Hong Kong

    Market Infrastructure

    Hong Kong, China to Launch ‘Swap Connect’ in Six Months

    By Sanday Chongo Kabange | 05/07/2022

    Swap Connect will initially enable Hong Kong and international investors to trade in Mainland interest rate swaps, and potentially other derivatives in futures.

    Capital / Liquidity

    HKMA Explores Use of Deep Learning for Credit Risk Assessment

    By Editors | 04/07/2022

    A trained model was able to consistently detect corporate credit deterioration at both the transaction level and aggregate level with a three-month lead time.

    ESG / Sustainability

    HKMA to Integrate Climate Risk in Supervisory Processes

    By Editors | 01/07/2022

    Climate risk management will be a standing item in annual prudential meetings with banks. The CAMEL rating framework will be updated.

    ESG / Sustainability

    SFC Reviewing Market Practices to Guard Against Risk

    By Manesh Samtani | 30/06/2022

    Reviews underway cover concentration risk in OTC derivatives markets, risk management at futures brokers, and block trading practices.

    Securities / Derivatives

    HK FRC Explores Joint Audit Inspections with Mainland Authorities

    By Editors | 29/06/2022

    Hong Kong’s Financial Reporting Council already has 13 cases involving mainland audit work papers, two of which have been concluded.

    Securities / Derivatives

    ETFs to Be Included in Stock Connect Starting 4 July

    By Editors | 29/06/2022

    The relevant rules and operational and regulatory arrangements have been finalised and technical systems have been put in place.

    Enforcement

    SFC Fines CES Capital for Fund Management Failures

    By Editors | 28/06/2022

    CES Capital International failed to perform sufficient due diligence and monitoring of the underlying investments of two funds.

    Fintech / Regtech

    Impacts of New PCPD Guidance on Cross-border Data Transfers

    By Albert Yuen | 27/06/2022

    FIs in Hong Kong should review whether their commercial agreements contain requirements equivalent to the recommended model contractual clauses, say Albert Yuen and Eunice Lee.

    Securities / Derivatives

    HKMA, SFC to Proceed With Changes to FSP List

    By Editors | 27/06/2022

    One new entity, Nomura Financial Products Europe GmbH, is being added to the FSP List under the OTC derivatives regime.

    AML / KYC

    Hong Kong VASP Regime to Take Effect on 1 March 2023

    By Natalie Curtis | 26/06/2022

    The government acknowledges that the VASP regime will be more rigorous and comprehensive than those in Singapore, UK and Japan.

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