Hong Kong Law
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Ernst & Young Discontinues Appeal over Producing Chinese Audit Working Papers to SFC
Ernst & Young (EY) has discontinued its appeal against the May 2014 order of Hong Kong’s Court of First Instance requiring it to hand over to the Securities and Futures Commission (the SFC) audit working papers…
SFC Fines Licensed Entity HK$4.5 million for Delay in Reporting Trader’s Misconduct
The Hong Kong Securities and Futures Commission (the SFC) has reprimanded and fined Nomura International (Hong Kong) Limited (Nomura Hong Kong) HK$4.5 million for failing to immediately report misconduct…
SFC Brings First Action for Breach of Listed Companies’ Obligation to Disclose Inside Information under Part XIVA Securities and Futures Ordinance
The Securities and Futures Commission (SFC) has started proceedings for the first time for breach of listed companies’ obligation to announce inside information as soon as reasonably practicable under Part…
Hong Kong Accountants’ Exemption from Restrictions on Foreign Accountants Auditing Chinese Companies Listing Offshore
Hong Kong, Macau and Taiwanese audit firms have been exempted from new rules which prevent foreign auditors from auditing Mainland Chinese companies unless they team up with a Mainland Chinese accounting firm.
Exchange Publishes Guidance on Issue of Convertible Securities by Listed Issuers
The Stock Exchange of Hong Kong Limited (the Exchange) has published guidance letter HKEx-GL80-151 (the Guidance Letter) providing guidance on the Listing Rules’ requirements for issues of convertible securities…
Mainland-Hong Kong Mutual Recognition of Funds Initiative to Launch on 1 July 2015
The much anticipated Mainland-Hong Kong Mutual Recognition of Funds Initiative (MRF) will be launched on 1 July 2015 with a total investment quota of RMB 600 billion following a Joint Announcement made by …
SFC Publishes Update on Intermediaries’ KYC and Account Opening Obligations
The Hong Kong Securities and Futures Commission (SFC) has published a circular1 reminding intermediaries of the requirements in relation to Know-Your-Client (KYC) and account opening procedures…
Hong Kong Listing Rule Amendments to Reflect New Financial Information Disclosure and Other Requirements
The Hong Kong Stock Exchange (the Exchange) has published its Consultation Conclusions1 on amendments to the Listing Rules to reflect changes in the requirements for disclosure of financial information…
Hong Kong Stock Exchange 2015 Listing Decisions: Regulatory Breaches Impact Cash Flow Calculation and Controlling Shareholders’ Post-IPO Lock-up Explained
The Hong Kong Exchanges and Clearing Limited (the Exchange) has published two listing decisions in 2015: Listing Decision HKEx-LD85-20151 which applied the Listing Rules’ 12-month lock-up restriction on …
New SFC Guidance on Inside Information and Listing Document Disclosure and Appropriateness of IPO Incentive Schemes
The Securities and Futures Commission’s (the SFC’s) latest Corporate Regulation Newsletter (Issue No. 2 of April 2015)1 includes guidance on: Aspects of listed companies’ obligation to disclose inside …
China Adds 3 New FTZs and Introduces New National Security Review Procedures for Foreign Investments in FTZs
Having experimented with the Shanghai Free Trade Zone (SFTZ) for more than a year, in December 2014, China’s Premier Li Keqiang approved three new Free Trade Zones (FTZs) in Guangdong, Fujian and Tianjin…
Court of Final Appeal Ruling: Pacific Sun Advisors and its Director Acquitted of SFO Offence re. Unauthorised Issue of Fund Advertisements
On 20 March, 2015, the Hong Kong Court of Final Appeal (the CFA) ruled1 in favour of Pacific Sun Advisors Limited (Pacific Sun) and its director and CEO, Mr. Andrew Mantel. The CFA affirmed the Magistrates’ …