Hong Kong Law

In July 2018, the Hong Kong Stock Exchange published its Consultation Conclusions on the Review of the Corporate Governance Code and Related Listing Rule to enhance corporate governance standards of issuers.

CCB International Capital Limited has been reprimanded and fined $24m by the SFC for its failure to discharge its duties as a sole sponsor in the listing application of Fujian Dongya Aquatic Products Co., Ltd

The HKEx published a guidance letter in July 2018 setting out relaxations from the Listing Rules which it may allow for listing applicants in the internet technology sector or that have internet-based business models.

HKEx published a Consultation Paper on Backdoor Listing, Continuing Listing Criteria and Other Rule Amendments containing proposals to tighten the Listing Rules on reverse takeovers and the criteria for continued listing

The introduction of the open-ended fund company structure is aimed at encouraging more funds to domicile in Hong Kong and to boost Hong Kong’s position as a full service international asset management centre.

The SFC published a Consultation on Proposed Enhancements to the Investor Compensation Regime and Related Legislative Amendments on 27 April 2018. The SFC is hoping to finalise the proposals by mid-2018.

The Listing Rule changes address concerns about prolonged trading suspensions and as detailed in the Exchange’s Consultation Conclusions on Delisting and other Rule Amendments, adopt the majority of proposals

The HKMA published its revised Guideline on Authorization of Virtual Banks intended to encourage virtual banking in Hong Kong. It is one of seven initiatives to move Hong Kong to a “new era of smart banking”.

The Hong Kong Stock Exchange released its Financial Statements Review Programme Report 2017 on 1 June 2018. The report sets out key findings on compliance with accounting standards and disclosure requirements.

On 9 May 2018, the HKMA issued a Circular on Credit Risk Management for Personal Lending Business, allowing AIs to adopt credit risk management techniques and practices enabled by technology

The amendments allow an individual’s share of a portfolio held in an account jointly owned by the individual with non-associates to be aggregated for the purposes of meeting the professional investor threshold

The Regulatory Bulletin gives details of the SFC’s exercise of its powers under the SMLR in order to fulfil its statutory obligation of investor protection in the nine months ended 31 Match 2018.