[Hong Kong] Market Misconduct Tribunal finds insider dealing in China Gas shares
SFC News, 10 Dec 2020
The Market Misconduct Tribunal (MMT) has found that Mr Cheng Chak Ngok, former executive director, chief financial officer and company secretary of ENN Energy Holdings Limited (ENN Energy), had engaged in insider dealing in the shares of China Gas Holdings Limited (China Gas) in 2011 following a retrial. The MMT concluded that neither the nominee nor some unidentified individual would have been in a position to place the orders and will determine the sanctions against Cheng at a later date.
Full text: click here
[Hong Kong] SFC provides additional guidance on external electronic data storage
SFC News, 10 Dec 2020
The SFC released additional guidance to market participants on external electronic data storage in response to questions from licensed corporations and other stakeholders. The guidance set out requirements for using external electronic data storage providers (EDSPs) to exclusively keep records or documents required under the Securities and Futures Ordinance (SFO) or the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. As an alternative means of satisfying the requirements in the circular, the SFC will accept an undertaking from each of the licensed corporation’s two Managers-In-Charge (MICs) of Core Function or, with the SFC’s consent, one MIC or one Responsible Officer. The SFC also made consequential changes to its ‘FAQs on premises for business and record keeping’.
Full text: click here; the Guidance (in the form of FAQs): click here; FAQs on premises for business and record keeping: click here
[Hong Kong] SFC proposes to upgrade the industry’s competency standards
SFC News, 11 Dec 2020
The SFC launched a consultation on proposals to update its entry requirements for licence applicants as well as its ongoing competency standards for individual practitioners. Under the proposals, the minimum academic qualification requirements would be raised and a broader range of qualifications would be recognised. In addition, applicants would have more flexibility for meeting the industry qualification and regulatory examination requirements. Continuous Professional Training requirements for individual practitioners would also be enhanced.
Full text: click here; the Consultation: click here
[Hong Kong] Exchange publishes its latest review of issuers’ corporate governance practices, and practitioners’ insights on corporate governance and ESG
HKEX News, 11 Dec 2020
The Stock Exchange of Hong Kong Limited published: (a) the findings of its latest review of issuers’ corporate governance practices (Review); and (b) market practitioners’ insights entitled “Making inroads into good Corporate Governance and ESG management” (Practitioners’ Insights). The Review provides guidance to issuers on possible improvements to their corporate governance practices. The Exchange also published a Practitioners Insights which presents a collection of experiences shared by market practitioners, with an aim to help directors of listing applicants and newly listed companies think holistically about building and integrating corporate governance and ESG considerations into their business strategy to achieve long-term value for their organisations.
Full text: click here; the Review: click here; the Practitioners’ Insights: click here
[Singapore] MAS Expands Mandate of Industry Steering Committee to Drive SIBOR Transition
MAS News, 11 Dec 2020
The MAS announced that the mandate of the Steering Committee for SOR Transition to SORA (Committee) will be expanded to enable it to oversee the interest rate benchmark transition from SIBOR to SORA. This follows a joint industry report published today (11/12) announcing the discontinuation of the remaining SIBOR tenors in phases over the next four years. The Committee will be renamed as the Steering Committee for SOR & SIBOR Transition to SORA (SC-STS).
Full text: click here
[Singapore] Key Financial Industry Committees Set Out Timelines for SIBOR Discontinuation
ABS News, 11 Dec 2020
The Association of Banks in Singapore (“ABS”), the Singapore Foreign Exchange Market Committee (“SFEMC”) and the Steering Committee for SOR & SIBOR Transition to SORA (“SC-STS”) (collectively the “Committees”) released their responses to the feedback received on the report “SIBOR Reform and the Future Landscape for SGD Interest Rate Benchmarks” (“Report”). In connection with this, the Committees also published timelines for the discontinuation of the Singapore Interbank Offered Rate (“SIBOR”) by end-2024 and established the milestones for the discontinuation of SIBOR. The widely-used 1-month and 3-month SIBOR will be discontinued in four years’ time, by the end of 2024; while the 6-month SIBOR will be discontinued three months after the discontinuation of the 6-month SOR.
Full text: click here
[Singapore and Mainland China] Singapore, Shanghai to boost collaboration in financial services, innovation
Business Times, 11 Dec 2020
Singapore and Shanghai will strengthen collaboration in financial services and innovation, as the latter develops the China (Shanghai) Free Trade Zone and spearheads the integration of the Yangtze River Delta region. Second Minister for Finance Lawrence Wong has proposed that Singapore and Shanghai continue to bolster their hub-to-hub connectivity in three key areas which includes financial connectivity, transport and supply chain, as well as enhancing innovation linkages.
Full text: click here
[Singapore and Mainland China] Singapore, China bond markets to get boost from SGX-CCDC pact
Business Times, 11 Dec 2020
The Singapore Exchange (SGX) has inked an agreement with the China Central Depository & Clearing Co (CCDC) to strengthen and promote the bond markets of both countries. Under the MOU, SGX will work with CCDC to promote the internationalisation of China's bond market, and provide Chinese bond products and services internationally.
Full text: click here
[Hong Kong] Market Misconduct Tribunal finds Li Yik Shuen culpable of insider dealing in Meadville Holdings Limited shares
SFC News, 14 Dec 2020
The Market Misconduct Tribunal (MMT) has found that Ms Li Yik Shuen engaged in insider dealing in the shares of Meadville Holdings Limited in 2009 following proceedings brought by the SFC. The SFC alleged that Mr Tom Tang Chung Yen, the former chairman and an executive director of Meadville, had tipped off Li about a proposed sale of Meadville’s principal businesses and Li went on to purchase Meadville shares before Meadville issued an announcement on 16 November 2009 regarding the sale of its core printed circuit board and laminate businesses as well as the distribution of a special dividend. The MMT is satisfied that Li was in possession of relevant information that she received from Tang when she spent $5.95 million to purchase Meadville shares between 23 and 28 October in 2009, and made a profit in a sum of $546,817.43 following her disposal of the Meadville shares.
Full text: click here
[Hong Kong] Circular to all licensed corporations - Reminder of implementation of regulatory standards for leveraged foreign exchange trading activities
SFC Circulars, 14 Dec 2020
The SFC reminds licensed corporations (LCs) that the expected regulatory standards covering customer due diligence, handling of client orders, conflicts of interest and information for clients in respect of leveraged foreign exchange trading (LFET) activities will come into effect on 1 January 2021.
Full text: click here
