Hong Kong

AML / KYC

SEBI Seeks Details on UBOs of Chinese, Hong Kong FPIs

By Editors | 16/04/2020

Prompted by the PBOC raising its stake in HDFC to over 1%, SEBI is reportedly concerned that Indian companies may face takeover threats from Chinese investors.

Fintech / Regtech

‘Mox Bank’ Becomes Latest Virtual Bank to Launch HK Pilot

By Editors | 12/04/2020

‘Mox Bank’ – backed by Standard Chartered, PCCW, HKT and Trip.com – has become the third virtual bank to launch pilot services in Hong Kong.

Securities / Derivatives

SFC Raises Concerns with Leveraged Foreign Exchange Trading

By Editors | 10/04/2020

Brokers reported that more than 60% of clients who engage in leveraged foreign exchange trading made net trading losses, some in excess of HK$1mn.

Capital / Liquidity

HKMA Reduces AIs’ Regulatory Reserve Requirement

By Editors | 08/04/2020

The regulatory reserve release should be used to support customers impacted by Covid-19, and not to distribute dividends, buy back shares or pay bonuses.

Securities / Derivatives

Hong Kong to Implement Paperless Securities Market from 2022

By Editors | 08/04/2020

Submissions to a January 2019 consultation indicate strong support for the implementation of an uncertificated securities market in Hong Kong.

AML / KYC

HKMA Encourages Remote Onboarding to Manage Covid-19 Challenges

By Editors | 07/04/2020

AIs and SVF licensees are encouraged to continue the provide the public convenient account opening and access to banking and payment services.

Fintech / Regtech

In-Depth: Making Sense of Digital Bank Policy

By Jamie Lloyd Evans | 07/04/2020

Industry veteran Jamie Lloyd Evans takes a detailed look at digital banking regimes in Asia, and the stated – and unstated – motivations behind them.

Enforcement

SFC Fines HSBC Units for Cash Management Failures at Funds

By Editors | 07/04/2020

The identified concerns have all since been rectified, and the two units have agreed to pay over $430,000 into the affected funds, on top of a $451,000 fine from the SFC.

Capital / Liquidity

HKMA Sets Out Treatment of Loans Under 100% Guarantee Scheme

By Editors | 06/04/2020

IRB AIs should seek the HKMA’s exemption approval to apply the standardised approach for SME loans granted under the 100% Guarantee Scheme.