Hong Kong's Securities And Futures Commission Issues Second-Quarter Report

In its Quarterly Report published today, the Securities and Futures Commission (SFC) summarises key regulatory work in the reporting period from July to September 2013.

On regulatory reforms, the SFC:

issued a joint policy statement with The Stock Exchange of Hong Kong Limited (SEHK) regarding the listing of overseas companies;
approved amendments to the Listing Rules of SEHK concerning the requirements of the new initial public offering sponsors regime;
jointly with the Hong Kong Monetary Authority published the supplemental consultation conclusions on the proposed over-the-counter derivatives regime; and
released Guidelines on the Application of the CPSS-IOSCO Principles for Financial Market Infrastructures for recognised clearing houses (Note 1).

On enforcement, the SFC:

successfully prosecuted three individuals and two corporations for market misconduct and disciplined 12 licensees, with fines totalling over $4.5 million;
presented a petition to the court to wind up China Metal Recycling (Holdings) Limited under section 212 of the Securities and Futures Ordinance (Note 2);
directly instituted proceedings in the Market Misconduct Tribunal against Tiger Asia Management LLC and three of its officers over their dealings in the securities of two listed companies; and
commenced legal proceedings to disqualify three former senior executives of China Best Group Holding Limited over their alleged breach of duties as directors in handling a proposed acquisition.

The report is available under "Published resources> Corporate publications> Quarterly reports" of theSFC website.

Notes:

CPSS refers to the Committee on Payment and Settlement Systems and IOSCO stands for the International Organization of Securities Commissions.
Generally, section 212 of the Securities and Futures Ordinance permits the SFC to apply to the Court of First Instance under the Companies Ordinance for the winding up of a corporation on just and equitable ground if the SFC considers that it is in the public interest that the corporation be wound up.