEHK”)

The Securities and Futures Commission has approved changes to the Rules of the Exchange and Operation Procedures for Stamp Duty Collection of SEHK. These amendments will allow the HKD-RMB dual counter initiative, which includes trading securities in two different currencies and a new dual counter market making program. Stamp duty [...]

Amendments to the Clearing Procedures (the “Procedures”) of OTC Clearing Hong Kong Limited (“OTC Clear”)

OTC Clear has been authorized by the Securities and Futures Commission to make changes to its Procedures. These changes include discontinuing the clearing services for certain types of swaps referencing USD LIBOR and THBFIX, and introducing new ISDA compounding conventions for overnight floating rate options such as SOFR. The amendments [...]

HKEX to Launch HKD-RMB Dual Counter Model on 19 June 2023

On June 19, 2023, the Hong Kong Exchanges and Clearing Limited (HKEX) plans to launch a new model and program called the Hong Kong Dollar (HKD)-Renminbi (RMB) Dual Counter Model, which aims to support the trading and settlement of RMB-denominated securities in Hong Kong. Interested parties may now apply to [...]

SFC consults on revisions to takeovers and share buy-back rules

The Securities and Futures Commission (SFC) has launched a consultation on suggested changes to the Codes on Takeovers and Mergers and Share Buy-backs. The proposed amendments aim to clarify existing practices and make other clarifications to the Codes. The consultation paper also introduces measures to reduce the environmental impact of [...]

Additional Practice Session for Migration of Northbound (NB) Broker-To-Client Assigned Number (BCAN) File Submission and Download Functions to Electronic Communication Platform (ECP)

May 17, 2023

Most of the China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) have completed the mandatory Practice Session (PS1) for migrating their NB BCAN file submission and download functions to ECP. An additional Practice Session (PS2) will be held on 20 May 2023 for those who did not complete [...]

New speech by Julia Leung: Luncheon remarks at Hong Kong REITS Association

May 17, 2023

Ms Julia Leung, the Chief Executive Officer of the Securities and Futures Commission, thanks the audience for inviting them to deliver the keynote at an event celebrating the establishment of the Hong Kong REITS Association. They applaud the efforts of the association to promote the development of the REIT market [...]

Swap Connect commences yesterday

May 16, 2023

The Securities and Futures Commission (SFC) is pleased with the launch of Swap Connect, a mutual access program between Hong Kong and Mainland China. It started with Northbound Trading, allowing investors from Hong Kong and other places to participate in the Mainland interbank interest rate swap market. This is the [...]

Further Information in relation to Swap Connect

May 15, 2023

OTC Clearing Hong Kong Limited is pleased to announce the launch of the new clearing service for Swap Connect, a mutual access program between Hong Kong and Mainland China’s interbank interest rate swap markets. The program will initially cover CNY interest rate swaps with benchmark rate options of 7-day Repo [...]

Large exposures: consultation on amendments to MA(BS)28 Return

May 15, 2023

The HKMA has requested feedback on revised templates for the Return of Large Exposures (MA(BS)28) in response to proposed amendments to the Banking (Exposure Limits) Rules (BELR). The revisions aim to put into effect changes resulting from proposed BELR amendments, address International Monetary Fund recommendations in relation to the prudential [...]

Liquidity Risk Multiplier in Initial Margin calculation for CNY IRS

May 12, 2023

OTC Clear has completed the calibration of the Liquidity Risk Multiplier for China Yuan interest rate swap (CNY IRS) in accordance with Chapter 4 of their Clearing Procedures. The levels of the Liquidity Risk Multiplier have been determined based on the results of a poll conducted with Clearing Members in [...]

Enhancement to the Clearable Product Features for Swaps

OTC Clearing Hong Kong Limited (OTC Clear) has received approval from the Securities and Futures Commission (SFC) for enhancements to the clearable product features for deliverable interest rate swaps (IRS) and cross currency swaps (CCS). The enhancements include acceptance of trades referencing “USD-SOFR” for registration, an update to the number [...]

Regtech Adoption Practice Guide

The circular informs the industry about the latest edition of the Regtech Adoption Practice Guide, which is the ninth issue. The focus of this issue is on Regtech solutions that can assist banks in improving their privacy compliance activities and establishing customer trust in light of the increasing amount of [...]

AML Regtech: Network Analytics

The Hong Kong Monetary Authority (HKMA) has published a report titled “AML Regtech: Network Analytics,” which recommends that banks adopt network analytics to bolster their anti-money laundering (AML) systems against financial crimes. The report suggests that combining intelligence-led analytical tools with rules-based monitoring systems can help banks to enhance their [...]

Guideline on Compliance of Anti-Money Laundering and Counter-Terrorist Financing Requirements for Trust or Company Service Providers (June 2023) will come into effect on 1 June 2023

The Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 will become effective on June 1, 2023. It covers several small and technical issues under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615). As a result, the Guideline on Compliance of Anti-Money Laundering and Counter-Terrorist Financing Requirements for Trust or [...]

Amendments to the Clearing Rules and Clearing Procedures of OTC Clearing Hong Kong Limited (“OTC Clear”)

May 9, 2023

OTC Clear’s Clearing Members have been informed that amendments to the Clearing Rules and Clearing Procedures have been approved by the Securities and Futures Commission. These changes will enable mutual access between the Hong Kong and Mainland interest rate swap markets, known as “Swap Connect”. This initiative is being undertaken [...]

Regulatory Capital Treatments in relation to Swap Connect

May 9, 2023

This circular explains the regulatory capital and reporting treatments for assets posted by authorized institutions (AIs) for participating in Swap Connect, an arrangement that allows overseas and Mainland investors to participate in financial derivatives markets in Mainland and Hong Kong. Hong Kong Exchanges and Clearing Limited and Shanghai Clearing House [...]

Guideline on Compliance of Anti-Money Laundering and Counter-Terrorist Financing Requirements for Licensed Money Lenders (June 2023) will come into effect on 1 June 2023

May 8, 2023

Starting from June 1, 2023, the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 will become effective, which covers various technical issues under the existing Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615). As a result, the Guideline on Compliance of Anti-Money Laundering and Counter-Terrorist Financing Requirements for Licensed Money [...]

The People’s Bank of China, Securities and Futures Commission and Hong Kong Monetary Authority to commence mutual access between the Mainland and Hong Kong interest rate swap markets

May 8, 2023

Under the Northbound Trading of Swap Connect, which will be launched on 15 May 2023, the initial eligible products will be interest rate swap contracts quoted, transacted and settled in RMB. Mainland investors must sign an agreement with CFETS for providing price quotation and be a Clearing Member of SHCH [...]

