ENG-2020 — Page 114

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Financial and Monetary Affairs

Companies Registry Statistics

New local companies

2018

2019

2020

151,739

124,741

99,405

Local companies on the register

1,400,950

1,380,185

1,387,919

New non-Hong Kong companies

1,193

2,000

1,757

Non-Hong Kong companies on the register

11,061

12,494

13,752

Individual and Corporate Insolvencies

The Official Receiver's Office ensures service in personal and corporate insolvencies is of high quality on a par with international standards.

When acting as the trustee-in-bankruptcy or liquidator, the Official Receiver or a private-sector insolvency practitioner investigates the affairs of the bankrupt or wound-up company, realises assets and distributes dividends to creditors. The Official Receiver also prosecutes insolvency- related offences under the Bankruptcy Ordinance and Companies (Winding Up and Miscellaneous Provisions) Ordinance, applies for disqualification orders against unfit company directors of wound-up companies, and monitors the conduct of outside liquidators and trustees and the liquidation monies.

Statistics on Bankruptcy Orders, Interim Orders in Individual Voluntary Arrangements (IVAs) and Winding-up Orders

Bankruptcy orders

Interim orders in IVAS

Winding-up orders

2018

2019

2020

7,146

7,762

6,685

555

587

500

255

244

234

Resolution Regime for Financial Institutions

The Financial Institutions (Resolution) Ordinance establishes a cross-sectoral resolution regime for financial institutions in Hong Kong. Following its enactment in 2017, the FSB noted in its Peer Review Report of Hong Kong that the city was 'one of the few FSB jurisdictions with a fully cross-sectoral resolution regime!

The resolution authorities are operationalising the cross-sectoral resolution regime for financial institutions in Hong Kong. The HKMA proposed to make rules under the ordinance on contractual stays for authorised institutions, which seek to address the risk to cross-border effectiveness of resolution arising from the early termination of financial contracts that are governed by non-Hong Kong law. The HKMA consulted the public on the policy proposals in January. In December, it released the consultation's conclusions and consulted the industry on the text of the draft rules.

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