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Hong Kong SFC Report 2022/2023: 48,294 Licensees & Registrants, 2,939 Investment Funds, $132 Billion Funds Subscription, $16 Trillion Securities Transactions with 4.65 Million Clients, 2,998 Complaints & 1,600 Fraud Victims

1st July 2023 | Hong Kong

The Hong Kong Securities & Futures Commission (SFC) has released the Hong Kong SFC Report 2022/2023, proving key insights into Hong Kong financial industry.  In 2022/2023 (31/3/23), there are a total of 48,294 licensees & registrants (Licensed individuals 44,928, Licensed corporations 3,245, Responsible Officers 9,484), 2,939 authorized investment funds (schemes), and $132.4 billion of new fund subscriptions (funds domciled in Hong Kong).  The fund subscriptions are Bonds $9.9 billion, Equity $13.6 billion, Mixed $7.3 billion, Money market $33.2 billion, Feeder funds $3 billion, Index $65.4 billion, Others (Eg. virtual asset futures ETFs) $78 million.   There are 1,439 securities dealers & securities margin financiers, 4.65 million securities active clients, and transacted $16 trillion (HKD 126 trillion) of securities.  The Hong Kong stocks by sector (Market Capitalization, 31/12/22) are Information technology 26%, Consumer-related 20%, Financials 19%, Properties and construction 10%, Others 25%.  In 2022/2023, Hong Kong SFC received 25,989 applications to conduct new regulated activity, 7,384 for SFC licences, 180 IPO listings applications, and 91 new IPO.  In 2022/2023, Hong Kong SFC received 2,998 complaints, with the top 5 complaints – Conduct of licensees 712, Listing-related matters & disclosure of interests 669, (market manipulation, insider dealing) 344, Scams & frauds  (eg. identity fraud, impersonation) 341, Unlicensed activities 339.  The top 5 fines are Rifa Futures $1.1 million (HKD 9 million), RBC Investment Services $982,000 (HKD 7.7 million), Jinrui Futures $612,000 (HKD 4.8 million), China Everbright Securities $484,000 (HKD 3.8 million), CES Capital International $408,000 (HKD 3.2 million).  There were 226 on-site inspections in 2022/2023, with the top 5 breaches during on-site review – Internal control weaknesses 430, Breach of Code of Conduct 243, Non-compliance with anti-money laundering guidelines 214, Failure to safekeep client money 26, Failure to safekeep client securities 27.  And in 2022/2023, there are a total of reported 1,600 fraud victims.  See below for key findings & summary | View report here

“ 48,294 Licensees & Registrants, 2,939 Investment Funds, $132 Billion Funds Subscription, $16 Trillion Securities Transactions with 4.65 Million Clients, 2,998 Complaints & 1,600 Fraud Victims “

 



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The Hong Kong Securities & Futures Commission (SFC) is an independent statutory body set up in 1989 to regulate Hong Kong’s securities and futures markets.  As a financial regulator in one of the world’s leading international financial centres, the SFC strives to strengthen and protect the integrity, orderliness and competitiveness of the securities and futures markets in Hong Kong for the benefit of the industry, investing public and Hong Kong’s society as a whole. 

Tim Lui, Hong Kong SFC Chairman: “We are committed to strengthening market resilience and integrity and expanding the breadth and depth of our financial markets as a premier gateway to Mainland China. This means deepening mutual market access with the Mainland and ensuring our financial industry and infrastructure are well prepared for any challenges which may arise.”

Julia Leung, Hong Kong SFC CEO: “We strive to promote sustainable and responsible development of our financial markets whilst safeguarding investor interests and managing market risks through our robust regulation, vigilant supervision and resolute enforcement action. This will support Hong Kong’s long-term, sustainable market growth which is integral to its continued success as a leading global financial centre connecting China and the rest of the world.”

 

 

Hong Kong SFC Report 2022/2023

Hong Kong, Asia’s leading financial centre

The Hong Kong Securities & Futures Commission (SFC) has released the Hong Kong SFC Report 2022/2023, proving key insights into Hong Kong financial industry. 

