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Financial and Monetary Affairs

Enhancing Hong Kong's Competitiveness as an International Financial Centre

To build on Hong Kong's strength as China's global financial centre, the government has been working to enhance the quality of the local financial markets and increase their depth and breadth, to keep abreast of local and international developments and to further optimise Hong Kong's regulatory framework. The financial services industry also provides a catalyst for the growth of related sectors such as professional and commercial services. High quality financial services underpin Hong Kong's position as an international business hub, helping local enterprises to seize business opportunities and attracting Mainland and overseas companies to use Hong Kong as a platform for raising funds and developing regional business.

Fund-raising Centre

The SEHK attracted 110 new listings in 2013 (including eight transfers of listing from the Growth Enterprise Market to the Main Board). Apart from Mainland and Hong Kong companies, five companies (from Malaysia, Japan, Macau, Singapore and the United States) also listed on the SEHK in 2013. Newly listed companies are attracted by the market's liquidity and access to investors across Asia. The SEHK is working to accept more overseas jurisdictions as places of incorporation.

Regulation of Corporate Conduct

The new statutory regime on disclosure of inside information came into effect on 1 January 2013. It aims to cultivate and encourage a culture of timely disclosure by listed companies to the investing public. The Securities and Futures Commission (SFC) monitors listed companies' compliance with the regime to promote enhanced disclosure, foster a change in corporate culture and facilitate timely regulatory action in cases of non-compliance.

The new requirements for IPO sponsors took effect on 1 October 2013. They emphasise early, comprehensive due diligence and a properly drafted prospectus, and encourage sponsors to take a responsible, proactive and constructive role when leading IPOs.

In addition, the SFC established a dedicated corporate regulation team to review company announcements, circulars and reports and conduct periodic in-depth reviews of companies, in line with a broader and more proactive approach in the SFC's oversight of corporate conduct of listed companies.

Regulation of Electronic Trading

In March 2013, the SFC issued the conclusions to a July 2012 consultation on the regulation of electronic trading, and strengthening the regulatory framework. It is planned to implement the enhanced regulatory framework (spelling out compliance responsibilities and regulatory standards for intermediaries) in January 2014.

Developing an Uncertificated Securities Market

Hong Kong currently has a paper-based securities market regime. Following earlier consultation, the government proposes to progress to an uncertificated securities regime, allowing investors to hold and transfer legal ownership, instead of beneficial interest only, in securities in uncertificated form. This will enhance the securities market's overall efficiency and

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