The Securities and Futures Commission (SFC), the financial regulator for Hong Kong, has started to enact discussions with members of its market. Particularly, the SFC is in talks with the financial institutions in its market that are active globally. These discussions are primarily regarding the concerns these firms have expressed to the potential implications that the new National Security Law (NSL) poses. Particularly, the implications it has on the way they do business within the country.
Trying To Do Damage Control
As a response to these discussions, the SFC has opted to release a statement about the matter at large.
According to the SFC, it’s unaware of any aspect in which the NSL could alter or affect the existing ways that listed companies and firms could access, originate, transmit, and disseminate financial market information. This is assuming that this information, and related business information, falls under the jurisdiction of the SFC, of course. An example given is the principles that apply analysts, as well as the methodologies, applies to them. This comes in regards to sources of information and data they leverage, as well as the way they express their opinions and views on reports. According to the SFC, something like that should remain completely unchanged.
Assurances Of Activities Remaining Stable
Alongside this, the SFC stated that the market trading activities’ governing rules and accepted practices should remain unchanged, as all regulations are still administered by the SFC in the same way as before the NSL’s inception. This applies to exchange-traded and over-the-counter derivatives, as well as hedging strategies and activities under the short-selling regime of Hong Kong.
Claims Of Improved Market
The stock and derivative markets of Hong Kong has been operating without much problem since the enactment of the NSL, according to the SFC. The regulator took note of a very active level of trading within the Hong Kong Stock market, allegedly. According to the SFC, July’s first half saw an increase in average daily trading by a considerable degree. The SFC cites participation from all fronts, be it local, international, or Mainland Chinese investors that invest through Stock Connect. Stock Connect’s northbound trading by international investors had doubled, according to the SFC.
The SFC assured that Hong Kong’s markets will still be regulated the same way that it had been before the enacting of the SFC. Whether or not that is the truth, or will stay the truth for any measurable amount of time, remains to be seen, however, as China is quite liberal on promises of what it does and doesn’t do, as long as it benefits the country.