Hong Kong

ESG / Sustainability

HKEX Announces New Collaboration to Develop Carbon Market

By Manesh Samtani | 06/07/2022

HSBC, Standard Chartered, BNP Paribas, ANZ, ICBC, Bank of China and others will sit on a new council to help develop a Hong Kong-based international carbon market.

Market Infrastructure

Hong Kong, China to Launch ‘Swap Connect’ in Six Months

By Sanday Chongo Kabange | 05/07/2022

Swap Connect will initially enable Hong Kong and international investors to trade in Mainland interest rate swaps, and potentially other derivatives in futures.

Capital / Liquidity

HKMA Explores Use of Deep Learning for Credit Risk Assessment

By Editors | 04/07/2022

A trained model was able to consistently detect corporate credit deterioration at both the transaction level and aggregate level with a three-month lead time.

ESG / Sustainability

HKMA to Integrate Climate Risk in Supervisory Processes

By Editors | 01/07/2022

Climate risk management will be a standing item in annual prudential meetings with banks. The CAMEL rating framework will be updated.

ESG / Sustainability

SFC Reviewing Market Practices to Guard Against Risk

By Manesh Samtani | 30/06/2022

Reviews underway cover concentration risk in OTC derivatives markets, risk management at futures brokers, and block trading practices.

Securities / Derivatives

HK FRC Explores Joint Audit Inspections with Mainland Authorities

By Editors | 29/06/2022

Hong Kong’s Financial Reporting Council already has 13 cases involving mainland audit work papers, two of which have been concluded.

Securities / Derivatives

ETFs to Be Included in Stock Connect Starting 4 July

By Editors | 29/06/2022

The relevant rules and operational and regulatory arrangements have been finalised and technical systems have been put in place.

Enforcement

SFC Fines CES Capital for Fund Management Failures

By Editors | 28/06/2022

CES Capital International failed to perform sufficient due diligence and monitoring of the underlying investments of two funds.

Fintech / Regtech

Impacts of New PCPD Guidance on Cross-border Data Transfers

By Albert Yuen | 27/06/2022

FIs in Hong Kong should review whether their commercial agreements contain requirements equivalent to the recommended model contractual clauses, say Albert Yuen and Eunice Lee.