Hong Kong

Market Infrastructure

SFC to Assess Licensed Firms for FRTB Adoption Readiness

By Manesh Samtani | 06/08/2018

Pending an update from the Basel Committee on FRTB, the SFC will assess the readiness of LCs to adopt the internal models approach for market risk based on the Basel II.5 framework.

Capital / Liquidity

Hong Kong Bank Exposure Rules Compliance Pushed to Mid 2019

By Garima Chitkara | 30/07/2018

HKMA has extended the implementation deadline for its bank exposure limit rules to 1 July 2019 given the tight implementation deadline and concerns raised by the industry.

Market Infrastructure

Hong Kong’s Revised OFC Regime Goes Into Effect

By Garima Chitkara | 30/07/2018

Hong Kong’s new open-ended fund regime that will allow OFCs to be set up as corporates takes effect on 30 July.

Capital / Liquidity

HKMA Releases Loss-Absorbing Capacity Consultation Conclusions

By Garima Chitkara | 26/07/2018

HKMA had consulted on the minimum required capital needed by systemically important institutions in case they are rendered non-viable.

Enforcement

SFC Fines HSBC Unit $1.2mn on Bond Solicitations

By Mark Pufpaff | 23/07/2018

HSBC Broking Securities failed to conduct proper due diligence on bonds recommended to clients and to implement effective systems ensure suitability with client needs.

Securities / Derivatives

The Hong Kong-China Stock (Dis)Connect

By Peter Guy | 20/07/2018

The battle for large cap tech listings between HKEX and mainland exchanges ignited over Xiaomi this week, indicating that China’s strategic goal might be to prevent home-grown, multi-billion dollar “unicorn” companies from seeking listings on any overseas markets – including Hong Kong.

Enforcement

SFC Bans Former StanChart Securities Executive for Three Years

By Mark Pufpaff | 20/07/2018

Joseph Hsu Kay Hing failed to exercise appropriate care in his responsibilities as sponsor principal and responsible officer during the supervision of a 2009 listing application.

Market Infrastructure

HKMA Lays Out Regulatory Framework for Open API

By Garima Chitkara | 19/07/2018

The HKMA is set to launch an Open API on its website to make financial data more accessible to consumers and facilitate client onboarding by banks starting 23 July; the API will begin with providing 50 sets of financial data.

Securities / Derivatives

China Bourses Agree on Plan to Allow Trading in HK-Listed Dual Class Shares

By Manesh Samtani | 19/07/2018

HKEX, SSE, SZSE to set up joint working group to formulate supplementary rules for including dual class shares in Stock Connect southbound trading, following ‘special stability trading period’.