SFC Publishes Q2 2021 Report

Clinton Morrow

Partner, Charltons

On 17 August 2021, Hong Kong’s Securities and Futures Commission (the SFC) published its quarterly report1 for the period April to June 2021.

The main highlights include:

  • Listing and Takeovers – a total of 120 new listing applications (five from companies with weighted voting rights (WVR) structures and 14 from pre-revenue biotech companies) were vetted by the SFC; and a total of 110 takeovers and share buy-back transactions took place in Q2 2021;
  • Regulatory Enhancements – the SFC published its consultation conclusions on updates to the competency requirements for SFC-licensed and HKMA-registered individuals;
  • Licensing – the SFC received 1,563 licence applications and 5,570 applications to conduct new regulated activities. As at the end of Q2 2021, there were 51 automated trading services (ATS) providers authorised under Part III of the Securities and Futures Ordinance (the SFO) and 24 corporations, including 13 dark pool operators, licensed under Part V of the SFO to provide ATS;
  • Enforcement – the SFC disciplined four corporations and three individuals, with fines totalling HK$5 million;
  • Products – the SFC authorised 39 unit trusts and mutual funds and 24 unlisted investment products for public offering in Hong Kong; 48 Mainland funds and 38 Hong Kong funds were authorised under the Mainland-Hong Kong Mutual Recognition of Funds (MRF) scheme; and exchange-traded funds (ETFs) were cross-listed on the Stock Exchange of Hong Kong Limited (HKEX) and the Shanghai Stock Exchange for the first time in June 2021;
  • Green and Sustainable Finance – the Hong Kong Green and Sustainable Finance Cross-Agency Steering Group, which the SFC co-chairs, announced the next steps to advance its collaborative strategy to help transition the financial ecosystem towards carbon neutrality; and
  • Cross-boundary Investment – the SFC has been working with various institutions in Mainland China, Macao, and Hong Kong on the implementation of the Cross-boundary Wealth Management Connect Pilot Scheme.

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