HK SFC Reports Licensees and Registrants Total 48,401 in 2021-22

The Securities and Futures Commission (SFC) today published its Annual Report 2021-22 which sets out its priorities for upholding market integrity and strengthening Hong Kong's status as a premier international financial centre amidst a fast-changing environment.

Combating investment fraud and scams on online platforms remained an SFC enforcement priority. It also strengthened its collaboration with local and overseas regulators and law enforcement agencies.

"Hong Kong is an essential gateway to the Mainland for global firms and investors and our markets have demonstrated strong resilience throughout unprecedented challenges," said Mr Tim Lui, the SFC's Chairman. "We are confident that Hong Kong's position as a leading global financial centre is secure."

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To strengthen Hong Kong's competitiveness as a leading asset and wealth management centre, the SFC authorised a number of new exchange-traded funds and other investment products in Hong Kong. In addition, the launch of the MSCI China A 50 Connect Index Futures contract provides an additional risk management tool for hedging exposures to the Mainland’s A-share market.

To promote sustainability and tackle climate change, the Green and Sustainable Finance Cross-Agency Steering Group, co-chaired by the SFC and the Hong Kong Monetary Authority, published a preliminary feasibility assessment of carbon market opportunities for Hong Kong and announced next steps to transition the financial ecosystem towards carbon neutrality. The SFC also concluded a consultation on requirements for fund managers to consider climate-related risks in investment and risk management processes and provide investors with appropriate disclosures.

Key statistics for the year include the following:

• The number of Licensees and registrants increased to 48,401 and the SFC received 7,163 new licence applications

• The SFC authorised 166 collective investment schemes, bringing the total number to 2,849 as of end-March 2022, of which 866 were domiciled in Hong Kong

• It vetted 306 listing applications and supervised 385 takeovers-related transactions

• It directly sought information from or expressed concerns with seven listing applicants, exercising its powers under the Securities and Futures (Stock Market Listing) Rules

• It conducted 262 risk-based on-site inspections of intermediaries and noted 1,416 incidents of breaches of the SFC’s rules

• It made 7,308 requests for trading and account records from intermediaries as a result of market surveillance

• It disciplined 17 firms and 19 individuals, imposed fines totalling $410.1 million for intermediary misconduct and executed search warrants in 37 cases

• ​Mainland-Hong Kong Stock Connect covered 1,487 Mainland stocks and 547 Hong Kong stocks as of end-March 2022, representing about 80% of the two markets’ combined market capitalisation, and southbound trading net inflows reached RMB1,983.1 billion since the scheme’s launch