Daily News Headlines

  • News Headlines – 27 Nov-1 Dec 2020

    [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