Key SFC releases over the Christmas and New Year Break

Over the Christmas and New Year break there have been several media releases by the SFC in Hong Kong. Below is a brief summary of the major announcements. Further details can be found on the SFC website

• The SFC plans to make January the investor education month with a series of events including a radio program, additional advertising and a financial knowledge quiz. Mr Martin Wheatley, the SFC’s Chief Executive Officer, said: “The New Year is a good time for investors to review their investment portfolios and plan ahead. Amidst growing concerns of asset price bubbles forming in emerging markets and recent volatility in the global financial markets, it is important that investors do their homework, ask the right questions and evaluate risks to make informed investment decisions.”
• The SFC released its annual report on the operation of the Stock Exchange of Hong Kong. The SFC reported that the operational procedures and decision-making processes reviewed were appropriate to enable the Exchange to discharge its statutory obligation to maintain an orderly, informed and fair market, and to make rules for the proper regulation and efficient operation of the market in 2008. The SFC did however, find some areas for improvement.
• The SFC together with Hong Kong Exchanges and Clearing Limited (HKEx) and the Federation of Share Registrars Limited (FSR) jointly issued a consultation paper on a proposed operational model to introduce a scripless securities market in Hong Kong. The key proposals are:    investors may choose to hold their securities in scripless form; all scripless securities will be held inside the Central Clearing and Settlement System; and to the extent possible, the regime will also apply to shares and debentures of overseas companies that are listed in Hong Kong. All comments are due by 31 March 2010.