On 23 February 2021, the Hong Kong Securities and Futures Commission (the SFC) published its quarterly report1 for the period October to December 2020.
The main highlights include:
- Listing and takeovers – a total of 34 new listing applications (two from companies with WVR structures and four from pre-revenue biotech companies) were vetted by the SFC; and a total of 122 takeovers and share buy-back transactions took place in Q4 2020;
- Regulatory Enhancements – five consultation papers and two consultation conclusions were published;
- Market Enhancements – the SFC approved the Hang Seng TECH Index futures and options contracts; and the SFC approved the launch of futures and options contracts for four stocks;
- Licensing – the SFC received 1,333 licence applications and 4,653 applications to conduct new regulated activities; the SFC granted the first licence to a virtual asset trading platform in Hong Kong in December 2020; and, as at the end of Q4 2020, there were 52 automated trading services (ATS) providers authorised under Part III of the SFO and 24 corporations, including 13 dark pool operators, licensed under Part V of the SFO to provide ATS;
- Enforcement – the SFC disciplined three licensed corporations and three individuals, with fines totaling HK$2.72 billion; and the SFC publicly censured and imposed cold shoulder orders on two individuals for breaches of the Takeovers Code;
- Products – the SFC authorised 51 unit trusts and mutual funds and 18 unlisted investment products for public offering in Hong Kong; 50 Mainland funds and 29 Hong Kong funds were authorised under the HK-Mainland Mutual Recognition of Funds (MRF); and the SFC entered into an MRF arrangement with the Securities and Exchange Commission of Thailand;
- Green and Sustainable Finance – the Cross-Agency Steering Group published its Strategic Plan and the SFC and HKMA became members of the European Commission’s International Platform on Sustainable Finance; and
- Cross-boundary Investment – the SFC entered into a MoU with the Mainland and Macao regulators on the Cross-boundary Wealth Management Connect Pilot Scheme; and more stocks became eligible for the Stock Connect scheme, including shares of Ch.18A listed biotech companies and eligible A-shares listed on the Shanghai Stock Exchange (the SSE) Sci-Tech Innovation Board.