Applicable Jurisdictional Countercyclical Capital Buffer (CCyB) Ratio for Hong Kong

May 5, 2023

The Monetary Authority has decided to keep the Hong Kong jurisdictional CCyB ratio at 1%, after reviewing various indicators and information, including the IRC’s indicative buffer guide. The IRC calculates the CCyB based on deviations in credit to GDP and residential property prices to rentals from their long-term trends. The [...]

Regulation and Supervision of Trust Business

May 3, 2023

The HKMA has issued a circular requiring AIs and their subsidiaries conducting trust business in Hong Kong to comply with the Supervisory Policy Manual module TB-1 and the Code of Practice for Trust Business by June 1, 2023. A list of trustees who observe the Code will be published annually. [...]

Mandatory Practice Session for Migration of Northbound (NB) Broker-To-Client Assigned Number (BCAN) File Submission and Download Functions to Electronic Communication Platform (ECP)

A mandatory practice session for the migration of Northbound Broker-to-Client Assigned Number (BCAN) file submission and download functions to Electronic Communication Platform (ECP) will be held on May 13th, 2023. All China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) must participate in the session to verify their readiness [...]

Amendments to the Clearing Rules of OTC Clearing Hong Kong Limited

OTC Clear’s Clearing Members are advised that the Securities and Futures Commission has authorized amendments to OTC Clear’s Clearing Rules. These changes are intended to establish general guidelines for converting floating rates based on interbank offered rates to a new floating rate and to implement a conversion plan for outstanding [...]

Currency Conversion Arrangement Involving Onshore RMB (CNY) under Northbound Swap Connect

This circular informs the recipient of the currency conversion activities that their bank may undertake under Swap Connect, which is an arrangement that enables overseas and Mainland investors to participate in the financial derivatives markets in the Mainland and Hong Kong. In the initial stage, Northbound Trading will commence first, [...]

HKMA Annual Report 2022 and Sustainability Report 2022

The Hong Kong Monetary Authority (HKMA) has released its Annual Report 2022, which includes the financial statements of the Exchange Fund. The report provides an overview of monetary and banking affairs and highlights the HKMA’s activities throughout 2022, as well as its priorities and plans for 2023. Additionally, the HKMA [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Early Alert on United Nations Sanctions

On April 26, 2023, two individuals were added to the sanctions list by the United Nations Security Council’s sanctions committee for ISIL and Al-Qaida. To ensure compliance with the changes made by the committee, licensed corporations and associated entities must update their screening databases for sanctions screening of customers and [...]

Circular to Licensed Corporations which are Participants of The Stock Exchange of Hong Kong Limited or Hong Kong Futures Exchange Limited – Licence Holders Insurance Scheme for Exchange Participants

This circular explains the insurance requirements for licensed corporations engaging in regulated activities, specifically dealing in securities or futures contracts. The Securities and Futures Ordinance mandates licensed corporations to take out and maintain insurance for specified risks. An Industry Working Group, with support from the SFC, has re-appointed Marsh (Hong [...]

Access to banking services for corporate customers

The Hong Kong Monetary Authority (HKMA) considers maintaining a safe and efficient banking system, as well as promoting access to basic banking services for legitimate businesses, as crucial priorities. As part of its anti-money laundering and counter-financing of terrorism efforts, the HKMA requires authorized institutions (AIs) to adopt a risk-based [...]

New synopsis: Julia Leung at Bloomberg Policy Series dialogue

The Hong Kong Monetary Authority (HKMA) and the Banking Sector SME Lending Coordination Mechanism have announced a further 90-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme, which will expire at the end of July 2023. The deferment applies only to existing trade loans under the [...]

Banking Sector Defers Repayment of Trade Facilities by Another 90 Days

The CEO of the Securities and Futures Commission (SFC), Ms. Julia Leung, discussed the SFC’s regulatory priorities in a recent one-on-one discussion with Bloomberg. Leung emphasized maintaining resilient and orderly markets, promoting investor protection, fostering responsible innovation, and enhancing Hong Kong’s competitiveness as an international financial center (IFC) and gateway [...]

SFC announces carbon neutrality commitment

The Securities and Futures Commission (SFC) has announced its goal to become a carbon-neutral organization before 2050 and reduce its total carbon emissions by 50% before 2030. To achieve this, the SFC has conducted a carbon footprint assessment and identified key sources of emissions, such as electricity consumption and investments, [...]

The Companies (Amendment) Ordinance 2023 will come into operation tomorrow (28 April 2023)

Starting tomorrow (April 28), the Companies (Amendment) Ordinance 2023 will be in effect, allowing companies to hold general meetings in virtual or hybrid formats. This amendment was passed by the Legislative Council on January 18, and will provide companies with greater flexibility in conducting their corporate affairs according to their [...]

Binding payment cards for contactless mobile payments

April 26, 2023

The Hong Kong Monetary Authority (HKMA) has seen an increase in fraudulent cases involving payment cards being linked to new mobile payment services. Fraudsters have been using phishing methods to obtain payment card information and one-time passwords from cardholders, resulting in unauthorized transactions. To address this issue, the HKMA has [...]

Principles for Handling of Unauthorised Payment Card Transactions

April 26, 2023

The Hong Kong Monetary Authority has noticed a rise in unauthorized payment card transactions involving fraud and scams. They remind banks to investigate each case individually and treat cardholders fairly. Banks should consider all relevant circumstances before holding the cardholder liable for losses. The HKMA emphasizes that banks must have [...]

Dedicated 100% Loan Guarantee Schemes for Travel and Cross-boundary Passenger Transport Trades

April 26, 2023

The Hong Kong government is launching a 100% loan guarantee scheme to support the recovery of the travel industry between Mainland and Hong Kong. The scheme will provide fully guaranteed loans to eligible passenger transport operators and licensed travel agents, administered by HKMC Insurance Limited. Participating institutions will conduct customer [...]

Official Launch of Trading Calendar Enhancement for Stock Connect – Reminder

The Hong Kong Securities Clearing Company Limited will launch a trading calendar enhancement on April 24, 2023, which allows trading under Stock Connect on all trading days when both the Hong Kong and Mainland China markets are open. The first additional Northbound trading day will be on May 25, 2023. [...]

Climate risk stress test to Authorized Institutions

The HKMA has released guidelines for the second round of the climate risk stress test (CRST) to authorized institutions (AIs). The CRST has been enhanced to provide a more comprehensive assessment of AIs’ exposure to climate risks and improve their capabilities in managing them. The second round includes a new [...]

Hong Kong Monetary Authority and Hong Kong Police Force co-host sharing session with banking industry on anti-deception efforts

The Hong Kong Monetary Authority (HKMA) and the Hong Kong Police Force (HKPF) held a high-level session on anti-fraud efforts, attended by senior representatives from the HKMA, HKPF, and retail banks. The purpose was to explore new and innovative ways to prevent scams and intercept illicit proceeds. The HKMA has [...]

