Hong Kong

Market Infrastructure

SFC Fund Manager Code of Conduct – Five Steps to Compliance

By Derek McGibney | 17/07/2018

Investment management firms with operations in Hong Kong must turn their attention to the new SFC Fund Manager Code of Conduct, which comes into force in four months.

Securities / Derivatives

China Blocks Southbound Access to Dual-Class Stocks

By Manesh Samtani | 16/07/2018

Shanghai and Shenzhen bourses release joint statement barring domestic investors from trading in foreign companies, stapled securities and stocks with weighted voting rights structures listed in Hong Kong.

Enforcement

Citigroup unit Fined HK$4mn for Alternative Liquidity Pool Failures

By Garima Chitkara | 11/07/2018

SFC found that due to an incorrect system setting for client profiles, over 130 clients had accessed alternative liquidity pool Citi Match without being assessed whether they were qualified investors.

Enforcement

CCB Hong Kong Unit Fined for IPO Sponsor Failures

By Manesh Samtani | 10/07/2018

SFC has fined CCB International Capital HK$24mn for failing to conduct reasonable due diligence for seafood company Fujion Dongya Aquatics in its 2014 listing.

AML / KYC

SFC Updates AML/CFT Guideline as FATF Assessment Looms

By JP Reimann | 06/07/2018

Proposals include streamlining of customer onboarding processes and a requirement to implement group-wide AML/CFT systems at overseas branches and subsidiaries.

Market Infrastructure

Bond Connect to Get Regulatory Boost from PBOC

By Garima Chitkara | 05/07/2018

PBOC will introduce same day delivery versus payment, block trading and a simpler tax regime for foreign investors; ten additional market makers also added to Bond Connect scheme, including JP Morgan, BAML and Mizuho Bank.

Market Infrastructure

Hong Kong Updates Counterparty Credit Risk Management Framework

By Garima Chitkara | 05/07/2018

The HKMA has revised its counterparty credit risk management regulation to incorporate international regulations; expanding its supervisory coverage to include CVA and central clearing

Securities / Derivatives

SFC Imposes Enhanced Reporting Obligations on Authorised Funds

By Manesh Samtani | 04/07/2018

Enhanced reporting obligations to include data on liquidity profiles, subscription and redemption amounts, asset allocation, and securities financing/borrowing transactions.

Securities / Derivatives

Mainland Investors Gain Access to HK Stock Research

By Manesh Samtani | 04/07/2018

New rules enable better access to research reports and advice on HK-listed stocks, and opportunities for HK securities firms to distribute their research through mainland firms.