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The Securities and Futures Commission (SFC) published its Annual Report 2014-15 today.
The report summarises the SFC’s work and details how it carries out its regulatory responsibilities in the context of rapidly evolving markets and greater capital market integration with the Mainland.
"The accelerated opening of the Mainland economy presents unprecedented opportunities which will help Hong Kong to strengthen its position as a leading international financial centre," said Mr Carlson Tong, the SFC's Chairman. "This will be a dominant theme in the years ahead, together with our other important connections with the global financial system."
The launch of the Shanghai-Hong Kong Stock Connect pilot programme, one of a series of initiatives integrating the Hong Kong and Mainland markets, was a milestone in Hong Kong’s development as a financial centre with significant implications for its future growth and positioning.
"Increasing capital market integration with the Mainland means that a large part of the SFC's work is now related to mainland China in one way or another," said Mr Ashley Alder, the SFC's Chief Executive Officer. "As always, it is vital that we continue to ensure high standards of investor protection and robust enforcement while remaining vigilant in monitoring financial stability and conduct risks."
In addition, the SFC is pressing ahead with regulatory enhancements which will promote the stability of the financial system, improve market quality and strengthen investor protection. These include establishing, with other regulators, a resolution regime for financial institutions in Hong Kong, introducing a new over-the-counter derivatives regime, implementing a paperless securities market and enhancing the regulation of the asset management industry.
Other highlights of the SFC's operations recounted in the report:
- Surveillance prompted 9,752 requests for trading and account records from intermediaries, up 71% year-on-year
- 201 enquiries raised with listed companies as result of monitoring company announcements
- 302 risk-based, on-site inspections of intermediaries
- The number of SFC-authorized collective investment schemes on offer to the public reached 2,622
An online version of the annual report is available on the SFC's website.
