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Capital Market Regulations in Hong Kong

Capital Market Regulations in Hong Kong

Hong Kong rules and regulations for the capital market

The capital market regulations in Hong Kong are overseen by the Securities and Futures Commission (SFC). This government agency has regulatory powers and general powers over the securities market. The Hong Kong Stock Exchange is the one that regulates and controls exchange trading in the city.

Our Hong Kong company formation agents can help you if you are an investor in Hong Kong interested in setting up investment products or listing a company. For detailed information about the various set or rules and laws that combine to form the legislation for the securities market, the experts at our partner law firm in Hong Kong can help you.

Regulatory principles in Hong Kong

Hong Kong company can be listed if it complies with certain criteria for profit, accounting, auditing and public disclosure of information. Listed companies are under the surveillance of the SFC which ensures that no illegal transactions take place or that no false information is used by the company.

The goal of the existing regulations is to create a transparent investment regime in which there are no discrepancies between the information offered to the shareholders and the real situation within the company known by the the corporate management of that legal entity. Also, the law prohibits any capital market manipulations through misleading statements or various sales schemes.

Listing in Hong Kong

Hong Kong managed to become one of the leasing financial centers in the world and has recently reported a significant number of new listing proceeds. Foreign companies can also be listed in Hong Kong provided that their country of origin has local regulatory laws that provide comparable investor protection in Hong Kong.

Companies which are to be listed on the Hong Kong Stock Exchange must meet the suitability criteria and the general accepted financial reporting standards. Regulations exist for both of the two boards of the Exchange.

For more information about listing bonds or how to list on the Hong Kong Stock Exchange you can contact our Hong Kong company formation representatives.