Hong Kong SFC Report 2022/2023

Summary – Financial Industry:

  1. Hong Kong SFC Strategic Priorities – Listings, Intermediaries, Asset & Wealth management, Markets, Enforcement, Sustainable finance, Communications, Technology, Regulatory Cooperation
  2. Licensees & registrants – 48,294
  3. Licensed individuals – 44,928
  4. Licensed corporations – 3,245
  5. Responsible Officers – 9,484
  6. Total authorized investment funds (schemes) – 2,939
  7. No. of funds in Hong Kong – Hong Kong domciled funds 913, Non-Hong Kong domciled funds 1,417, ILAS 305, Pooled retirement funds 32, MPF schemes 26, MPF pooled investment funds 221, Authorised unlisted structured investment products 231, Open-ended fund companies (OFCs) 131
  8. Funds Subscriptions (unit trusts & mutual funds domiciled HK) – Bonds $9.9 billion, Equity $13.6 billion, Mixed $7.3 billion, Money market $33.2 billion, Feeder funds $3 billion, Index $65.4 billion, Others (Eg. virtual asset futures ETFs) $78 million
  9. Total value of fund subscriptions – $132.4 billion
  10. Securities dealers & securities margin financiers – 1,439
  11. Securities Active clients – 4.65 million
  12. Total value of securities transactions – $16 trillion (HKD 126 trillion)
  13. Total securities commission income – $2.55 billion (HKD 20 billion)
  14. Hong Kong Stocks by Sector (Market Capitalization, 31/12/22) – Information technology 26%, Consumer-related 20%, Financials 19%, Properties and construction 10%, Others 25%
  15. Southbound net inflow since launch (2014) – $318 billion (RMB 2.3 trillion)
  16. Northbound net inflow since launch (2014) – $262 billion (RMB 1.9 trillion)
  17. Online clients investing in equities markets – Hong Kong 53%, United States 39%, Mainland China 7%, Others 1%
  18. Online clients investing in futures & options markets – United States 74%, Hong Kong 24%, Others 2%
  19. Applications to conduct new regulated activity – 25,989
  20. Applications for SFC licences – 7,384
  21. New IPO listings applications – 180
  22. New IPO – 91
  23. Takeovers applications reviewed – 305
  24. Privatisations – 11

Summary – SFC Enforcement:

  1. No. of investigations – 13
  2. Fines on licensees – $5.3 million (HKD 41.7 million)
  3. Civil proceedings against individuals & companies – 180
  4. Disciplinary actions – 31
  5. Criminal charges – 115
  6. Cases with search warrants executed – 35
  7. Compliance advice letters issued – 113
  8. Complaints filed against intermediaries & market activities – 2,998
  9. Top 5 Complaints – Conduct of licensees 712, Listing-related matters & disclosure of interests 669, Market misconduct (market manipulation, insider dealing) 344, Scams & frauds  (eg. identity fraud, impersonation) 341, Unlicensed activities 339
  10. Investigations Breakdown – Intermediary misconduct 145, Market manipulation 87, Corporate mis-governance 85, Corporate disclosure 42, Unlicensed activities 37, Insider dealing 20
  11. No. of Fraud investment Victims – 1,600
  12. Funds frozen for compensation (fraud) – $3.3 million (HKD 26 million)
  13. Top 5 Fines – Rifa Futures $1.1 million (HKD 9 million), RBC Investment Services $982,000 (HKD 7.7 million), Jinrui Futures $612,000 (HKD 4.8 million), China Everbright Securities $484,000 (HKD 3.8 million), CES Capital International $408,000 (HKD 3.2 million)
  14. No. of on-site inspections in 2022/2023 – 226
  15. Top 5 breaches during on-site review – Internal control weaknesses 430, Breach of Code of Conduct 243, Non-compliance with anti-money laundering guidelines 214, Failure to safekeep client money 26, Failure to safekeep client securities 27

 

Hong Kong SFC Report 2022/2023

1) Hong Kong Financial Industry:

