[Hong Kong] SFC Concludes Consultation on Changes to
The REIT Code
SFC News, 27 Nov 2020
The SFC released consultation conclusions on proposals
to provide Hong Kong Real Estate Investment Trusts (REITs) with more
flexibility in making investments. The proposals will be implemented with some
modifications to clarify specific requirements such as those which apply to
minority-owned properties. The revised REIT Code will become effective upon
gazettal. For connected party transactions which were entered into before the
effective date, a transitional period of six months will be allowed for REITs
to comply with the revised requirements.
Full text: click here; Consultation Conclusions: click here
[Hong Kong] HKEX Announces Stock Connect Expansion
Arrangements
HKEX News, 27 Nov 2020
HKEX announced that its wholly-owned subsidiary, The
Stock Exchange of Hong Kong Limited (SEHK), has reached an agreement with
Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) on the Stock
Connect inclusion arrangements for eligible pre-revenue biotech companies
listed in Hong Kong, as well as for eligible A-shares listed on the SSE’s
Sci-Tech Innovation Board (STAR Market).
Full text: click here
[Singapore and Mainland China] MAS and CBIRC Held Its
10th Bilateral Supervisory Meeting Virtually
MAS News, 27 Nov 2020
The
Monetary Authority of Singapore (MAS) and the China Banking and Insurance
Regulatory Commission (CBIRC) held their annual MAS-CBIRC Supervisory
Roundtable. This is the 10th bilateral meeting between both regulators since
2006 and the first time in a virtual meeting format via video conference. During
the session, the regulators exchanged views on developments in the banking and
insurance sectors, with particular focus on how their financial institutions
have managed and responded to COVID-19 developments. The regulators also
exchanged views on topics of mutual interest, such as green finance,
supervisory framework for online distribution of financial products and
regulatory sandbox practices.
Full
text: click here
[Hong
Kong] Hong Kong doctor is cleared in massive securities fraud probe
Business
Times, 30 Nov 2020
Hong
Kong's securities watchdog has failed to secure convictions in its largest-ever
investigation after a key figure in the city's so-called nefarious networks was
cleared of charges. Cho Kwai-chee, founder of Hong Kong's largest private
healthcare group, was found not guilty of defrauding the stock exchange and
investors in financial brokerage firm Convoy Global Holdings, where he had been
a director. He was also cleared of charges to publish false statements in
Convoy's annual accounts. The SFC had been investigating Convoy since as early
as 2017 after local activist investor David Webb accused the firm of being part
of an elaborate network of intertwined public companies, prompting the share
prices at several of them to collapse.
Full
text: click here
[Hong
Kong] SFC commences legal proceedings against New Ray Medicine International
Holding Limited and its former top executives
SFC
News, 30 Nov 2020
The
SFC has commenced legal proceedings in the Court of First Instance to seek
disqualification orders against former chairman and executive director of New
Ray Medicine International Holding Limited (New Ray), Mr Zhou Ling, and the
company’s former chief executive officer and executive director, Mr Dai
Haidong, for allegedly committing corporate misconduct and breaching their
duties towards New Ray. The SFC’s action follows an investigation into
suspicious payments and undisclosed arrangements between New Ray’s senior
executives and the counterparties of transactions involving New Ray which took
place in 2015 and 2017.
Full
text: click here
[Hong
Kong] Capital treatment of securitisations of non-performing loans
HKMA
Circulars, 30 Nov 2020
The
Basel Committee on Banking Supervision (BCBS) issued a technical amendment, which
allows banks using the internal ratings-based approach or the standardised
approach of the existing securitisation framework to apply a risk weight of
100% to senior tranches of certain types of NPL securitisations, to the Basel
capital framework on 26 November 2020 to set out the capital treatment of
non-performing loan (NPL) securitisations. Hence, the HKMA intends to implement
the technical amendment and the Basel III final reform package at the same time,
currently intended to be 1 January 2023.
Full
text: click here
[Singapore] Non-Bank
Financial Institutions to have Access to FAST and PayNow
MAS News, 30 Nov
2020
The MAS announced that
eligible non-bank financial institutions (NFIs) will have direct access to the
banking system’s retail payments infrastructure from February 2021. NFIs that
are licenced as major payment institutions under the Payment Services Act will
be allowed to connect directly to Fast and Secure Transfers (FAST) and PayNow. Direct
connection to FAST and PayNow will enable users of NFI e-wallets to make
real-time funds transfers between bank accounts and e-wallets as well as across
different e-wallets. Currently, most e-wallets require the use of debit or
credit cards to top-up funds, and funds transfers between e-wallets are not
possible.
Full text: click here
[Singapore] MAS
Orders Removal of Eagle Hospitality REIT Manager
MAS News, 30 Nov
2020
The MAS announced that
it has directed DBS Trustee Limited (Trustee), in its capacity as the trustee
of Eagle Hospitality Real Estate Investment Trust (EH-REIT), to remove Eagle
Hospitality REIT Management Pte Ltd (EH-REIT Mgt) as the Manager of EH-REIT,
and to appoint a new manager as soon as practicable. MAS continues to have
serious concerns with EH-REIT Mgt’s ability and commitment to comply with MAS’
rules and regulations, given the numerous breaches of the Securities and
Futures Act, including recurrent and ongoing breaches of capital and financial
requirements.
Full text: click here
[Singapore] Commodity-finance
industry in Singapore gets code of best practices
Business Times, 30
Nov 2020
A set of best
practices for commodity financing was rolled out on Monday, the first such code
for the industry in Singapore. This comes after the city-state's reputation as
a trusted hub for this lending segment has taken a hit of late. The Code of
Best Practices for Commodity Financing by the Association of Banks in Singapore
lays out key principles governing prudent commodity trade financing practices. It
provides a benchmark for banks' lending standards in the sector to make
Singapore more resilient, relevant and competitive as a global commodity
trading hub.
Full text: click here
[Mainland China] China
to expand outbound investment schemes
China Daily, 30 Nov
2020
China will expand
the scale of two pilot schemes that allow domestic investors to access foreign
assets. The scale of the outbound investment schemes – Qualified Domestic
Limited Partner (QDLP) and Qualified Domestic Investment Enterprise (QDIE) – in
Shanghai, Beijing and Shenzhen will be expanded in the near future, according
to the State Administration of Foreign Exchange.
Full text: click here
[Singapore] Notice
SFA 02-N02 Supervision of Market Participants
MAS Regulation, 1
Dec 2020
This Notice sets
out the requirements for Recognised Market Operators in terms of participant compliance
with business rules and Part XII of Securities Futures Act, participant access
to markets, and notifications in relation to disciplinary actions taken against
a participant.
Full text: click here
