Hong Kong Law

Hong Kong’s SFC reprimanded and fined Goldman Sachs US$350 million for serious regulatory failures that led to the misappropriation of US$2.6 billion in connection with the 1MBD bond transactions.

The HKEx published the consultation conclusions on the codification of general waivers and principles relating to IPOs and listed issuers in addition to other minor rule amendments.

On 18 September 2020, the SFC published a Consultation Paper on proposals to amend its Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (for Licensed Corporations).

Changes to Hong Kong’s private open-ended fund companies regime took effect on 11 September 2020 removing all investment restrictions on private OFCs and enabling Type 1 licensees to act as their custodians.

HKEx is consulting on Listing Rule amendments and extending its disciplinary and sanctioning powers under Chapter 2A of the Main Board Listing Rules and Chapter 3 of the GEM Listing Rules.

Amendments to HKEx’s Listing Rules for debt issues only to professional investors will take effect on 1 November 2020 revising the requirements under Chapter 37 of the Main Board Rules and GEM Chapter 30.

The Hang Seng TECH Index was launched on 27 July 2020 tracking the 30 largest HKEx-listed technology companies including Alibaba, Tencent Holdings, Xiaomi and Meituan Dianping.

HKEx is consulting on paperless listing and subscription, online document display and reducing the documents required to be displayed for notifiable/connected transactions. HKEX-GL86-16 is also updated.

Lack of a commercial rationale for listing was the principal reason for the rejection of 17 listing applications on grounds of lack of suitability for listing under Guidance Letter HKEX-GL68-13A in 2019

The Hong Kong Stock Exchange (HKEx) issued new and updated guidance letters in April 2020 to assist pre-revenue Biotech companies applying to list under Chapter 18A of the Main Board Listing Rules.