Hong Kong Recent Enforcement Actions: Cases and Consequences

This article provides an overview of recent enforcement cases noteworthy to listed companies in Hong Kong, categorized by the nature of misconduct rather than the regulatory authorities responsible. Drawing on actions by the Securities and Futures Commission (SFC), The Stock Exchange of Hong Kong Limited (HKSE), the Independent Commission Against Corruption (ICAC), the Hong Kong Competition Commission, and the Companies Registry, it covers topics like breaches of directors’ duties, internal control failures, market misconduct, fraud, corruption, anti-money laundering violations, competition law breaches, company law compliance, and investor compensation cases. This thematic approach highlights common compliance challenges and the critical need for robust governance to protect market integrity and investor interests.

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• Hong Kong Independent Commission Against Corruption’s Promotion and Enforcement for Integrity in the Banking Industry
• U.S. Law Firm Fined GBP300,000 by Solicitors Disciplinary Tribunal of England and Wales for Anti-money Laundering Breaches
• Hong Kong Securities and Futures Commission Suspends Finfluencer for Unlicensed Investment Advice
• Hong Kong Securities and Futures Commission Releases Quarterly Report Showing Strong Momentum in Hong Kong’s Capital Markets Towards End of 2024
• Hong Kong Insurance Authority Secures First Conviction Against Licensed Insurance Broker for Failure to Submit Audited Financial Statements
• The China Securities Regulatory Commission Issues “Guideline No. 11 on the Supervision of Listed Companies — Matters Related to the Bankruptcy Reorganization of Listed Companies
• Hong Kong Accounting and Financial Reporting Council Publishes Report Digest: Reminders for 2024/25 Year-End Audits
• Hong Kong Exchanges and Clearing Limited Signs MOU with CMU OmniClear to Enhance the Post-Trade Securities Infrastructure of Hong Kong’s Capital Markets
• OTC Clearing Hong Kong Limited to Accept China Government Bonds, Policy Bank Bonds as Collateral for All Derivatives from 21 March 2025

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• Establishing an Effective Regulatory Ecosystem for Fund Management in Hong Kong
• Recent Trend of Privatization in Hong Kong
• Hong Kong Government Opens the New Capital Investment Entrant Scheme for Application
• Hong Kong Securities and Futures Commission’s Quarterly Report Reveals Surge in Net Inflows to Investment Funds in Hong Kong
• Hong Kong Government Adjusts Business Registration Fees and Waives the Business Registration Levy
• Hong Kong Government Gazettes Inland Revenue (Amendment) Bill (Tax Concessions and Two-tiered Standard Rates) Bill 2024 with Tax Concessions and New Rate Structure
• Hong Kong Accounting and Financial Reporting Council Reprimands Chan Steven Kwok Keung and Sino Corp CPA Limited and Imposes Pecuniary Penalties Totaling HK$100,000 for CPA Misconduct
• Hong Kong Securities and Futures Commission and Hong Kong Exchanges and Clearing Limited Collaborate in Enforcement Action Against Two Former GEM-Listed Company Directors for Misconduct
• Hong Kong Securities and Futures Commission Reminds Public Virtual Asset Trading Platforms Application Period Has Ended Under Transitional Arrangements
• Cayman Islands Updates Beneficial Ownership Regime – Balancing Transparency and Privacy

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• Hong Kong’s Role in Environmental, Social, and Governance ESG Digitalization and Inclusion under the Belt and Road Initiative
• Stock Exchange of Hong Kong Limited’s Update on Consultation on Enhancement of Climate Disclosures under Environmental, Social, and Governance ESG Framework
• Hong Kong Securities and Futures Commission Supports and Sponsors the Development of an Industry-Led Voluntary Code of Conduct for Environmental, Social, and Governance ESG Ratings and Data Products Providers
• Hong Kong Competition Commission Takes Estate Agencies’ Price-Fixing Cartel Case to Hong Kong Competition Tribunal
• Concealing Any Conflict of Interest Related to One’s Official Duties in Order to Benefit Oneself or Associates May Constitute A Violation of Hong Kong’s Prevention of Bribery Ordinance or Other Criminal Offences
• Stock Exchange of Hong Kong Limited Publishes Consultation Paper on Proposed Amendments to Listing Rules Relating to Treasury Shares and Guidance Letter on Issuers’ Automatic Share Buy-back Programs
• Hong Kong Securities and Futures Commission Consults Further on Proposed Amendments for Implementing an Uncertificated Securities Market
• Hong Kong Monetary Authority Publishes the “e-HKD Pilot Programme Phase 1 Report”
• Gazettal of Bankruptcy and Companies Legislation (Miscellaneous Amendments) Ordinance 2023 (Commencement) Notice 2023

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• Hong Kong Accounting and Financial Reporting Council Sets out Its Position on Documentation of an Auditor’s Work on “Other Information” Included in the Annual Report of a Listed Entity
• Hong Kong Exchanges and Clearing Limited Publishes Regulation Newsletter for Listed Issuers : Disclosure of Business Valuations in Transactions
• Hong Kong Securities and Futures Commission Consults on Revisions to Takeovers and Share Buy-Back Rules
• Hong Kong Exchanges and Clearing Limited Launches Hong Kong Dollar – Renminbi Dual Counter Model and Dual Counter Market Making Programme
• Hong Kong Securities and Futures Commission Concludes Consultation on Regulation of Virtual Asset Trading Platforms
• Hong Kong Securities and Futures Commission Concludes Consultation on the Position Limit Regime

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• Implications of the New Mainland Rules for Overseas Listings to Hong Kong Takeover Transactions
• The Stock Exchange of Hong Kong Limited Publishes Consultation Paper on Rule Amendments Following Mainland China Regulation Updates and Other Proposed Rule Amendments Relating to PRC Issuers
• The Hong Kong Exchanges and Clearing Limited Publishes Enforcement Bulletin to Remind Directors of their Duties to Safeguard the Assets or Interests of Issuers
• Hong Kong Exchanges and Clearing Limited Publishes an Updated Guide on General Meetings
• Hong Kong Exchanges and Clearing Limited Publishes Frequently Asked Questions on PRC’s New Filing Requirements for Overseas Listings and Securities Offerings by Mainland companies 118-2023

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• Project e-HKD and Modernizing the Concept of Using Hong Kong Law as Governing Law in Contracts – