Hong Kong

Market Infrastructure

Hong Kong: National Security Law Expected to Cause Capital Flight

By Editors | 24/05/2020

Bankers are reportedly receiving requests to activate plans to withdraw assets from Hong Kong in light of Beijing’s plan to impose national security legislation in Hong Kong.

Securities / Derivatives

SFC to Allow Leveraged, Inverse ETFs Tracking Mainland Indices

By Editors | 24/05/2020

The SFC is prepared to initially only accept ‘swap-based’ L&I products tracking Mainland equity indices, with a leverage factor up to 2x, or negative 1x for inverse products.

Market Infrastructure

HKMA Publishes Findings from Bank Culture Reform Initiative

By Manesh Samtani | 24/05/2020

As a next step, the HKMA will conduct more focused reviews on retail banks’ front office in relation to the distribution of banking, investment and insurance products.

Fintech / Regtech

HK Banks See Fintech More As Opportunity Than Threat – Study

By Editors | 20/05/2020

Over the next ten years, banks expect to continue to play a key role in fintech innovation and adoption, and are confident they will not be displaced by new competitors.

Securities / Derivatives

Hong Kong: Securities Industry Subsidies to be Available from 25 May

By Editors | 20/05/2020

A cash subsidy of HK$50,000 will be available for securities firms ranked 15th onwards by market turnover, and HKD 2,000 for each individual licensed by the SFC.

Market Infrastructure

Clearstream, Euroclear Appoint First Chinese Bank as Common Depository

By Editors | 20/05/2020

As a common depository, CCB (Asia) will facilitate access to the international capital markets for Chinese issuers, and provide APAC investors easier access to the Eurobond market.

Enforcement

SFC Fines Convoy Asset Management Over Bond Sales

By Editors | 20/05/2020

The firm failed to comply with product due diligence requirements, client suitability obligations and specific guidance on the sale of fixed income products.

Securities / Derivatives

HSI Operator to Allow Dual Class Shares as Index Constituents

By Editors | 19/05/2020

WVR and secondary-listed companies from the Mainland will be eligible for including in the HSI and HSCEI. H-share companies with unlisted share capital will also be eligible.

Securities / Derivatives

HKMA, SFC to Jointly Review OTC Product Pricing at Intermediaries

By Manesh Samtani | 19/05/2020

The thematic review will assess the spreads intermediaries charge for non-exchange traded investment products such as bonds and structured products.