Consultation on annual update to Financial Services Providers list under OTC derivatives regulatory regime

The HKMA and SFC have released a joint consultation on updates to the list of Financial Services Providers under the OTC derivatives clearing regime. The proposed changes involve adding, removing, and updating the name of one entity. Interested parties can submit comments until May 19, 2023, and the consultation paper [...]

Further information on the dual counter model eligible for market making in Hong Kong securities market

April 19, 2023

Hong Kong Securities Clearing Company (HKSCC) has announced the launch of the HKD-RMB Dual Counter Model in the first half of 2023 to make cross counter transfers of multi-counter securities more efficient and flexible. The Multi-counter Transfer Instruction (MCTI) process will undergo some changes, including an extension of the input [...]

Suspension of CCASS Services on 13 May, 20 May, 27 May(Saturday)

CCASS online services will be suspended on 13 May, 20 May, 27 May for facilitating internal system testing and upgrading activities. The Production Reports will be available on the upcoming Monday for the above Saturday. resource:https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/HKSCC/2023/ce_HKSCC_SET_015_2023.pdf [...]

SFC welcomes Stock Exchange consultation on climate-related reporting requirements for listed companies

The SFC in Hong Kong has expressed its support for SEHK’s public consultation on climate-related reporting requirements for listed companies. The aim is to align Hong Kong with the global baseline for climate-related reporting standards set to be published by the ISSB. The SFC CEO, Ms Julia Leung, believes that [...]

Exchange Publishes Consultation Paper on Enhancement of Climate Disclosure under its ESG Framework

The Stock Exchange of Hong Kong has released a consultation paper seeking feedback on proposals to improve climate-related disclosures under the ESG framework. The proposed changes include mandating all issuers to disclose climate-related information in their ESG reports and introducing new disclosures aligned with the ISSB Climate Standard. The proposal [...]

New speech by Keith Choy: Keynote Speech at Hong Kong Web3 Festival 2023

Mr Keith Choy has given a speech at the at the Hong Kong Web3 Festival 2023. In the speech, Mr Choy talks about the rise of blockchain technology and the importance of regulation in the industry. He emphasizes the need for collaboration between regulators and the industry to promote innovation [...]

Hong Kong’s Latest Foreign Currency Reserve Assets Figures Released

April 12, 2023

As of the end of March 2023, the Hong Kong Monetary Authority (HKMA) has disclosed that Hong Kong’s official foreign currency reserve assets totaled US$430.7 billion, which is an increase from US$429.1 billion recorded in February 2023. The foreign currency reserve assets, which include unsettled foreign exchange contracts, amounted to [...]

Renminbi (RMB) Haircut

April 11, 2023

HKSCC has adjusted the Renminbi haircut rates to 3.0% with settlement currency prescribed in HKD and USD for the settlement of Marks, Margin, and Collateral requirements. This change will be effective from the close of business on April 12, 2023, and Clearing Participants should make necessary funding arrangements for the [...]

Change of Authentication for CCASS Terminal – (i) Reminder of Email Registration for CCASS Users and Delegated Administrators; (ii) Briefings for the Launch of Two-Factor Authentication Preparation

April 4, 2023

CCASS Participants (CPs) and Designated Banks (DBs) must register the designated email addresses of their CCASS users and DAs before 28 April 2023 to enable Two-Factor Authentication (2FA) to access CCASS. Failure to register an email address for a CCASS user or DA by the above-mentioned date will result in [...]

Revision of two Specified Forms in relation to Application for Disclosure of Protected Information

April 3, 2023

Starting April 1, 2023, the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, which establishes a registration regime for dealers in precious metals and stones, has taken effect. The amendment adds “A Category B Precious Metals and Stones registrant” to the definition of Designated Non-Financial Businesses and Professions (DNFBP). As [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism – United Nations Sanctions (Democratic Republic of the Congo) Regulation 2019 (Amendment) Regulation 2023

April 3, 2023

The United Nations Sanctions (Democratic Republic of the Congo) Regulation 2019 (Amendment) Regulation 2023 has been published in the Gazette, effective immediately. The amendment removes the notification requirement for relevant exemptions of arms embargo and reflects the latest exemption arrangements for asset freeze. Licensed corporations and associated entities must comply [...]

Appointments to SFC committees

April 3, 2023

The Securities and Futures Commission (SFC) has announced new appointments and reappointments to several committees starting April 1, 2023, including the Academic and Accreditation Advisory Committee, Committee on Real Estate Investment Trusts, Disciplinary Chair Committee, Public Shareholders Group, SFC (HKEC Listing) Committee, Share Registrars’ Disciplinary Committee, Takeovers and Mergers Panel, [...]

HKMA Quarterly Bulletin (March 2023 Issue)

March 31, 2023

The March 2023 issue of the HKMA’s Quarterly Bulletin has been published, featuring an article titled “The Hong Kong Bond Market in 2022”. The bulletin can be accessed and downloaded from the HKMA website. resource: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/03/20230330-5/ [...]

Circular to licensed corporations – Data risk management

March 31, 2023

The SFC has issued a circular to guide licensed corporations (LCs) on data risk management practices. The circular emphasizes the need for robust risk governance frameworks and controls to mitigate the risk of operational disruptions, reputational or financial losses arising from inadequate data management practices. To ensure effective management of [...]

Circular to licensed corporations – Management of operational and remote booking risks of trading activities

March 31, 2023

The SFC has provided guidance to licensed corporations (LCs) on managing operational and remote booking risks that may arise from trading activities. The circular highlights the importance of having adequate risk governance, controls, and monitoring to identify and mitigate operational risks that can arise from internal processes, people, and systems. [...]

HKMA Half-Yearly Monetary and Financial Stability Report (March 2023 Issue)

March 30, 2023

The Hong Kong Monetary Authority (HKMA) has released its Half-Yearly Monetary and Financial Stability Report for March 2023, which provides detailed analyses of the global and local economy, monetary and financial conditions in Hong Kong, and the recent performance and risks of the local banking sector. The report is available [...]

Margin Requirements and Adjustment of Routine Intra-day Variation Margin Calls during Easter Holidays

March 28, 2023

The circular by HKEX regarding OTC Clearing announces the application of a Holiday Margin for Clearing Members. On April 6, 2023, a Holiday Margin of 19% of a Clearing Member’s Initial Margin requirement will be added to the End-of-Day Initial Margin call, which must be settled within one hour after [...]

Circular to intermediaries, responsible officers and licensed representatives – Waiver of annual licensing fees

March 28, 2023

The Securities and Futures Commission (SFC) has announced that it will waive the annual licensing fees of all intermediaries and licensed individuals from 1 April, 2023, to 31 March, 2024. The SFC will not issue any demands for payment for annual licensing fees during this period, but all other fees, [...]