Licensees 

  • Stock exchange participants – 13,992
  • Futures exchange participants – 971
  • Stock exchange & futures exchange participants – 6,020
  • Non-stock/non-futures exchange participants – 27,199
  • Total Licensees – 48,182^

^ exclude 112 registered institutions 

Licensees 

  • Corporations – 3,254
  • Representatives – 35,444
  • Responsible Officers – 9,484
  • Total Licensees – 48,182^

^ exclude 112 registered institutions 

Authorised Collective Investment Schemes (CIS):

  • Unit trusts & mutual funds (Hong Kong-domiciled) – 913
  • Unit trusts & mutual funds (non-Hong Kong-domiciled) – 1,417
  • ILAS – 305
  • Pooled retirement funds – 32
  • MPF schemes – 26
  • MPF pooled investment funds – 221
  • Others^ – 25
  • Total – 2,939  

^ Comprising 14 paper gold schemes and 11 real estate investment trusts (REITs). 

Funds & Products:

  • Authorised unlisted structured investment products – 231
  • Open-ended fund companies (OFCs) – 131
  • New authorised funds – 175
  • New open-ended fund companies – 69

Subscription – Authorised unit trusts & mutual funds domiciled in Hong Kong:

  • Bonds – $9.9 billion
  • Equity – $13.6 billion
  • Mixed – $7.3 billion
  • Money market – $33.2 billion
  • Feeder funds – $3 billion
  • Index – $65.4 billion
  • Others (Eg. virtual asset futures ETFs) – $78 million
  • Total value of fund subscriptions – $132.4 billion

Hong Kong Securities Industries:

  • Securities dealers & securities margin financiers – 1,439
  • Active clients – 4.65 million
  • Total value of transactions – $16 trillion (HKD 126 trillion)
  • Total securities commission income – $2.55 billion (HKD 20 billion)

Hong Kong Stocks by Sector (Market Capitalization, 31/12/22):

  • Information technology – 26%
  • Consumer-related – 20%
  • Financials – 19%
  • Properties and construction – 10%
  • Others – 25%

Applications:

  • Applications to conduct new regulated activity – 25,989
  • Applications for SFC licences – 7,384
  • New listing applications – 180

New listing / IPO applications:

  • Listing applications received – 180
  • Listing applications lapsed/withdrawn/rejected during the year – 160
  • Listing applications returned – None
  • New listings – 91

Takeovers activities:

  • General and partial offers under Code on Takeovers and Mergers – 33
  • Privatisations – 11
  • Whitewash waiver applications – 22
  • Other applications under Code on Takeovers and Mergers – 231
  • Off-market and general offer share buy-backs – 7
  • Other applications under Code on Share Buy-backs – 1

Total Takeovers activities – 305

Stock Connect (Launched in 2014):

  • Southbound net inflow since launch – $318 billion (RMB 2.3 trillion)
  • Northbound net inflow since launch – $262 billion (RMB 1.9 trillion)

ETF Connect – Southbound trading (ETFs listed in Hong Kong):

  • Number of eligible ETFs – 5
  • Average daily turnover since launch – $153 million (HKD 1.2 billion)
  • Share in the combined trading of these ETFs – 11.6%
  • Accumulated turnover since launch – $26 billion (HKD $206.4 billion)

ETF Connect – Northbound trading (ETFs listed on Mainland):

  • Number of eligible ETFs – 98
  • Average daily turnover since launch – $13.8 million (RMB 0.1 billion)
  • Share in the combined trading of these ETFs – 0.5%
  • Accumulated turnover since launch  – $2.9 billion (RMB 21 billion)

Authorised RMB investment products 

Unlisted products:

  • Unlisted funds primarily investing in onshore Mainland securities markets or offshore RMB bonds, fixed income instruments or other securities – 61
  • Unlisted funds (non-RMB denominated) with RMB share classes – 388
  • Paper gold schemes with RMB features – 1
  • Recognised Mainland funds under Mainland-Hong Kong MRF arrangement – 47
  • Unlisted structured investment products issued in RMB – 230

Listed products:

