Hong Kong updates

10 July 2009

SFC to further study proposal to allow remote participants to access futures market

On 27th February 2009, the SFC issued a consultation paper inviting comments on whether the definition in futures contracts should be changed to allow overseas participants to participate in that market without an SFC license provided certain preconditions were met. The SFC received 16 written submissions with mixed response and is hence going to further the study before a decision can be made.

22 July 2009

Taiwan Financial Supervisory Commission’s (Taiwan FSC) has approved the first Hong Kong exchange-traded fund (ETF) in Taiwan and its application to the Taiwan Stock Exchange for listing.

23 July 2009

SFC, HKMA and 16 other banks have announced that they have reached an agreement in relation to the repurchase of Lehman Brothers Minibonds.

The Banks are: (1) ABN AMRO Bank N.V.; (2) Bank of China (Hong Kong) Ltd; (3) Bank of Communications Co Ltd; (4) The Bank of East Asia, Ltd; (5) Chiyu Banking Corporation Ltd; (6) Chong Hing Bank Ltd; (7) CITIC Ka Wah Bank Ltd; (8) Dah Sing Bank Ltd; (9) Fubon Bank (Hong Kong) Ltd; (10) Industrial and Commercial Bank of China (Asia) Ltd; (11) Mevas Bank Ltd; (12) Nanyang Commercial Bank, Ltd; (13) Public Bank (Hong Kong) Ltd; (14) Shanghai Commercial Bank Ltd; (15) Wing Hang Bank Ltd; and (16) Wing Lung Bank Ltd.

This is a particularly important announcement as the SFC was looking at up to 20,000 serious complaints regarding the activities of the banks in promoting products which became almost worthless when Lehman Brothers collapsed.  The minibonds scandal threatened the existence of both regulators, the SFC and the HKMA.