Hong Kong
On 9 September 2024, the Securities and Futures Commission (SFC) issued a circular that sets out the conditions under which it would consider it acceptable to distribute research reports relating to eligible Mainland exchange-traded funds (ETFs) under Stock Connect (Relevant Reports) in Hong Kong pursuant to section 103 of the Securities and Futures Ordinance (SFO). The requirements and conditions for distributing Relevant Reports are generally consistent with the existing practices and requirements for the distribution of research reports on eligible Mainland stocks under Stock Connect. Please click here.
On 26 September 2024, in line with the Group of 20’s commitment to reform the over the counter (OTC) derivatives markets, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) issued a joint consultation conclusions paper. This follows their previous joint consultation paper published on 22 March 2024, which addressed the mandatory use of Unique Transaction Identifier and Unique Product Identifier, the reporting of Critical Data Elements, and the adoption of the ISO 20022 standard. For more information, please click here.
On 16 September 2024, the HKMA and AMCM announced a direct linkage between Hong Kong’s Central Moneymarkets Unit and Macao’s central securities depository. This will enable investors in both regions to clear, settle, and hold bonds across jurisdictions, enhancing financial cooperation and market access within the Guangdong-Hong Kong-Macao Greater Bay Area. Official launch details will follow. For more information, please click here.
On 16 September 2024, the Hong Kong Monetary Authority (HKMA) and the Dubai Financial Services Authority (DFSA) held their inaugural Joint Climate Finance Conference, gathering over 240 participants. The event focused on transition finance and collaboration opportunities under the theme “Building a Net-Zero Asia – Middle East Corridor.” An MOU was signed to deepen their partnership in sustainable finance and promote investment in green initiatives. For more information, please click here.
On 20 September 2024, a joint survey by the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) revealed a 14% increase in non-exchange-traded investment product sales, totalling $4,338 billion in 2023, up from $3,799 billion in 2022. This growth reflects improved market sentiment and a rise in firms engaged in sales, indicating a robust recovery in Hong Kong's investment market. For more information, please click here.
On 23 September 2024, the Hong Kong Monetary Authority (HKMA) launched Phase 2 of the e-HKD Pilot Programme, now renamed Project e-HKD+, to explore innovative use cases for e-HKD and tokenised deposits. Eleven groups from various sectors will investigate applications related to tokenised asset settlement, programmability, and offline payments. The initiative aims to address practical challenges in creating a digital money ecosystem and includes the establishment of the e-HKD Industry Forum for collaborative discussions. For more information, please click here
On 20 September 2024, Hong Kong Exchanges and Clearing Limited (HKEX) announced the formation of the Integrated Fund Platform (IFP) Task Force to enhance Hong Kong's fund distribution ecosystem. Supported by the HKSAR Government and the SFC, the Task Force will gather insights from key industry stakeholders. The IFP will feature a repository of SFC-authorised products and a centralised network to streamline distribution processes. More details will be shared in Q4 2024. For more information, please click here
On 11 September 2024, the Insurance Authority (IA) hosted a breakout session at the Belt and Road Summit to delve into the role of captive insurance in supporting Belt and Road projects, particularly those on less coal intensive energy, and how the insurance professional services ecosystem in Hong Kong can offer essential support and facilitation to these projects. For more information, please click here.
On 25 September 2024, the Securities and Futures Commission (SFC) announced that Hong Kong's securities industry saw a 50% increase in total net profits for the first half of 2024, reaching $19 billion. This growth was fuelled by higher market activity and an increase in active cash and margin clients, totalling 4.87 million. The report also highlighted $77 million in revenue from virtual assets dealing, demonstrating the industry's resilience and diversification in product offerings. For more information, please click here.
Enforcement
On 12 September 2024, the District Court set the trial for Mr. Li King Hong and others from 8 to 17 December 2025. They pleaded not guilty to fraud but guilty to illegal short selling, allegedly deceiving CVP Securities and benefiting $3.3 million. For more information, please click here.
On 16 September 2024, the Securities and Futures Commission (SFC) announced a settlement requiring three respondents to pay approximately $192 million to Combest Holdings Limited, intended for distribution to independent public shareholders. The settlement, subject to court approval on 2 April 2025, aims to provide $0.066 per share, significantly higher than the last trading price. This follows an SFC investigation revealing serious misconduct by the respondents, including overvalued acquisitions and financial mismanagement, resulting in substantial losses for Combest. SFC CEO Julia Leung emphasised the settlement's significance for minority shareholders and the first of its kind. For more information, please click here.
On 23 September 2024, the Securities and Futures Commission (SFC) banned Mr. Dennis Cheng Chung Sing, a former trader at Goldman Sachs, from the industry for six months. This followed an investigation revealing that Cheng had acted dishonestly to conceal a trade execution error in which he mistakenly entered 232,000 shares instead of 2,232,000. For more information, please click here.
On 2 September 2024, the Securities and Futures Commission (SFC) banned Mr. Charles Lam Chung Yiu, a former UBS associate director, for life due to his criminal convictions. Sentenced to seven years for theft and dealing with stolen property, Lam misused his position to divert nearly $1.88 million to his accounts between March and October 2020, making him unfit for regulated activities. For more information, please click here.
This document is provided for information purposes only and does not constitute legal, tax, investment, regulatory, accounting or other professional advice. For more information on the legal and regulatory status of IQ-EQ companies please visit www.iqeq.com/legal-and-compliance.