SFC steps up oversight of corporate conduct

12 Dec 2013



The Securities and Futures Commission (SFC) will take a broader and more proactive approach in overseeing corporate conduct of listed companies, the SFC’s Chairman, Mr Carlson Tong said today.

"This will mean more surveillance, analysis and enforcement work,” Mr Tong told the audience at the 11th Anniversary Gala Dinner of the Chamber of Hong Kong Listed Companies.

Mr Tong said this approach stems from market concerns over cases of serious corporate misconduct in listed companies and how it can be detected at an early stage to reduce damage to the market and the investing public.

To this end, the SFC has set up a dedicated corporate regulation team to review company announcements, circulars and reports; conduct periodic in-depth reviews of each company and adopt risk-based criteria to focus on particular companies including those with history of losses or frequent restructuring.

"By actively detecting misconduct and following up on suspicious activities, we seek to maintain quality markets and high corporate governance standards so as to protect investors and enhance confidence in listed companies and our market,” Mr Tong said.

Mr Tong stressed that Hong Kong cannot afford to fall behind global corporate governance standards and best practices. "Companies benefit from better corporate governance which will in turn help Hong Kong sustain its position as a leading international financial centre,” he added. 

Mr Tong’s speech is available on the SFC’s website.

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Page last updated : 16 Dec 2013