Akin Gump Strauss Hauer & Feld LLP (JD Supra Hong Kong)

On May 14, 2021, the Department of Justice of the government of the Hong Kong Special Administrative Region announced that the Secretary for Justice of Hong Kong and the Vice-president of the Supreme People’s Court (the “SPC”) had signed the Record of Meeting on Mutual Recognition of and Assistance to Bankruptcy (Insolvency) Proceedings between the Courts of the Mainland and of the Hong Kong...

In light of the global economic dislocation and significant challenges faced by many businesses in Asia over the past year, the Hong Kong Companies Court has recently been grappling with multiple crossborder corporate insolvencies, including many that relate to Mainland China-based businesses. In this context, judicial attention has focused on a number of interesting and novel issues leading to...

In Re Lamtex Holdings Limited, the Hong Kong Companies Court recently ordered the winding-up of a Bermuda-incorporated Hong Kong-listed company. While the winding-up in Hong Kong of a foreign-incorporated company is not novel, the company in this case—with businesses in Hong Kong and Mainland China—had already been placed into “soft-touch” provisional liquidation in Bermuda, its jurisdiction of...

Maeda Corporation and China State Construction Engineering (Hong Kong) Limited v Bauer Hong Kong Limited handed down in the Hong Kong Court of Appeal has significantly elevated the fundamental importance of so-called ‘time-bar’ clauses (commonly seen in engineering, procurement and construction (EPC) contracts, International Federation of Consulting Engineers (FIDIC) forms of contract (e.g.,...

On June 30, the Standing Committee of the National People’s Congress (the “Standing Committee”) in the People’s Republic of China (“China”) unanimously passed The Law of the People’s Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region (the “Law”). Later that day, the Law was inserted into Annex III of the Basic Law, the mini constitution of the...

Following the decision taken by China’s National People’s Congress to adopt a new national security law (the “Security Law”) for the Hong Kong Special Administrative Region (“Hong Kong”) on May 28, the Standing Committee of the National People’s Congress (the “Standing Committee”) met recently for the first time to consider the terms of the new legislation. There had been speculation that the...

- The Financial Services and the Treasury Bureau proposed a limited partnership regime for investment funds in Hong Kong to enhance the attractiveness of the Hong Kong asset and wealth management industry. - Similar to other jurisdictions, such as the Cayman Islands and Singapore, with a similar regime, the Hong Kong limited partnership fund regime will assume a registration system. - The

In recent years, the Hong Kong Securities and Futures Commission (SFC) has increasingly focused on private equity funds’ obligation to be licensed under the Securities and Futures Ordinance (SFO). In February 2019, the SFC’s Licensing Handbook was updated to specifically note that private equity and venture capital firms may, depending on the nature of their business activities, be required to...

• The revised UT Code came into effect on 1 January 2019, with a 12-month transition period for compliance by funds currently registered with the SFC. • Revised regulatory standards will impact all SFC-authorised funds and the fund managers of SFC-authorised funds. • The updates to the registered fund regime in Hong Kong should broaden the variety of registered investment products available

• The High Court of Hong Kong has handed down an intriguing insolvency and restructuring decision which reaffirms the Hong Kong court’s pragmatic approach to cross-border restructuring. The decision addresses, for the first time in Hong Kong, the cross-border aspects of a recently enacted restructuring regime in Singapore which is, in part, modeled on the Chapter 11 debt restructuring framework.

• The introduction of an OFC structure in Hong Kong is intended to further develop Hong Kong as an international asset management centre and fund domicile. • The OFC provides Hong Kong Type 9 licenced managers seeking to establish a corporate investment fund with a Hong Kong-domiciled alternative to establishing funds in traditional offshore domiciles, using the Private OFC model. • For...

•The Commission has identified a number of regulatory concerns with respect to private funds and discretionary accounts, in particular, funds with concentrated, illiquid and interconnected investments. •The Commission has reminded asset managers and their senior management to maintain appropriate standards of conduct and to strengthen their supervisory and compliance policies and procedures.

Market participants are currently only required to report short positions in 138 SEHK-listed securities (in accordance with the list of specified shares published by the Securities and Futures Commission (SFC) on 10 February 2017). With effect from 15 March 2017, the reporting requirement will apply to over 900 SEHK-listed securities (i.e. the list of Designated Securities, being automatch stocks

Key Points - - Clarification and new guidance relating to suitability obligations under the Code of Conduct. - Outlines the regulatory obligations of licensed or registered persons.

Key Points - - New Managers-In-Charge regime - Outlines the regulatory obligations and potential liabilities of the senior management of licensed corporations who do not conduct regulated activities - Deadlines for implementation of new regime for existing licensed corporations

Key Points - - All managers of SFC authorised funds (including overseas managers of SFC authorised funds) are required to enhance internal liquidity risk management processes and procedures in order to implement minimum SFC requirements. - The focus is on internal governance, product design, ongoing monitoring and stress testing. - Compliance is expected as soon as...

Key Points - - The SFC Enforcement Division is investigating several SFC-licensed brokerages for suspected inadequate AML internal controls. - Reminder of SFC areas of concern. - SFC licensees should ensure that proper internal AML measures are implemented.

Key Points - - Amended Hong Kong Securities and Futures Ordinance expands existing type 9 Regulated Activity (Asset Management) to cover management of OTC derivative products. - A Type 9 licenseholder managing OTC derivative products will be required to apply to the SFC and to meet new assessment criteria for such products (experience, internal compliance procedures), or will be...

The Hong Kong Securities and Futures Commission (the “SFC”) issued a consultation paper titled “Consultation Paper on the Proposed Amendments to the Professional Investor Regime and the Client Agreement Requirements” on 15 May 2013 (the “First Consultation”).

Under the current legal and regulatory regime relating to the establishment of investment funds in Hong Kong, an open-ended investment fund in Hong Kong can only take the form of a unit trust. This is mainly due to the restrictions on capital reductions in the Companies Ordinance (Cap. 622) (CO), which do not allow for a Hong Kong company to vary its share capital to meet shareholder subscription

In order to streamline and reduce the processing time of fund authorization processes, the Hong Kong Securities and Futures Commission (SFC) announced the launch of new initiatives to enhance the authorization process for new fund applications on 9 October 2015.

The Hong Kong Securities and Futures Commission (SFC) issued a consultation paper titled “Consultation Paper on the Proposed Amendments to the Professional Investor Regime and the Client Agreement Requirements on 15 May 2013” (the Consultation).