SFC consults on proposed subsidiary legislation for implementing an uncertificated securities market in Hong Kong

March 28, 2023

The Securities and Futures Commission (SFC) has launched a consultation on the proposed subsidiary legislation to implement an uncertificated securities market (USM) in Hong Kong. The proposed subsidiary legislation includes two new sets of rules: the Securities and Futures (Uncertificated Securities Market) Rules, which outline the operational and technical matters [...]

1 form specified under section 23 of the Companies Ordinance (Chapter 622) is revised for use under the Ordinance with effect from 1 April 2023

With effect from 1 April 2023, the Application for Disclosure of Protected Information (By solicitor or foreign lawyer/certified public accountant (practising)/financial institution or DNFBP) (PS3) is revised under section 23 of the Companies Ordinance (Chapter 622). The revised information is related upon section 58(3) of the Ordinance. resource: https://www.cr.gov.hk/en/publications/docs/GN1578_e.pdf [...]

Compliance Bulletin (Issue No. 7) – (1) Block Trade Execution, (2) Large Open Position (“LOP”) Reporting Procedures for Derivatives Holiday Trading, and (3) Standard Penalties under HKEX Rules

The Exchange has released a Compliance Bulletin to promote transparency and a compliance culture in the marketplace. The bulletin covers common deficiencies and good practices observed in block trade execution, as well as reminders on LOP reporting requirements for Derivatives Holiday Trading and standard penalties under HKEX Rules. The goal [...]

New Specialist Technology Company Listing Rules

The Stock Exchange of Hong Kong, which is a subsidiary of HKEX, has announced that it will expand its listing framework for Specialist Technology Companies on March 31, 2023. Companies interested in listing under the new chapter can submit a formal application. This Specialist Technology chapter builds on the 2018 [...]

HKMA and BIS co-host international financial regulatory conference

Hong Kong’s recent international financial regulatory conference was organized by the HKMA and the BIS and brought together over 100 senior officials from more than 25 economies. The discussions centered around the latest banking regulatory and supervisory policies aimed at maintaining global financial stability. The conference marked Hong Kong’s return [...]

SFC concludes consultation on introduction of new regulated activity for depositaries of public funds

The Securities and Futures Commission has proposed legislative and code amendments to introduce a new regulatory regime, Type 13 regulated activity (RA 13), for depositaries of SFC-authorised collective investment schemes. The legislative amendments have been gazetted, and the new regime will come into effect on October 2, 2024. The SFC [...]

United Nations (Anti-Terrorism Measures) Ordinance/ United Nations Sanctions (ISIL and Al-Qaida) Regulation

March 24, 2023

On 17th March 2023, an updated list of terrorists and terrorist associates under the United Nations (Anti-Terrorism Measures) Ordinance has been published in the Gazette, and an updated list of individuals, groups, undertakings, and entities under the United Nations Sanctions (ISIL and Al-Qaida) Regulation has been published on the website [...]

Expiry of the Revenue (Reduction of Business Registration Fees and Branch Registration Fees) Order 2022

The current reduction of HK$2,000 in the prescribed business registration fee will expire on 1 April 2023, and all applications for company incorporation and registration must include the correct fee and levy from that date. The Companies Registry expects a surge in applications in March and may not be able [...]

The HKMA’s Response to the US Fed’s Rate Hike

The Federal Reserve raised the target range for the federal funds rate to 4.75-5%, resulting in the Hong Kong Monetary Authority (HKMA) adjusting the Base Rate upward to 5.25% in accordance with established mechanisms. The Fed’s decision was expected, but uncertainties remain on the interest rate path in the US, [...]

Adjustment of the Base Rate

The Hong Kong Monetary Authority (HKMA) has announced that the Base Rate has been set at 5.25% with immediate effect, based on a pre-set formula. The Base Rate is used to calculate the Discount Rates for repurchase transactions through the Discount Window. It is currently set at either 50 basis [...]

HKMA’s response to media enquiries

The Hong Kong Monetary Authority has clarified that the Financial Institutions (Resolution) Ordinance establishes the legal basis for the resolution regime in Hong Kong and sets out a clear order of creditor hierarchy. Holders of capital instruments, such as core equity capital, Additional Tier 1 (AT1) capital, and Tier 2 [...]

Court reaffirms SFC’s power of issuing restriction notices

The Court of First Instance has dismissed a judicial review application by Mr Chen Wencan and Ms Su Jiaqi against the Securities and Futures Commission (SFC) regarding restriction notices issued in an ongoing investigation into a suspected “ramp-and-dump” scheme. The applicants challenged the restriction notices issued by the SFC to [...]

SFC publishes quick reference guides for licensing requirements

The Securities and Futures Commission (SFC) has published quick reference guides to assist family offices, private equity firms, hedge fund managers, and overseas and Mainland industry professionals in better understanding the SFC’s licensing regime. The guides address frequently-asked questions about licensing topics and provide specific information about licensing carve-outs for [...]

Website alert : https://shaobank.com/ from HKMA

March 22, 2023

The Hong Kong Monetary Authority (HKMA) has issued a warning to the public in Hong Kong regarding Shao Bank. The HKMA has clarified that Shao Bank is not authorized to conduct banking business or take deposits in Hong Kong, and it has not been approved to establish a local representative [...]

UBS AG’s acquisition of Credit Suisse AG

March 20, 2023

The acquisition of Credit Suisse AG by UBS AG, supported by liquidity assistance from the Swiss National Bank (SNB), has been welcomed by the Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA). Customers will continue to have access to Credit Suisse’s deposits and trading [...]

SFC issues guidance in light of new Mainland rules for overseas listings

March 20, 2023

Updates on Guidance Guidance of the upcoming Mainland regulations for overseas listing, effective from 31 March 2023, has been released by the Securities and Futures Commission (SFC). There are updates on the Frequently Asked Question (FAQ) on the “Disclosure of interests in PRC issuers” under Part XV of the Securities [...]

EXCHANGE PUBLISHES LISTING COMMITTEE REPORT 2022

March 15, 2023

The Exchange has released its Listing Committee Report for 2022, detailing its activities and policy agenda for 2023 and beyond. In 2022, the Listing Committee reviewed 126 listing applications and heard six reviews and 29 disciplinary cases. The year also saw ten “homecoming” listings by Greater China issuers, and five [...]

Practice Session for Northbound Trading Under Stock Connect to Support the Listing Regime Update of Shanghai Stock Exchange and Shenzhen Stock Exchange

March 15, 2023

Regarding updating the listing regulations of the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE), China Connect Exchange Participants (CCEPs) should be aware that SSE and SZSE will conduct a Practice Session (PS) on March 18, 2023 (Saturday). However, participation in the PS is not mandatory, and CCEPs who [...]