  • ETFs primarily investing in onshore Mainland securities markets or offshore RMB bonds, fixed income instruments or other securities – 52
  • ETFs (non-RMB denominated) with RMB trading counters and/or RMB share classes – 15
  • RMB L&I products – 3
  • RMB gold ETF – 1
  • RMB REITs – 1

Online brokerage, distribution and advisory services:

  • New accounts were mainly opened online using non-face-to-face approaches. 
  • Most commonly-offered products are exchange-traded products such as equities, exchange-traded funds and futures and options contracts. 
  • Online brokers also offered CIS (including money market funds for cash management purposes) and robo-advisory services. 
  • Hong Kong, Mainland China and the US are the major equities markets accessed through online platforms by clients of the surveyed firms. The major futures and options markets are those in the US and Hong Kong. 
  • Some firms invested heavily in their online platforms to enable technical stock analyses and facilitate investors’ own market research in a self-directed environment.
  • Use of popular social media platforms for marketing and communication purposes.
  • Platforms which achieved economies of scale charged lower commission fees. 

Online clients investing in equities markets:

  • Hong Kong – 53%
  • United States – 39%
  • Mainland China – 7%
  • Others – 1%

Online clients investing in futures & options markets:

  • United States – 74%
  • Hong Kong – 24%
  • Others – 2%

 

2) Enforcements

Enforcement:

  • No. of investigations – 13
  • Fines on licensees – $5.3 million (HKD 41.7 million)
  • Civil proceedings against individuals & companies – 180
  • Trading & account records requested – 5,851
  • Disciplinary actions – 31
  • Criminal charges – 115
  • Cases with search warrants executed – 35
  • Compliance advice letters issued – 113
  • Complaints filed against intermediaries & market activities – 2,998
  • On-site inspections of licensed entities – 226

Investigations Breakdown:

  • Intermediary misconduct – 145
  • Market manipulation – 87
  • Corporate mis-governance – 85
  • Corporate disclosure – 42
  • Unlicensed activities – 37
  • Insider dealing – 20

Persons/corporations subject to enforcement action:

  • Prosecutions – 23
  • Civil proceedings – 197
  • Disciplinary proceedings – 47
  • Market Misconduct Tribunal proceedings – 13

Complaints against intermediaries & market activities:

  • 2018/2019 – 6,034
  • 2019/2020 – 4,491
  • 2020/2021 – 6,384
  • 2021/2022 – 4,041
  • 2022/2023 – 2,998

Investor Compensation Company (SFC):

  • Claims against the Investor Compensation Fund – 9 Claims
  • Paid from Investor Compensation Fund – 7 Claims
  • Net Asset Value Unified Exchange Compensation Fund – $11 million (HKD 85.8 million)
  • Net Asset Value Investor Compensation Fund – $319 million (HKD 2.5 billion)
  • Total Asset Value – $331 million (HKD 2.6 billion)

Fraudulent investment schemes:

  • Victims – 1,600
  • Funds frozen for compensation – $3.3 million (HKD 26 million)

Complaints against intermediaries & market activities:

  1. Conduct of licensees – 712
  2. Listing-related matters and disclosure of interests – 669
  3. Market misconduct (market manipulation, insider dealing) – 344
  4. Scams and frauds  (eg. identity fraud, impersonation) – 341
  5. Unlicensed activities – 339
  6. Boiler rooms and suspicious websites – 258
  7. Other financial activities not regulated by SFC (eg. bullion trading, banking services) – 253
  8. Conduct of registered institutions – 36
  9. Breach of offers of investments – 34
  10. Product disclosure – 12

Total – 2,998

 

3) Regulatory Actions: Fines, Suspension 

AML/CFT-related breaches:

  • Rifa Futures – HKD 9 million fine, suspend Tang Kai Shing for 8 months
  • Jinrui Futures – HKD 4.8 million fine, ban Shen Chun for 6 months, suspend Jiang Xiaoqing for 5 months
  • China Everbright Securities – HKD 3.8 million fine
  • City International Futures – HKD 100,000 fine

 

Mishandling client assets:

  • Guosen Securities – HKD 2.8 million fine
  • RBC Investment Services – HKD 7.7 million fine
  • Ho Pak Hay – Ban for life

