In March 2002, the Legislative Council of the Hong Kong Special Administrative Region voted to pass the Securities and Futures Ordinance. These Provisions came into effect on April 1 2003. The Securities and Futures Ordinance is the most important securities regulatory regulation in Hong Kong. This Ordinance incorporates the previously promulgated Securities Ordinance, Investor Protection Ordinance and Shangkou csu means X-W, Exchange Ordinance (promulgated at 1976), Stock Exchange Merger Ordinance (promulgated at 198 1) and Securities and Futures Affairs.
The main contents of the Securities and Futures Ordinance include:
(1) clarifies the regulatory objectives of the Securities and Futures Commission (hereinafter referred to as the Hong Kong Securities and Futures Commission). Mainly: maintaining and promoting fairness, efficiency, competition, transparency and order in the securities and futures industry; Enhance public understanding of the operation and function of the securities and futures industry; To provide protection for the public who invest in or hold financial products; Reduce crime and misconduct in the securities and futures industry; Reduce system risk; Assist the Financial Secretary of the Hong Kong Special Administrative Region in maintaining Hong Kong's financial stability.
(2) Expand the investigation power and punishment power of the Hong Kong Securities Regulatory Commission. Clarify the assistance obligations of the respondents and authorize the Hong Kong Securities Regulatory Commission to investigate people or institutions closely related to listed companies; Simplify the disciplinary procedure; Authorize the Hong Kong Securities Regulatory Commission to impose fines on violators or institutions and suspend the licenses of intermediaries.
(3) Establish a Market Misconduct Tribunal. After investigation, the tribunal may make a decision to sanction market misconduct, such as insider trading, price manipulation, false trading and disclosure of false or misleading information. If it constitutes a criminal offence, the Hong Kong Securities Regulatory Commission may directly institute criminal proceedings.
(4) Establish a "double filing" system. At the same time, the application documents of the starting company are "double-filed" at the Hong Kong Stock Exchange and the Hong Kong Securities Regulatory Commission, and are reviewed by the two institutions. The Hong Kong Securities Regulatory Commission has the right to express opinions on the application documents or oppose the application. If the SFC finds that the application documents contain incorrect or misleading information, it can take investigation and enforcement actions.
(5) Disclosure of securities rights and interests. The disclosure threshold for holding the rights and interests of listed companies is reduced from l0% to 5%; The time limit for disclosure is reduced from 5 working days to 3 working days; The major shareholder shall disclose the consideration payable or receivable for acquiring or disposing of the rights and interests.
(6) Simplify the licensing system for intermediaries. All kinds of licenses are combined into one, and the Hong Kong Securities Regulatory Commission issues a single license to specify the permitted business scope; Introduce the responsible person mechanism, and stipulate that all personnel who actively participate in or supervise the company's supervision activities must be registered as responsible persons with the China Securities Regulatory Commission, and be directly responsible for supervising the supervision activities of licensed companies.
(7) Supervise automated transactions. Authorize the Hong Kong Securities Regulatory Commission to supervise electronic trading systems outside the centralized trading market.
(8) Investment offer. Expand the definition of investment offer and authorize the Hong Kong Securities Regulatory Commission to supervise the investment arrangements of any department related to property (currency and securities).
(9) Establish an investor compensation company. Transfer the original SEHK compensation fund and the futures exchange compensation fund to the investor compensation company, which is responsible for the management and implementation of the compensation fund. The maximum compensation for a single investor is150,000 Hong Kong dollars. Expand the scope of intermediaries, from stock futures brokers to exchange participants and non-exchange participants.
The relevant provisions formulated by the Hong Kong Securities Regulatory Commission mainly include:
(1) Code for Takeovers and Mergers of Hong Kong Companies. It is a non-statutory code formulated by the Hong Kong Securities Regulatory Commission to supervise the merger and acquisition activities of listed companies. Originally formulated in1August, 975, based on the British "London Urban Acquisition and Merger Guidelines", it was revised several times later. The basic principles and procedures contained in the code are recognized standards for commercial acquisitions and mergers.
(2) Code for Share Repurchase of Hong Kong Companies. It is a non-statutory code formulated by the Hong Kong Securities Regulatory Commission to regulate the repurchase of shares by listed companies. L99 1 was promulgated on February 6th and took effect on May 13 of that year.
The basic purpose of the above two codes is to ensure that shareholders affected by acquisitions, mergers and share repurchases are treated fairly. Both of the above codes stipulate that shareholders should obtain enough information in a timely and open manner, make an informed decision on the advantages and disadvantages of the offer, and ensure that the shares affected by acquisition, merger and share repurchase can be traded in a fair and fully disclosed market.
(3) Hong Kong Code for Unit Trusts and Mutual Funds. It is a non-statutory code formulated by the Hong Kong Securities Regulatory Commission for the supervision of trust funds and mutual funds. It was first promulgated on July 3, 1978 at/kloc-0. The main purpose of the code is to protect the rights and interests of investors who buy collective investment products such as unit trusts and mutual funds.
In addition, laws and regulations related to Hong Kong's securities market include the Companies Ordinance and the Banking (Amendment) Ordinance.
Basic knowledge of securities guides the main regulations of Hong Kong securities market in 2009. Basic knowledge guide in 2009: What are the main laws and regulations of Hong Kong's securities market? View all document resources of securities qualification examination >>