Third Hong Kong Securities And Futures Commission Regulatory Forum Discusses Hong Kong’s Competitiveness

The Securities and Futures Commission (SFC) today hosted the third SFC Regulatory Forum which focussed on initiatives to enhance the competitiveness of Hong Kong as a capital-raising centre amidst rapid technological innovation and increasing connectivity with the Mainland and other markets. The SFC organises the event biennially to promote dialogue with a wide range of stakeholders.

Mr Paul Chan Mo-po, Financial Secretary of the Hong Kong Special Administrative Region Government, delivered the keynote address. "The financial services industry, contributing almost 18% to our GDP, has long been the linchpin of the Hong Kong economy. The Government has launched a number of new initiatives in recent years to further promote the development of financial services and enhance Hong Kong's competitiveness as an international financial centre.

"At the same time, we are highly committed to protecting investors as well as our global reputation. We will continue to review our regulatory mechanisms in order to ensure the smooth and robust functioning of our financial system and markets, and the overall financial stability of Hong Kong," Mr Chan said.

"Today we took on some of the most pressing questions we face, such as what is the right regulatory response to increasing market connectivity and the best way for Hong Kong to deal with emerging challenges and risks," Mr Carlson Tong, the SFC's Chairman, said in his opening remarks.

The first of four panel discussions addressed ongoing reforms to listing regulation in Hong Kong in the context of the SFC’s front-loaded, real-time regulatory approach. It also examined Mainland and Hong Kong market integration, including the expansion of the Connect schemes and opportunities presented by the Belt and Road initiative.

"Our ability to ensure Hong Kong’s competitiveness as an international financial centre hinges on how we manage the risks we face," said Mr Ashley Alder, the SFC's Chief Executive Officer, during the first panel. "Effective regulation and reciprocal, balanced regulatory cooperation are vital to further market integration and expanding global investment flows."

Another panel considered the opportunities and challenges facing the asset management industry as Asia’s growing middle class and new financial technologies transform the investment landscape. In addition, the panel discussed the potential for Hong Kong to develop as the region’s premiere risk management centre and derivatives hub.

The role of regulation in changing corporate behaviour was the subject of a separate panel which looked closely at the evolution of the Hong Kong market over the past decade and considered the need for changes in listing regulation to deal with shell manufacturing, backdoor listings, dilutive rights issues and other corporate governance problems.

A final panel considered the SFC’s recent efforts to ensure firms’ compliance and deter corporate fraud and market misconduct. These include promoting senior management accountability, investigating initial public offering sponsor work and encouraging cooperation in investigations and enforcement proceedings.

The full-day event was attended by more than 900 leaders from the financial industry, listed companies, professional services firms and industry associations.

More details on the forum are available on the SFC website.

End