COMMENCEMENT OF END-TO-END (E2E) TEST FOR MIGRATION OF NORTHBOUND (NB) BROKER-TO-CLIENT ASSIGNED NUMBER (BCAN) FILE SUBMISSION AND DOWNLOAD FUNCTIONS TO ELECTRONIC COMMUNICATION PLATFORM (ECP)

March 14, 2023

The Exchange is arranging an End-to-End (E2E) test for the migration of Northbound Broker-to-Client Assigned Number (BCAN) file submission and download functions to the Electronic Communication Platform (ECP). This migration test will be conducted from 4 April 2023 to 28 April 2023. It is mandatory for all China Connect Exchange Participants [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism (1) FATF Statement on High-Risk Jurisdictions subject to a Call for Action (2) FATF Statement on Jurisdictions under Increased Monitoring (3) Outcomes from the FATF Plenary, 22-24 February 2023

March 13, 2023

FATF Statement on High-Risk Jurisdictions subject to a Call for Action The Financial Action Task Force (FATF) has issued a statement on high-risk jurisdictions subject to a call for action, calling on all members to apply enhanced due diligence and countermeasures to protect the international financial system from money laundering, [...]

Joint consultation on changes to the OTC derivative Clearing Rules

March 13, 2023

The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) have launched a joint consultation on proposed changes to the Clearing Rules for over-the-counter (OTC) derivatives, which would subject new types of transactions to clearing obligations. The proposed changes align with global interest rate benchmark reform, which aims [...]

United Nations Sanctions (Somalia) Regulation 2019 (Amendment) Regulation 2023

March 10, 2023

This regulation amends the United Nations Sanctions (Somalia) Regulation 2019 (Chapter 537, subsidiary legislation CG) to implement the resolution 2662 (2022) adopted by the United Nations Security Council (UNSC) on 17 November 2022, which made several decisions regarding Somalia. On 9 December 2022, the UNSC adopted resolution 2664 (2022), which [...]

SFC issues quarterly report

March 8, 2023

The latest Quarterly Report published by the Securities and Futures Commission (SFC) provides an overview between October and December 2022, when the business activity began to pick up. In addition, the Report offers a comprehensive summary of significant developments during the period, thereby providing valuable insights into the current state [...]

Revision of Liquidity Risk Multiplier in Initial Margin calculation

March 8, 2023

OTC Clear has recently drawn up its updated Liquidity Risk Multiplier following an intensive review and calibration process in accordance with Chapter 4 of the OTC Clearing Hong Kong Limited Clearing Procedures. This was based on the poll results from all Clearing Members in December 2022, which have been meticulously [...]

Balanced and effective AML/CFT measures in private banking

March 8, 2023

The Hong Kong Monetary Authority (HKMA) has been working alongside the banking sector to adopt effective anti-money laundering and counter-terrorist financing (AML/CFT) systems and controls to maintain market integrity. Despite the importance of such measures, ensuring that their implementation puts a manageable burden on the public or legitimate businesses when [...]

Circular to Licensed Corporations Updated Frequently Asked Questions (FAQs) on OTC Derivatives Clearing Requirement

March 6, 2023

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have jointly updated their FAQs for the Securities and Futures (OTC Derivative Transactions – Clearing and Record Keeping Obligations and Designation of Central Counterparties) Rules to include eight new Calculation Periods. The FAQ document also provides details [...]

Amendments to the Rules of the Exchange (the “Rules”)

March 6, 2023

Holders of Stock Exchange Trading Rights and Exchange Participants are advised to note that the new dual structure price limit, which is either 24 spreads or 3.5% from the reference price, will come into effect on Monday, 20 March 2023. As such, market makers must comply with the new dual structure [...]

Circular to Intermediaries Arrangements for the launch of the Hong Kong Investor Identification Regime

March 3, 2023

Relevant Regulated Intermediaries (RRIs)are reminded that the HKIDR will be launched on 20 March 2023. RRIs should also ensure that the HKIDR is updated with the required CID and BCAN information. This data must be collected, maintained and securely stored in accordance with the Code of Conduct and SEHK’s Rules. RRIs [...]

Routine Collateral Haircut Review and Adjustment

March 2, 2023

According to the OTC Clearing Hong Kong Limited Clearing Procedures Chapter 7, OTC Clear has reviewed the routine Collateral haircut and decided to adjust the haircut ratios on cash and non-cash Collateral, and it will be effective on 7 March 2023. This haircut shall be applied on a daily basis [...]

Change of Authentication for CCASS Terminal – (i) Reminder of email registration for CCASS users; (ii) Kick-off of email registration for CCASS Delegated Administrators

March 1, 2023

It is essential for all CCASS Participants (CPs), Delegated Administrators (DAs) and Designated Banks (DBs) to take note of the upcoming 2FA migration deadline. All user-designated email addresses must be registered through the Security Management Functions (DMS) of CCASS by April 28th 2023 (Friday). This is to ensure that all users can [...]

RULE UPDATE – CCASS OPERATIONAL PROCEDURES

February 28, 2023

The Amendments for the purpose of facilitating an enhancement to the trading calendar for Stock Connect will become effective on April 24, 2023. The definitions of the settlement day will be : “T+1” means the Settlement Day immediately following T-day; (b) When used in the Operational Procedures, the following expressions shall [...]

EXCHANGE PUBLISHES CONSULTATION PAPER ON RULE AMENDMENTS FOLLOWING MAINLAND CHINA REGULATION UPDATES AND OTHER PROPOSED RULE AMENDMENTS RELATING TO PRC ISSUERS

February 27, 2023

The Stock Exchange of Hong Kong Limited (the Exchange) published a consultation paper. The consultation paper outlines rule amendments that the Exchange plans to introduce regarding PRC issuers. The Exchange proposes that the Rules be amended to relax specific listing requirements for PRC issuers by removing references to obsolete Chinese [...]

Launch of Trading Calendar Enhancement for Stock Connect

February 27, 2023

The new adjustments to the trading calendar for Northbound and Southbound Stock Connect will become effective on April 24, 2023. The changes aim to resolve discrepancies between Stock Connect holidays and mainland Chinese or Hong Kong market holidays while increasing the total number of days available for Stock Connect trading. 1.Settlement [...]

SME Financing Guarantee Scheme Extends Application Period

February 23, 2023

The application period for the 80% Guarantee Product, 90% Guarantee Product and Special 100% Loan Guarantee of the SME Financing Guarantee Scheme are beneficial to Small and Medium Enterprises (SMEs) and will be extended to end-March 2024. This extension will provide more flexibility in financing arrangements ensuring they have access [...]

SEOCH Reserve Fund Variable Contributions

February 23, 2023

The newly recalculated Reserve Fund Requirement pursuant to SEOCH Rule 407 has resulted in a new market total Variable Contribution (“VC”) of HK$355 million, to be shared by all SEOCH Participants based on their daily average total margin requirement and net premium paid during the period from 22 November 2022 to [...]

