The Hong Kong Securities and Futures Commission (SFC) released its latest quarterly report yesterday (August 20, 2020). This report is the first quarterly report of the securities and Futures Commission for the financial year 2020-21. It covers the work of the SFC from April 1 to June 30, 2020. < / P > < p > the purpose of this consultation is to provide more flexibility for real estate funds in Hong Kong to make investments. < / P > < p > this Council, together with the Hong Kong Exchanges and Clearing Limited (HKEx) and the Federation of securities registration companies limited, issued a joint consultation summary on the proposed operation mode of the paperless securities market. < / P > < p > this Council issued a consultation summary on the scope of the fine-tuning OTC derivatives licensing system, with the aim of Exempting the corporate asset activities of non-financial groups and some portfolio compression services. The summary document also contains the competency requirements applicable to persons licensed under the system. During the quarter, we exercised our power under the securities and Futures (listing on the securities market) rules to issue 4 customs registration letters and 8 information request letters to 12 listing applicants. Our concerns include the accuracy and completeness of the information submitted by the applicant, legal and regulatory compliance issues, the lack of sufficient public interest in the business of the listing applicant, and the representativeness of the financial data in the prospectus. < p > < p > in reviewing the disclosure of listed companies, the SFC issued instructions in accordance with Article 179 on 18 cases to collect more information, and in writing on one transaction to elaborate the matters of concern of the SFC. The scope of the review includes the management of potential conflicts of interest by the Hong Kong Exchanges and Clearing Limited (HKEx), the communication between the listing department and the business departments of the Hong Kong Stock Exchange on pre IPO inquiries, the supervision of the listing department and the supervisory role of the listing committee. We have also examined the SEHK’s handling of the share option scheme 2 and complaints about listing applicants and issuers. The report identifies a number of areas where the stock exchange can make improvements to improve its performance.
in response to novel coronavirus outbreaks, the 2019 joint venture issued a joint statement with the stock exchange to provide guidance for listed companies to determine the timing and manner of shareholders’ meetings. As of June 30, the total number of licensed institutions, persons and registered institutions was 46824, including 3109 licensed institutions and 43603 licensed persons, a decrease of 343 places compared with the previous quarter. < / P > < p > the Council conducted 74 on-site inspections of licensed institutions to verify their compliance with relevant regulatory requirements. In response to the increased volatility in the market during the outbreak of the new crown outbreak, the Council has strengthened its supervision and stress testing to monitor the financial and operational impact of the licensed institutions. In addition, it has also issued FAQs explaining how the Council will flexibly implement certain regulatory requirements. < / P > < p > this Council has issued a circular to remind licensees to assess their operational capabilities and to implement appropriate measures to manage the network security risks associated with remote work arrangements. < p > < p > the SFC cautioned the brokerage firm that it should not open new crude oil futures contracts for clients who are unable to bear the potential losses, and reminded the SFC to remain vigilant in extreme market conditions. The report on leveraged foreign exchange trading activities of licensed institutions published by the SFC sets out the regulatory standards and good operating practices that the Commission expects to achieve on or before January 1, 2021. This Council has approved 41 unit trusts and mutual funds (including 28 funds incorporated in Hong Kong) and 24 unlisted structured investment products. < / P > < p > in order to provide investors with more short-term trading and hedging tools, the SFC has begun to accept applications for recognition of swap leverage and reverse products tracking mainland stock indexes. < / P > < p > this Council has approved the 33 MSCI index futures contracts proposed by the Hong Kong Stock Exchange in order to expand its derivatives portfolio and provide market participants with more trading and hedging instruments. This Council, together with the Hong Kong Monetary Authority, has jointly initiated the establishment of an inter Agency Steering Group on green and sustainable finance to coordinate climate and environmental risk management measures in the financial sector and to support the government’s climate strategy. < p > < p > this quarter, the Council recorded a revenue of 626 million yuan. The average daily turnover of the Hong Kong stock market in this quarter was $119 billion, a decrease of 6% from the previous quarter’s record of $126 billion. The Council’s levy income decreased slightly this quarter, while the net investment income increased significantly. Our expenditure was $521 million, down slightly from the previous quarter and a surplus of $105 million was recorded.