40
Duty of the Stock Exchange of Hong Kong
Following is a question by the Hon Chim Pui-chung and a reply by the Secretary for Financial Services, Mr Michael Cartland, in the Legislative Council today (Wednesday):
Question:
The recent incidents of non-compliance with the regulations of the Stock Exchange of Hong Kong Limited (SEHK) by the chairmen and directors of certain listed companies concerning non-declaration of their criminal offence records have aroused public concern. In this connection, will the Government inform this Council:
(a)
what kind of an organisation is the SEHK;
(b)
whether SEHK is empowered to formulate regulations which have a legally binding effect; and
(c)
whether persons who do not comply with the regulations of SEHK are legally responsible for such non-compliance?
Answer:
(a)
·
Mr President, The Stock Exchange of Hong Kong Limited (SEHK) is a company incorporated in Hong Kong which has the right to establish, operate and maintain a stock market in Hong Kong pursuant to section 27(1) of the Stock Exchanges Unification Ordinance (Cap. 361). Due to its unique role in our financial markets, the Stock Exchange has a duty to perform in the public interest. This is stipulated in section 27A of the Ordinance which requires the Exchange to ensure an orderly and fair market in securities trading through its facilities. In performing this duty, the Stock Exchange shall act in the interests of the public, in particular the investing public, and must ensure that such interests prevail where they are in conflict with any other interests that the Exchange is required to perform under any other law.
In the regulatory framework for securities trading, the Stock Exchange is a front line regulator responsible for the day-to-day monitoring of the operation of the Hong Kong stock market. The Securities and Futures Commission has a statutory function to be responsible for supervising and monitoring the activities of the Exchange and to promote and develop self-regulation by the Exchange and other relevant bodies.