Hong Kong SFC Releases Quarterly Report for Q2 2021

The Securities and Futures Commission of Hong Kong (SFC) highlighted its key achievements from April to June 2021 in its quarterly report.

According to the report, SFC's total number of licensees and registrants jumped to 47,527 and the total number of licensed corporations spiked to 3,174.

The regulatory authority vetted 120 new listing applications during the period, including five from companies with a weighted voting rights structure and 14 from pre-profit biotech companies.

It authorised 39 unit trusts and mutual funds (including 17 Hong Kong-domiciled funds), two investment-linked assurance schemes, one REIT and 24 unlisted structured investment products for public offering. Four corporations and three individuals were disciplined in this quarter, resulting in total fines of $5 million.

During the three months, SFC provided asset managers with further guidance on disclosures for environmental, social and governance funds, especially those with a climate-related focus, to help investors better understand these products and combat greenwashing.

The SFC also stepped up its joint efforts with the Stock Exchange of Hong Kong Limited (SEHK) to combat misconduct and improper behaviour in new listings. Problematic applications with red flags indicating a lack of genuine investor interest are now subject to heightened scrutiny, and the regulators will object to or reject an application if necessary.