SFC welcomes government budget measures

February 23, 2023

The SFC is particularly pleased with the measures proposed by the Financial Secretary to strengthen Hong Kong as a prime listing destination for international issuers, create an enabling environment for innovative green financing and expand the reach of our financial products markets. The new initiatives include the development of green [...]

SFC consults on proposals to regulate virtual asset trading platforms

February 21, 2023

The SFC launched a consultation on proposed requirements designed to protect investors and reduce the risks associated with virtual assets trading platforms. Under the new licensing regime, virtual asset trading platforms must demonstrate that they adhere to the same standards for investor protection as other securities and futures intermediaries regulated [...]

SFC and CSRC enter into an MoU on regulatory cooperation

February 20, 2023

Joint Announcement of the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission This Memorandum of Understanding (MoU) marks a significant milestone in the deepening of cross-border regulatory cooperation on matters concerning the listing of Mainland enterprises in Hong Kong. It seeks to improve coordination between the [...]

Circular to Licensed Corporations Engaged in Asset and Wealth Management Activities – Asset and Wealth Management Activities Survey 2022

February 20, 2023

The SFC is conducting a survey to collect information on asset and wealth management activities in Hong Kong for regulatory and market facilitation purposes. This survey aims to provide the SFC with valuable insights into the state of the asset and wealth management industry in Hong Kong. For those licensed corporations [...]

Leveraging Commercial Data Interchange for digitalisation of banking processes

February 17, 2023

The HKMA encourages institutions to make the best use of Commercial Data Interchange (CDI). CDI has the potential to revolutionize banking processes and create new opportunities for corporate customers. It provides a secure, efficient, cost-effective way of exchanging large amounts of data between banks and their corporate customers. With CDI, [...]

【Order No. 204】Measures for the Administration of Securities Brokerage Business

February 15, 2023

Background The regulation is applicable to Chinese residents and cross-border securities businesses. To run the securities business, it needs approval from the China Securities Regulatory Commission. The amendment of the regulatory policy is a warning to illegal cross-border securities businesses. Implementing these measures should increase investor protection and ensure more [...]

HONG KONG INVESTOR IDENTIFICATION REGIME (HKIDR) – PRACTICE SESSION (FOR BCAN TAGGING ONLY) ON 25 FEBRUARY 2023

February 13, 2023

HKEx provides a half-day practice session for Exchange Participants (Eps) on 25 February 2023. The Practice Session will simulate the trading environment of the HKIDR and provide EPs with an opportunity to confirm their BCAN tagging setup. During the practice session, all participants are encouraged to submit actual orders through the [...]

Monetary Authority Announces Countercyclical Capital Buffer Ratio for Hong Kong

February 9, 2023

The Monetary Authority announced that the countercyclical capital buffer (CCyB) ratio for Hong Kong remains unchanged at 1%. The CCyB will require banks to hold additional capital buffers when credit growth in the banking sector rises above a certain level. These extra buffers are intended to ensure that banks have [...]

Block Trade Participant Program for MSCI Asia and Emerging Market Index Futures Suite in 2023

February 7, 2023

The Hong Kong Futures Exchange Limited (the “Exchange”) announced the launch of a Block Trade Participant (“BTP”) Program for the MSCI Asia and Emerging Market Index Futures Suite (“MSCI Suite”) to support the liquidity development of MSCI Suite in 2023. The BTP Program is designed to facilitate the execution of [...]

Routine Collateral Haircut Review and Adjustment

February 3, 2023

According to the OTC Clearing Hong Kong Limited Clearing Procedures Section 2.6.2 of the Clearing House Procedures of HKFE Clearing Corporation Limited (HKCC) and Section 10.4.3.1 of the Operational Clearing Procedures of The SEHK Options Clearing House Limited (SEOCH), OTC Clear has reviewed the routine Collateral haircut and decided to [...]

Adjustment of the Base Rate

February 2, 2023

The Hong Kong Monetary Authority(HKMA) announced today that the Base Rate has been set at 5.00% with immediate effect. resource: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/02/20230202-3/ [...]

Notification of Routine Recalculation of Rates and FX Guarantee Fund

February 2, 2023

Rates and FX Contribution Determination Date. The recalculation of the routine Rates and FX Guarantee Fund was carried out in accordance with Section 6.7 of the OTC Clearing Hong Kong Limited Clearing Procedures. The recalculation incorporated all settled trades that have taken place during the GF Calculation Period from 2 [...]

HONG KONG INVESTOR IDENTIFICATION REGIME (HKIDR) – SUBMISSION OF BCAN-CID MAPPING DATA

February 1, 2023

Relevant Regulated Intermediaries are urged to submit the BCAN-CID Mapping File via the Electronic Communication Platform (ECP) before 20 March 2023 to facilitate a smooth transition into HKIDR and ensure their clients’ BCANs and Client Identification Data (CID) are registered in preparation for subsequent trading. In addition, HKEX also reminds that they [...]

Conclusion of discussion paper on crypto-assets and stablecoins

February 1, 2023

On 12 January 2022, the HKMA issued a discussion paper on crypto-assets and stablecoins and invited feedback from stakeholders who are come from the industry, public bodies, business and professional organisations, and individuals. By the end of 31 March 2022, the HKMA received total 58 submissions. Respondents are agreed the [...]

Government welcomes passage of Stamp Duty (Amendment) Bill 2022

January 31, 2023

The Stamp Duty (Amendment) Bill 2022 was passed on 18 January. It gives effect to the proposed exemption of stamp duty payable for some transactions regarding dual-counter stock made by market makers. The amended Ordinance was effective on 27 January 2023. The HKEX plans to formally launch the Dual Counter [...]

MIGRATION OF NORTHBOUND (NB) BROKER-TO-CLIENT ASSIGNED NUMBER (BCAN) FILE SUBMISSION AND DOWNLOAD FUNCTIONS TO ELECTRONIC COMMUNICATION PLATFORM 2.0 (ECP 2.0)

January 30, 2023

HKEX plans to implement the Migration of the platform. During the first phase, HKEX will provide an online platform for participants to submit and download NB BCAN files on ECP 2.0. The Migration will enable HKEX and its participants to benefit from a platform designed with the latest technology. The [...]

The Companies (Amendment) Ordinance 2023 (“the Amendment Ordinance”) will come into operation on 28 April 2023.

January 30, 2023

The Amendment Ordinance provides a modern framework for general meetings held virtually. It seeks to simplify the process of holding general meetings while ensuring that stakeholders’ interests are protected. The provisions under the Amendment Ordinance also enable companies to use new technologies better in conducting their general meetings. The members [...]