Sponsor failures:

  • TC Capital International – HKD 3 million fine
  • Wu Wen Guang Edward – Suspend 7 months

Regulatory breaches and criminal convictions:

  • Philip John Shaw – Ban for 10 years
  • Wong Kwun Shing – Ban for life
  • Chan Wai Chun – Ban for life
  • Swiss-Asia Asset Management – HKD 3 million fine
  • Asia Research & Capital Management – HKD 1.75 million fine
  • KTF Capital Management – HKD 400,000 fine
  • Lam Ki Fung – Ban for 3 years
  • CES Capital International – HKD 3.2 million fine
  • Poon Choi Yung – Ban for 20 months

Selected notable cases:

  • Hong Kong Wan Kiu Investment Company, Sham Khi Rose Connie, Sham & Partners – compensate Wan Kiu clients for misappropriating their assets 
  • Dismissed a judicial review application brought against the SFC by Tam Sze Leung, Kong Chan and Lee Ka Lo and a second brought by Chen Wencan and Su Jiaqi, both of which sought to challenge restriction notices we issued to freeze their assets in various trading accounts held with certain licensed corporations. 
  • Sentenced Wong King Hoi to a 2-week imprisonment following his conviction of obstructing the SFC in the execution of a search warrant 
  • Convicted Chan Siu Tai and her sister Janice Chan of illegal short selling in the securities of 7 Hong Kong-listed companies, fined them HKD 114,000 and ordered them to pay the SFC’s investigation costs 
  • Convicted Lau Chi Ho of illegal short selling in the securities of two Hong Kong-listed companies, fined him HKD 20,000 and ordered him to pay the SFC’s investigation costs. 
  • Reprimand and fine Cardinalasia Consulting Limited HKD 1.5 million for failures in acting as a principal investment adviser to five private funds. 
  • Cardinalasia Consulting owner Edward Lee Shiu Lun suspended for 9 months 
  • Suspended Christopher James Aarons, responsible officer and chief executive officer of Trafalgar Capital Management (HK) Ltd., for two years for breaches 
  • Reprimand and fine I-Access Investors Limited HKD 600,000 for breach 

On-site Review:

  • No. of inspections in last 3 years – 792
  • No. of inspections in 2022/2023 – 226

Breaches during on-site review:

  1. Internal control weaknesses – 430
  2. Breach of Code of Conduct – 243
  3. Non-compliance with anti-money laundering guidelines – 214
  4. Failure to safekeep client money – 26
  5. Failure to safekeep client securities – 27
  6. Others – 290

Total breaches – 1,230

 

4) Hong Kong SFC Review

Hong Kong SFC Strategic Priorities:

  • Listings – Supporting the growth of a healthy market 
  • Intermediaries – Vigilant supervision to protect investors’ interests 
  • Asset & wealth management – An expanding and diversifying hub 
  • Markets – Getting more connected 
  • Enforcement – Standing resolute against misdeeds 
  • Sustainable finance – A regional and international centre 
  • Communications – Broad-based channels for effective communications 
  • Technology – Digitalisation promotes a greener market 
  • Regulatory cooperation – In the age of globalisation 

Regulatory enhancements:

  • Investor identification regime – Launched investor identification regime for Hong Kong securities market (20/3/23)
  • Virtual assets – Regulatory requirements for virtual asset trading platforms 
  • Uncertificated securities market – Consultation on the subsidiary legislation for the implementation of an uncertificated securities market in Hong Kong 
  • Depositaries of SFC-authorised funds – Proposed amendments to subsidiary legislation, SFC codes & guidelines to implement Type 13 regulated activity to regulate depositaries of SFC- authorised collective investment schemes 
  • Enforcement powers – Proposals to amend the Securities & Futures Ordinance (SFO) to facilitate more effective enforcement action 
  • Dealing in futures contracts – Consultation on the proposed risk management guidelines for licensed persons dealing in futures contracts 
  • Position limits – consultation on proposed changes to the position limits regime for listed futures and options contracts 
  • OTC derivatives – proposed changes to the types of transactions subject to clearing obligations under the Clearing Rules for over-the-counter (OTC) derivatives 

