SFC issues quarterly report

6 Dec 2017



The Securities and Futures Commission (SFC) today published its Quarterly Report summarising key developments from July to September 2017.

Highlights of the report include the release of conclusions to a consultation on reducing hacking risks associated with internet trading and a consultation on the proposed regulatory capital regime for licensed corporations engaged in over-the-counter derivatives activities.

In September, the SFC and The Stock Exchange of Hong Kong Limited (SEHK) published conclusions to their joint consultation on proposed enhancements to SEHK’s decision-making and governance structure for listing regulation. The conclusions clarified the role of the SFC, which has evolved to increase its direct presence when dealing with the more crucial listing matters which fall within its remit. 

The launch of Bond Connect in July provided offshore institutional investors with access to the China Interbank Bond Market. In a September statement, the SFC explained that digital tokens offered or sold in an initial coin offering may be subject to the securities laws of Hong Kong. The Manager-In-Charge regime was fully implemented in October.

During the quarter, the SFC signed Memoranda of Understanding on France-Hong Kong mutual recognition of funds, the supervision of Hong Kong-UK cross-border regulatees and cooperation with the Hong Kong Police. Financial technology cooperation agreements were reached with the Dubai Financial Services Authority and the Securities Commission of Malaysia.

In enforcement, the Court of First Instance disqualified Hanergy Thin Film Power Group Limited’s former chairman for eight years and ordered him to procure the payment of outstanding receivables to the company, and in a separate case ordered Sun Min to pay over $15.6 million to investors affected by her insider dealing.

Key figures in the quarter:

  • The total number of licensees and registrants reached a record high of 43,976, up 3.3% year-on-year, while the number of licensed corporations increased 12.7% to a new high of 2,613.
  • A total of 80 risk-based on-site inspections of licensed corporations were conducted to review their compliance with regulatory requirements.
  • The SFC reviewed a record 110 new listing applications, up 27.9% from the previous quarter, and issued final decision notices to object to two listings.
  • The SFC made 2,300 requests for trading and account records from intermediaries following its surveillance of untoward price and turnover movements.

The report is available on the SFC website.

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Page last updated : 6 Dec 2017