EXCHANGE PUBLISHES RESULTS OF REVIEW OF ISSUERS’ 2021 ANNUAL REPORTS

January 27, 2023

HKEX published the results of the review of issuers’ 2021 annual reports and made recommendations, including financial reporting and related controls and disclosure on material lending transactions. HKEX suggested that the directors of issuers should exercise diligence and care when assessing the appropriateness of management’s accounting estimates and the assumptions adopted [...]

BCBS issued FAQs to clarify how climate-related financial risks

January 26, 2023

The HKMA is looking to embed climate-related financial risks into its supervisory framework by taking cues from The Basel Committee on Banking Supervision (BCBS)’s recently issued FAQs. Authorized institutions should ensure their interpretations and applications of the existing Basel Framework incorporate these important considerations around potential environmental threats. Read more: [...]

Circular to licensed corporations Thematic review of Data Standards for Order Life Cycles

SFC found that although the SFC has repeatedly reminded In-Scope Brokers to implement system changes and make other arrangements needed for compliance with DS-OL, the thematic review noted that some In-Scope Brokers are still unprepared. For examples, some In-Scope Brokers only relied on information technology staff to establish the system [...]

Circular to Intermediaries Launch of the Hong Kong Investor Identification Regime

SFC has decided to launch the Hong Kong Investor Identification Regime (HKIDR) on 20 March 2023. Upon the launch of the HKIDR, RRIs are required to tag the relevant Broker-to-Client Assigned Number (BCAN) to every on-exchange order and off-exchange trade reportable to the Stock Exchange of Hong Kong Limited (SEHK). It will [...]

Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022

On 16 December 2022, the Securities and Futures Commission (SFC) announced an amendment that is the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 (Amendment Ordinance). There are three changes relating to customer due diligence (CDD) measures and which will be effective on 1 June 2023. The definition of a [...]

Circular to Intermediaries Updates on the Over-the-counter Securities Transactions Reporting Regime (OTCR)

The OTCR will be launched on 25 September 2023. To ensure the Relevant Regulated Intermediaries are well prepared to use the platform, the OTCR WebApp and OTCR SFTP submission channels on WINGS already released on 29 December 2022, and until 18 September 2023, which is one week before the launch [...]

Circular to Licensed Corporations and Associated Entities Revised Business and Risk Management Questionnaire

Circular to Licensed Corporations and Associated Entities Revised Business and Risk Management Questionnaire The Securities and Futures Commission (SFC) published a revised Business and Risk Management Questionnaire (BRMQ) last month for licensed corporations (LCs) and associated entities (AEs), which shall be used for financial years ending on or after 30 [...]

UAE And UK Agree to Collaborate in Energy Sector

January 17, 2023

The MoU aims to create a framework for the strengthening of cooperation on energy and renewable energy technology, in order to contribute to an economically and environmentally sustainable future. This includes regulating frameworks, incentives, smart grids and related technologies as well as the development of environmentally sustainable transportation and electric [...]

Taiwan’s Central Securities Depository Agency Plans to Launch eNotice to Reduce Paper Waste

January 16, 2023

The Taiwan Depository and Clearing Corporation (TDCC) announced a new function in its TDCC’s e-passbook app, which aims to reduce the use of paper and help the environment. The new function allows users to check their balances at 14 banks and enables company shareholders to receive any letters about cash [...]

Deloitte Launches Climate Tech Ecosystem to Connect Businesses with Solutions and Innovators

January 13, 2023

Deloitte announced the launch of GreenSpace Tech, aimed to help clients to identify, advance and deploy climate tech solutions to attain their sustainability and decarbonization goals. The new initiative will connect businesses with an ecosystem of climate technologies and innovators, helping them to navigate the rapidly changing climate tech landscape, [...]

Virtual assets: Hong Kong retail investors will only have access to ‘highly liquid’ products, SFC’s new boss Julia Leung says

January 12, 2023

The Asian Financial Forum 2023 opened yesterday. During the Forum, Julia Leung, the newly appointed CEO of the Securities and Futures Commission (SFC), announced that a consultation paper on virtual assets will be issued in this quarter and new licensing rules for virtual assets platforms will be effective in June. [...]

AFRC issues 2022 Interim Inspection Report and Report on Oversight of HKICPA regulatory functions

November 17, 2022

The Accounting and Financial Reporting Council (AFRC) today issues its: 2022 Interim Inspection Report on its inspections of public interest entity (PIE) auditors completed from 1 April 2022 to 30 September 2022; and 2022 Oversight Report on its oversight of the performance by the Hong Kong Institute of Certified PublicAccountants [...]

Exchange Publishes New Guidance Note on Cooperation and Updated Sanctions Statement

October 26, 2022

he Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Tuesday) published (1) a new Guidance Note on Cooperation, and (2) a revised Sanctions Statement. The Enforcement Policy Statement has been updated to include links to these documents. The new set of guidance [...]

SFC welcomes Chief Executive’s initiatives to enhance Hong Kong’s competitiveness

October 20, 2022

The Securities and Futures Commission (SFC) welcomes and fully supports the financial services initiatives in the Chief Executive’s Policy Address to strengthen Hong Kong’s competitiveness as an international financial centre. The SFC’s Chairman, Mr Tim Lui said: “The vision laid out by the Chief Executive to enhance Hong Kong’s position [...]

EXCHANGE PUBLISHES CONSULTATION PAPER ON NEW LISTING RULES FOR SPECIALIST TECHNOLOGY COMPANIES

October 20, 2022

The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Wednesday) published a consultation paper seeking public feedback on proposals to expand Hong Kong’s existing listing regime to permit listings of Specialist Technology Companies1. HKEX Chief Executive Officer, Nicolas Aguzin, [...]

Circular on Operation of Bank accounts

July 7, 2021

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Circular to intermediaries, responsible officers and licensed representatives Waiver of annual licensing fees

March 23, 2021

19 Mar 2021 The Securities and Futures Commission (SFC) will waive the annual licensing fees of all intermediaries and licensed individuals incurred during the period from 1 April 2021 to 31 March 2022. The SFC will not issue the usual demands for payment for annual licensing fees which would ordinarily [...]

[Regulatory Updates] Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter-Financing of Terrorism

March 10, 2021

(1) FATF Statement on High-Risk Jurisdictions subject to a Call for Action Further to our circular issued on 9 November 2020 Note 1, this is to inform you that the Financial Action Task Force (“FATF”) in a statement issued on 25 February 2021 Note 2 advised its members to refer [...]

AML/CFT Regtech: Case Studies and Insights

January 21, 2021

21 Jan 2021 HKMA published today (21 January 2021) a report titled “AML/CFT Regtech: Case Studies and Insights” highlighting the opportunities that Regtech offers to transform the effectiveness and efficiency of Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) efforts, and sharing end-to-end approaches which worked in real-life examples. Following the [...]

