Martin Rogers, Mark Shipman, James Walker, Paget Dare Bryan and Charlotte Robins
The purpose of this paper is to draw attention to the Hong Kong Securities and Futures Commission (SFC) Consultation Paper on Proposals to Enhance Protection for the Investing…
Abstract
Purpose
The purpose of this paper is to draw attention to the Hong Kong Securities and Futures Commission (SFC) Consultation Paper on Proposals to Enhance Protection for the Investing Public, issued on September 23, 2009, and some of the key issues that financial services providers operating in or dealing with the Hong Kong market will need to consider.
Design/methodology/approach
The paper explains the purpose of the Consultation Paper and summarizes its proposals in three subject categories: retail products offered to the public in Hong Kong, intermediares’ conduct, and post‐sale arrangements and cooling‐off periods.
Findings
The paper finds that the SFC's overall intention is to enhance Hong Kong's existing regulatory regime for the sale of retail investment products.
Practical implications
The Consultation Paper addresses a significant number of wide ranging proposals that could have a material effect on those issuing and distributing retail investment products to the Hong Kong public, whether from inside or outside Hong Kong.
Originality/value
The paper provides practical guidance from experienced securities and financial institution lawyers.
Details
Keywords
Paget Dare Bryan, Yang TieCheng and Patrick Phua
The purpose of this paper is to discuss the trial implementation of stock index futures trading, margin trading and securities lending in China – approved in principle by the…
Abstract
Purpose
The purpose of this paper is to discuss the trial implementation of stock index futures trading, margin trading and securities lending in China – approved in principle by the State Council and confirmed by the China Securities Regulatory Commission (CSRC) on January 8, 2010.
Design/methodology/approach
The paper describes various preliminary rules and regulations for stock index futures trading, margin trading, and securities lending that have been issued starting in 2006 and the latest regulatory developments, requirements and timing related to the trial implementation.
Findings
The stringent requirements imposed by CSRC highlights its cautious approach to the trial process for margin trading and securities lending. By defining “securities lending” as the borrowing of securities and the subsequent sale of those securities in the 2006 Trial Administrative Measures, the regulator appears to leave open the possibility of short selling.
Practical implications
The Announcement has been warmly welcomed by market participants because index futures trading, margin trading and securities lending are expected to significantly add to the Chinese equity market's liquidity and price discovery process in the long run.
Originality/value
The paper provides practical guidance from experienced securities lawyers.