Market development:

  • Specialist technology companies – new regime to facilitate the listing of specialist technology companies which may have limited or no revenue or profit track record took effect on 31 March 2023 
  • Mainland-Hong Kong mutual recognition of funds (MRF) scheme – 47 Mainland funds authorised by the SFC and 37 Hong Kong funds were approved by the China Securities Regulatory Commission (CSRC) (31/3/23) and aggregate net subscription around RMB15.7 billion 
  • Stock Connect – Stock Connect covered 2,526 Mainland stocks and 561 Hong Kong stocks, representing about 86% of the two markets’ combined market capitalisation (31/3/23).  Stock Connect were expanded on 13 March 2023 to include eg. foreign companies primary-listed in Hong Kong that meet relevant criteria for southbound trading.  Enhancements to the trading calendars for both northbound and southbound trading (24/3/23).  Trading of exchange-traded funds (ETFs) under Mainland-Hong Kong Stock Connect commenced on 4 July 2022, with five Hong Kong ETFs eligible for southbound trading and 98 Mainland ETFs eligible for northbound trading (31/3/23).
  • Bond Connect – Northbound primary service for global investors participate in the cross-border subscription of new bond issuances in the China Interbank Bond Market.
  • Swap Connect – Northbound access at the initial stage (15/5/23)
  • Hong Kong domiciled retail funds – Hong Kong-domiciled public funds recorded AUM $174.5 billion (31/3/23), net fund inflows around $7.9 billion.
  • Hong Kong-listed ETFs – Authorised 3 virtual asset futures ETFs and the first green bond ETF in Hong Kong 
  • Asset & Wealth Management Survey – AUM $4.5 trillion (HKD 35.5 trillion, 31/12/23), Net fund inflows in 2021 $274 billion (HKD 2.1 trillion), AUM of asset management & fund advisory business at $3.3 trillion (25.8 trillion)
  • Licensing – Quick reference guides for family offices, private equity firms, hedge fund managers and overseas and Mainland practitioners.  Paperless licensing process, with the online submission of corporate licence applications, notifications and regulatory filings via fully- digitalised licensing platform (WINGS4, Mandatory April 2022).

Supervision:

  • Listing applications – 355 listing applications, 180 new listing applications, 19 pre-profit biotech companies, 5 SPAC (Special purpose acquisition companies)
  • Takeovers – Reviewed 305 takeovers-related transactions and applications 
  • Corporate conduct – To preventing corporate misconduct, issued section 1796 directions to gather information in 43 cases, issued letters to listed companies in 2 cases 
  • Inspections – Conducted 226 on-site inspections of licensed entities to review compliance with regulatory requirements, 1,230 breaches
  • Book-building & placing activities – Provided guidance to intermediaries on application of new requirements (effective August 2022 eg. requirements for orders placed on an omnibus basis), clarifications related to debt offerings, and transitional arrangements 
  • Online financial services – Issued a circular with report on review of licensed corporations providing online brokerage, distribution & advisory services.  Remind of regulatory expectations for business activities online 
  • Data Standards for Order Life Cycles (DS-OL) – Published thematic review of DS-OL 
  • Non-exchange traded investment products – Published SFC-HKMA annual survey on the sale of non-exchange traded investment products in 2021, 5% year-on-year increase in both the number of firms engaged in the sale of investment products and the number of investors who purchased them 
  • Virtual assets – Issued statement to alert investors about the risks associated with virtual asset platforms offering virtual asset “deposits”, “savings”, “earnings” or “staking” services, Reminded industry of the potential legal requirements when offering these arrangements to investors in Hong Kong, Warned investors of risks associated with non-fungible tokens, Reminded industry that these tokens may be subject to regulation if they cross the boundary between a collectible and
    a financial asset 
  • Risk management – Issued 2 circulars and a report on review of licensed corporations’ management of the operational & remote booking risks of trading activities, data risks, and expected standards for risk management practices 

Enforcement:

