Capital Market Regulations in Hong Kong
Capital Market Regulations in Hong KongUpdated on Thursday 19th May 2016
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The regulatory framework
The capital market regulations in Hong Kong are of great importance to the functioning and development of the market economy. A growing market like Hong Kong’s has the potential to attract numerous foreign investors and it is important to understand how securities are regulated in the city.
The regulatory framework of the Hong Kong Exchanges and Clearing Limited (HKEx) is important for any company in Hong Kong, foreign or local, that wants to be listed on the stock exchange. The Securities and Futures Ordinance sets forth the regulatory objectives which are currently into force in Hong Kong.
The Securities and Futures Commission regulates investors, brokers, fund managers, investment products, listed companies, the HKEx, automated trading service providers and other market participants.
The representatives at our law firm in Hong Kong can help you with additional and detailed information about the regulatory documents and ordinances if you want to engage in dealing in securities.
Foreign companies listed in Hong Kong
Foreign companies listings in Hong Kong are expected to grow on the long term. The current legislation requires that in order for a company which comes from a different jurisdiction to be listed in Hong Kong, the laws of the jurisdiction must offer comparable investor protection to Hong Kong. Until now, companies from various other countries like Japan, France, Germany, Luxembourg and others are accepted as suitable for trading and listing in Hong Kong
Rules for trading on the stock exchange in Hong Kong
No company can trade on the Hong Kong Stock Exchange unless it has a Stock Exchange Trading Right. These are issued by the Board of the HKEx and they may be amended from time to time. After the application for such a right is submitted along with the required documents and approved, the applicant must also pay a fee for obtaining the permit.
If you want to know more about investing in Hong Kong, our experts can help you. Contact our Hong Kong law firm for detailed information about trading and financial market regulations.