The Securities and Futures Commission (SFC) is introducing new disclosure requirements for short positions in certain Hong Kong listed shares. Background Part XV of the Securities and Futures Ordinance (Part XV) requires disclosure of short positions of over 1% held by substantial (5% or more) shareholders in a listed company, and of all short positions held by directors and chief executives of listed companies ...
The Government of Guangdong Province has recently put forward and is currently seeking public opinions on a series of draft labour law related regulations, namely, the Provisions of the Implementation of the Labour Contract Law of the People's Republic of China in Guangdong Province ( 《广东省实施 〈中华人民共和国劳动合同法〉若干规定》)
What is CEPA? The Closer Economic Partnership Arrangement ("CEPA") is a free trade agreement between Mainland China and Hong Kong that offers Hong Kong products, companies and residents preferential access to the Mainland market. Many of the preferences go beyond China's WTO concessions. CEPA is not a closed agreement and both sides hold regular meetings on further concessions and the details for implementation ...
After being reviewed four times in three years, the Social Insurance Law of the People’s Republic of China (the “Social Insurance Law”) was finally adopted by the Standing Committee of the National People’s Congress of China on 28 October 2010. Its implementation rules (the “Implementation Rules”) were subsequently released by the Ministry of Human Resource and Social Security (“MHRSS”) on 29 June 2011. Both the Social Insurance Law and the Implementation Rules came into force on 1 July 2011 ...
Early last year, the State Administration for Industry and Commerce (“SAIC”) and the Ministry of Public Security of the People’s Republic of China (“PRC”) jointly issued a Circular on Further Strengthening Administration of the Registration of Resident Representative Offices (“RO”) of Foreign Enterprises (“Circular”) ...
Ministry of Commerce ("MOFCOM") simplifies the approval process for foreign investments in sales projects using the Internet or vending machines Since 2004, following MOFCOM's release of the "Measures for the Administration of Foreign Investment in the Commercial Sector" the distribution industry has been opened to foreign investment ...
The People's Republic of China, a party to the Kyoto Protocol (2005), has been actively promulgating "greener" policies to improve China' environment and reduce carbon emissions. These green steps are creating potential new investment opportunities for foreign investors as China seeks to become more energy efficient ...
As an initiative to develop Islamic finance and Islamic fund management in Hong Kong, the SFC signed a Declaration on Mutual Cooperation on Development of Islamic Capital Market and Islamic Collective Investment Schemes (Declaration) with the Securities Commission of Malaysia (MSC) on 9 November 2009, which provides a framework for the mutual recognition of Islamic funds (excluding hedge funds, wholesale funds and real estate investment trusts as defined in the
Chapter 10.2 of the SFC's Code on Unit Trusts and Mutual Funds (Code) requires that pricing errors for SFC authorised funds should be corrected as soon as possible and all necessary action should be taken to avoid errors occurring in the future. If the pricing error results in an incorrect price of 0 ...
As a consequence of the recent wave of successful SFC insider dealing criminal prosecutions, responsible officers (ROs) are asking what they need to do to protect their companies and themselves. ROs are obliged to take all reasonable measures to ensure that proper safeguards exist to prevent the licensed corporation and its employees from insider dealing ...
Following the public consultation early this year on proposals for a legislative framework to upgrade the current anti-money laundering (AML) regime in the financial sector, Hong Kong's Financial Services and Treasury Bureau (FSTB) has launched a second-round consultation ...
In the case of Leung Ka Lau & Ors v The Hospital Authority [2006] HKEC 399, doctors working in public hospitals successfully claimed compensation in the Court of First Instance for "rest days" and "holidays" for which they had been deprived but lost their claim on compensation for "overtime" worked (Please refer to our newsletter issue 2006.2) ...
The decision by presiding judge William Stone has overruled the Labour Tribunal decision in January 2009 and allowed the appeal of Cathay Pacific. The Tribunal presiding officer held that line duty and ground duty allowances could be characterized as "daily wages". They were recurrent in nature, calculated on a daily basis and directly related to the number of hours worked ...
Winning the case against its flight attendants, Cathay Pacific loses against a group of pilots they sacked during a 2001 industrial dispute. The airline, one of Asia's biggest, was ordered to pay damages to each of the 18 pilots whose employment had been terminated by Cathay Pacific ...
The statutory Minimum Wage Bill (the "Bill") was gazetted on 26 June 2009 and tabled at the Hong Kong Legislative Council on 8 July 2009. The Bill will require every employer to pay employees minimum wage at an hourly rate, however it does not seek to regulate the number of hours that employees spend at work ...
A number of laws and regulations have been promulgated in the past few years to introduce a series of changes to the existing PRC Labour Law, among which the key legislations are the PRC Labour Contract Law effective on 1 January 2008 and its detailed implementing regulations effective on 18 September 2008 ("Laws") ...
What is CEPA? The Closer Economic Partnership Arrangement ("CEPA") is a free trade agreement between Mainland China and Hong Kong that offers Hong Kong products, companies and residents preferential access to the Mainland market. Many of the preferences go beyond China's WTO concessions. CEPA is not a closed agreement and both sides hold regular meetings on further concessions and the details for implementation ...
China has traditionally restricted foreign investment in the retail and wholesale sectors with the aim of nurturing strong domestic players before their foreign counterparts would be allowed to enter the country. Since becoming a member of the World Trade Organisation, China has gradually opened up its distribution sector to foreign investment ...
China's Anti-monopoly Law ("AML") became effective on 1 August 2008. This new piece of legislation has attracted attention worldwide because of its potential impact on foreign investments in China. This article will outline the key activities prohibited by AML and explain how AML will affect foreign investors. Three main types of activities are specified under AML, namely (1) monopoly agreements, i.e ...
Best Practices & Standards The hedge fund industry has experienced trying times over the past few months. Year-end redemption requests have flooded the sector. Scandals such as the so-called "ponzi" scheme allegedly carried out by Bernard Madoff resulting in billions of dollars in losses have shaken the industry ...
Following certain onsite inspections, the Hong Kong Securities and Futures Commission (SFC) issued a Circular in October 2008 setting out various standards of conduct and control procedures that the SFC views as being "generally expected" of a Hong Kong-licensed hedge fund manager (HKHFM) ...
On 29 June 2003, the Mainland government and the Hong Kong government signed the Closer Economic Partnership Arrangement (“CEPA”), which offers investors from Hong Kong a step ahead of investors from other countries to explore the Mainland market in various business sec-tors. In essence, CEPA is a free trade agreement between Mainland China and Hong Kong that offers Hong Kong products, companies and residents preferential access to the Mainland market ...
As a consequence of the complexity of Hong Kong’s disclosure of interests regime, local substantial shareholders and global investment houses alike frequently fall foul of its provisions. Even robust monitoring and reporting systems can fail to cater to idiosyncrasies of the Hong Kong regime ...
