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

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

On regulatory developments, the SFC:

set up a dedicated Corporate Regulation team to take on broader, more proactive oversight of listed companies as a statutory regulator under the Securities and Futures Ordinance;
approved OTC Clearing Hong Kong Limited’s application to be a recognised over-the-counter (OTC) derivatives clearing house;
approved Hong Kong Exchanges and Clearing Limited’s rule amendments to introduce a block trading facility in the after-hours futures trading session;
continued to provide technical support to the Government in developing a legal and regulatory framework for open-ended fund companies in Hong Kong;
led the Financial Stability Board Regional Consultative Group for Asia in finalising a Report on Shadow Banking in Asia; and
signed a memorandum of understanding for closer co-operation with the Financial Regulatory Commission of Mongolia.

On enforcement, the SFC:

successfully prosecuted three individuals for market misconduct and disciplined eight licensees, with fines totalling over $5.3 million;
obtained restoration orders from the court against Tiger Asia Management LLC (Note 1) and Du Jun (Note 2) over their insider dealings;
alleged that Qunxing Paper Holdings Company Limited’s IPO prospectus and results announcements contained materially false or misleading information, resulting in the court issuing an interim order to freeze the company’s assets of up to $1,968 million; and
reached disciplinary resolutions with HSBC Securities Brokers (Asia) Limited (Note 3) and The Royal Bank of Scotland N.V. (Note 4).

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

Notes:

For details, please see the SFC’s previous press release on 20 Dec 2013.
Refer to the SFC’s previous press release on 14 Jan 2014.
Refer to the SFC’s previous press release on 19 Dec 2013.
See the SFC’s previous press releases on 18 Jul 2013 and 4 Dec 2013.