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Securities law in Kowloon, Hong Kong, like other parts of Hong Kong, is governed by The Securities and Futures Ordinance (Cap. 571) ("SFO"). This overarching law presides over all aspects connected with securities, futures contracts and leveraged foreign exchange trading. The SFO enshrines protections for investors, facilitates market integrity and fortifies the strength of the Hong Kong financial market.
Securities law can be complex and arcane for the untrained. Any mistakes made in securities transactions, complying with regulations, or in disclosures can have substantial legal and financial implications. Those wanting to start a business raising capital through securities, entities involved in securities trade, or those facing securities litigation or regulatory investigation can all benefit from professional legal assistance. Lawyers can also help in understanding rights, responsibilities, and legal obligations under the prevalent securities laws.
The SFO primarily regulates Securities Law in Hong Kong. As noted above, it ensures the fair and transparent functioning of the securities and futures market in the city. It prohibits market misconduct, such as insider dealing, false trading, price rigging, and provides rules for the licensing and regulation of intermediaries. Other notable laws include the Companies Ordinance, which regulates the issuance and transfer of securities by companies, and the Listing Rules of the Hong Kong Stock Exchange, which oversee listed companies.
The consequences vary depending on the nature of the violation but can range from fines, imprisonment, to withdrawal of the license to operate in the securities market.
Insider trading happens when a person with inside information about a listed company's affairs trades in its securities with aims to make a profit or avoid a loss. It is considered illegal and strictly prohibited.
The listing requirements include having a good trading record for at least two ongoing years, maintaining sufficient working capital for at least 12 months, and complying with several other financial, operational and disclosure norms.
Investors are protected through mechanisms like compulsory disclosures, regulation of intermediaries, prohibition of market misconduct and proficiency requirements for market participants.
Yes, foreign companies can list their securities in Hong Kong, subject to meeting eligibility criteria and compliance with the listing rules.
Investors and companies can refer to the guidelines, code of conduct, FAQs and other resources available on the website of the Securities and Futures Commission (SFC) of Hong Kong. Sources like the Hong Kong Law Journal and online portals of leading law firms can also provide useful insights.
If you require legal assistance in securities, it's advisable to engage a law firm specializing in securities law in Hong Kong. They can guide you through the complexities of the law and can represent you effectively should you face any litigation or regulatory investigation. Do remember to check their credentials, experience, and discuss fees before proceeding.