  • Surveillance – More than 5,851 requests for trading & account records from intermediaries, arising from surveillance of untoward price and turnover movements 
  • Investigations and prosecutions – 135 investigations, 115 criminal charges against 25 persons (14 individuals charged for suspected market misconduct & money laundering offences for indictment prosecution), 5 secured convictions
  • Notable disciplinary actions – Reprimanded and fined Rifa Futures HKD 9 million for failures in complying with know-your-client, anti-money laundering & counter-terrorist financing and other regulatory requirements, Reprimanded and fined RBC Investment Services (Asia) HKD 7.7 million for failing to segregate client money and transferring client securities without clients’ standing authority 
  • Joint law enforcement operations – Conducted 2 joint operations with the Independent Commission Against Corruption (ICAC) concerning suspected ramp & dump schemes on 6 Hong Kong-listed companies, market misconduct and suspected corruption offences, Conducted joint operation with Hong Kong Police Force on suspected bogus transactions involving a company formerly listed on SEHK 

Sustainability:

  • New agenda – Published Agenda for Green & Sustainable Finance to support Hong Kong’s role as an international sustainable finance centre, focusing on corporate disclosures, asset management and environmental, social and governance (ESG) funds, and carbon markets 
  • Cross-Agency Steering Group – The Steering Group’s new website outlines 2023-2025 priorities and promotes Hong Kong’s strengths as the world’s sustainable finance hub 
  • Asset managers – New requirements for fund managers to consider climate-related risks in their governance, investment and risk management processes and make related disclosures (effective November 2022)
  • Talent development – Commenced Sustainable Finance Internship Programme to help nurture sustainable finance professionals and organised a training session for more than 100 university students 

Hong Kong SFC Sustainability Initiatives

  • 2018 – Published the Strategic Framework for Green Finance
  • 2020 – Initiated the Green and Sustainable Finance Cross-Agency Steering Group
  • 2022 – Published the Agenda for Green and Sustainable Finance
  • 2023 – Announced our commitment to become a carbon neutral organisation before 2050

Regulatory engagement:

Mainland – Hong Kong SFC Chairman Tim Lui and CEO Julia Leung met with CSRC Chairman Yi Huiman to discuss cooperation between the Mainland and Hong Kong capital markets and how to promote coordinated market development, Tim Lui and Julia Leung met with the People’s Bank of China’s Governor Yi Gang to exchange views on a range of issues including financial cooperation between the Mainland and Hong Kong and renminbi internationalisation, Held the 11th & 12th SFC-CSRC high-level meetings to discuss cross-boundary regulatory issues and market development initiatives, Signed memorandum of understanding (MoU) with the CSRC with respect to the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies issued by the CSRC, Held the 13th high-level meeting on enforcement cooperation to enhance cross-boundary supervisory and enforcement collaboration 

International:

  • Reached an MoU with the Bank of England regarding mutual assistance in the supervision and oversight of cross-border regulated entities 
  • Co-hosted the Asia Pacific Takeovers Regulators Conference with the Securities Commission Malaysia for participants from 11 jurisdictions to discuss recent developments and experience in regulating takeovers activities, Became a signatory of the IOSCO11 Asia-Pacific Regional Committee’s Multilateral MoU for Supervisory Cooperation 
  • Responded to 118 requests for information and bilateral meetings from overseas regulators and industry bodies 

Outreach:

  • Compliance Forum – Hosted the SFC Compliance Forum 2022 for senior market participants to discuss the future of Hong Kong as an international financial centre and other topical issues 
  • Industry outreach – Organised webinars, virtual training and meetings for industry participants on various topics including new digitalised licensing functions, the enhanced competency framework and the regulation of virtual asset-related activities 
  • Publicity campaign – Launched a multi-media publicity campaign to help the public understand the new investor identification regime through videos, posters, radio announcements and social media 
  • Community outreach – Organised a community outreach event with the Hong Kong Police Force’s Anti-Deception Coordination Centre to raise public awareness about online ramp and dump scams 
  • Social media – Introduced our official WeChat account which features updates on topics of interest to Mainland- oriented investors and industry professionals 



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