SFC issues quarterly report

The Securities and Futures Commission of Hong Kong, SFC, has published its latest Quarterly Report covering the period from October through December 2022. The report provides some general statistical data e.g. on mutual fund registrations, licenses granted, or enforcement actions, and also summarizes industry developments and the Commission’s regulatory activities during the specified period. Some of the highlights are noted below:
- the coming into force of the investor identification regime on March 20, 2023 in the context of which the SFC has issued multiple circulars;
- the extension of Stock Connect with the expansion of Southbound trading to include eligible shares of international companies that are primary-listed in Hong Kong and Northbound trading to include constituent stocks of the Shanghai Stock Exchange A Share Index and the Shenzhen Stock Exchange Composite Index;
- the update of OTC derivative reporting templates to align them with international standards;
- the update to the current position limit regime to expand its application, e.g. to sub-funds and unit trusts, and to exempt additional derivatives such as the Hang Seng Index (HSI), Hang Seng China Enterprises Index (HSCEI), and Hang Seng TECH Index derivatives from position limits; or
- the launch of a new consultation on proposed guidelines as regards risk management practices of firms and individuals engaged in futures dealing activities following the identification of numerous deficiencies of future brokers and dealers, particularly in the areas of monitoring margin calls, observing client thresholds, and performing stress tests.
To find out more on the SFC’s most recent activities or on statistical data of interest, please consult the enclosed document (Link background) or follow above noted link.