HKEX STATEMENT ON STRUCTURED PRODUCTS

January 11, 2021

10 Jan 2021 Hong Kong Exchanges and Clearing Limited (HKEX) notes the decision to delist some structured products by some issuers, as a direct result of the US imposed sanctions. We do not believe this will have a material adverse impact on Hong Kong’s structured products market, the largest in [...]

SFC concludes consultation on customer due diligence requirements for open-ended fund companies

December 23, 2020

23 Dec 2020 SFC today released consultation conclusions on proposed customer due diligence requirements for open-ended fund companies (OFCs). The SFC will implement the proposal to require OFCs to appoint a responsible person to carry out anti-money laundering and counter financing of terrorism (AML/CFT) functions, in line with the Financial [...]

SFC licenses first virtual asset trading platform

December 16, 2020

16 Dec 2020 The Securities and Futures Commission (SFC) announces that it has granted the first licence to a virtual asset trading platform in Hong Kong. The platform will only serve professional investors under the close supervision of the SFC (Note 1) and will be subject to tailor-made requirements similar [...]

SFC statement on US sanctions

November 12, 2020

12 Nov 2020 The SFC is issuing this statement in response to enquiries following the latest announcement by the US government on the imposition of sanctions against additional individuals in Hong Kong and Mainland China. The SFC reiterates that in considering the implications of the sanctions, intermediaries are expected to [...]

Insurance Authority consults on the proposed Insurance (Special Purpose Business) Rules

September 7, 2020

4 Sep 2020 The Insurance Authority launched a six-week public consultation on the draft Insurance (Special Purpose Business) Rules (the “SPB Rules”) to tie in with the expected implementation of the new regulatory regime for the issuance of insurance-linked securities (“ILS”) in Hong Kong in 2021. ILS are sophisticated financial [...]

SFC concludes consultation on changes to the open-ended fund companies regime and further consults on customer due diligence requirements

September 4, 2020

2 Sep 2020 The SFC today released consultation conclusions on enhancements to the open-ended fund companies (OFC) regime , including the removal of all investment restrictions for private OFCs. The SFC will also allow licensed or registered securities brokers to act as custodians for private OFCs and introduce a statutory [...]

Exchange publishes consultation conclusion on codification of general waivers and principles relating to IPOs and listed issuers and minor rule amendments

September 1, 2020

28 Aug 2020 The Stock Exchange of Hong Kong Limited today published conclusions to its consultation on the Codification of General Waivers and Principles relating to IPOs and Listed Issuers and Minor Rule Amendments (Consultation Conclusions). The Exchange also published a new Guidance Letter on Experience and Qualification Requirements of [...]

Applications for new licences by insurance agents and their technical representatives, licensed insurance brokers and their technical representatives who are deemed licensees

25 August 2020 When the Insurance Authority took over the direct supervision and regulation of insurance intermediaries on 23 September 2019, all insurance agents, their responsible officers (“ROs”) and their technical representatives (“TRs”) registered with the Insurance Agents Registration Board immediately prior to that date, and all insurance broker companies, [...]

Hong Kong’s asset and wealth management business reports strong growth in 2019

25 August 2020 The SFC latest Asset and Wealth Management Activities Survey found that the assets under management (AUM) of the asset and wealth management business in Hong Kong increased by 20% year-on-year to $28,769 billion as at 31 December 2019. “Hong Kong’s asset and wealth management business posted strong [...]

Insurance Authority office reopens to the public from 24 August

22 August 2020 The IA today announced that its office will reopen to the public and resume normal public services starting 24 August 2020. To minimise social contact and the risk of virus infection, members of the public are encouraged to make use of the IA’s hotline and online services [...]

Exchange Publishes Chapter 37 Consultation Conclusion and Guidance on Disclosures in Listing Documents and Continuing obligations under Chapter 37

21 August 2020 The Exchange received 22 responses from a broad range of respondents. The feedback indicated strong support for the consultation proposals to enhance the listing regime for debt issues to professional investors only (Professional Debt Regime). The Exchange will implement the consultation proposals, with modifications, reflecting comments received. [...]

Latest arrangements for Companies Registry’s public services starting from 24 August

21 August 2020 Starting from 24 August, the Companies Registry will reopen the Public Search Centre on Monday, Wednesday and Friday while maintaining the limited counter services which it provides currently from Monday to Friday. Read more: https://www.cr.gov.hk/en/about/news/highlights.htm [...]

SFC issues quarterly report

August 21, 2020

20 August 2020 The SFC today published its latest Quarterly Report which summarises key developments from April to June 2020. To ensure that Hong Kong’s international financial markets function efficiently during the COVID-19 outbreak, the SFC stepped up its supervisory work and stress tests and allowed a measure of flexibility [...]

Insurance Authority consults on the proposed Insurance (Group Capital) Rules

August 21, 2020

19 Aug 2020 The Insurance Authority launched a six-week public consultation on the draft Insurance (Group Capital) Rules (the “Group Capital Rules”) to tie with the implementation of the new supervisory framework for multinational insurance groups tentatively in the first quarter of 2020. The main objective of the proposed Group [...]

Fees Reduction on Annual Return and e-Incorporation of Companies (with effect from 1 October 2020)

August 20, 2020

17 August 2020 With effect from 1 October 2020, the registration fees for annual returns (except for late delivery) charged by the Companies Registry will be waived for two years, and the fees payable for electronic incorporation of companies (including registration of non-Hong Kong companies) will also be reduced by [...]

Statement on Next Digital Limited

August 11, 2020

August 11 The SFC is issuing this statement in response to a large volume of enquiries it has received and the overall level of public interest in relation to the significant recent increases in the price and turnover in the shares of Next Digital Limited. In view of these exceptional [...]

iAM Smart Pilot Sandbox Programme

August 10 iAM Smart is one of the Government’s newest innovation initiatives to facilitate Hong Kong residents transacting online with the Government and commercial entities by enabling them to use a single unique electronic identity. Hong Kong residents can register and use iAM Smart free of charge and on a [...]

Response of the Insurance Authority to imposition of sanctions by the United States Government on individuals in Hong Kong

8 August 2020 The Insurance Authority (IA) is closely monitoring repercussions arising from unilateral sanctions recently imposed by the United States Government on a number of individuals in the Mainland and Hong Kong on 7 August 2020. An IA spokesperson said, “In assessing potential impact arising from the sanctions, market [...]

SFC statement on sanctions imposed by the US government

8 August 2020 On 7 August 2020, the US government announced the imposition of sanctions against individuals in Hong Kong and Mainland China. The SFC is monitoring closely the impact that the sanctions may have on the operation of intermediaries, the interests of investors and financial stability and orderliness of [...]

EXCHANGE PUBLISHES CONSULTATION PAPER ON REVIEW OF DISCIPLINARY POWERS AND SANCTIONS