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Financial and Monetary Affairs
capitalise on opportunities arising from the Belt and Road Initiative and Greater Bay Area to consolidate and enhance its position as a major platform of capital raising and financing for Mainland and overseas enterprises as well as a global hub for offshore Renminbi (RMB) business.
Financial Regulators
Hong Kong Monetary Authority
The Hong Kong Monetary Authority (HKMA) maintains currency stability within the framework of the Linked Exchange Rate System through sound management of the Exchange Fund, monetary policy operations and other means deemed necessary; promotes stability and integrity of the financial system, including the banking system; helps maintain Hong Kong's status as an international financial centre, including the maintenance and development of Hong Kong's financial infrastructure; and manages the Exchange Fund.
The HKMA is an integral part of the government, but operates with a high degree of autonomy complemented by a high degree of accountability and transparency, and can employ people on terms different from those of the civil service to attract personnel of suitable experience and expertise. It is accountable to the Financial Secretary, who is advised by the Exchange Fund Advisory Committee (EFAC) in exercising control of the Exchange Fund.
The Banking Advisory Committee and Deposit-taking Companies Advisory Committee are established under the Banking Ordinance to advise on matters relating to the banking industry. Both committees are chaired by the Financial Secretary and comprise members from the banking and other professions.
Securities and Futures Commission
As the statutory regulator of Hong Kong's securities and futures markets, the Securities and Futures Commission (SFC) derives its powers from the Securities and Futures Ordinance (SFO). Its regulatory work can be categorised into five areas: intermediaries, investment products, listings and takeovers, market infrastructure, and enforcement.
Intermediaries - The SFC sets standards for industry practitioners seeking to be, and to remain, licensed. It supervises licensed corporations, including stock brokers, futures and leveraged foreign exchange (forex) dealers, fund managers, investment and corporate finance advisers, and credit rating agencies, to ensure their financial soundness and compliance with conduct requirements.
Investment products - The SFC maintains a robust regulatory regime and performs gatekeeping functions in authorising investment products offered to the public in Hong Kong under the SFO, monitoring compliance with disclosure and other requirements. It formulates policies to regulate the asset and wealth management industry, and pursues initiatives that facilitate Hong Kong's development as a full-fledged international fund service centre.
Listings and takeovers - The SFC oversees listings and takeovers in Hong Kong, including the vetting of listing applications, disclosure requirements for listed companies, corporate conduct,
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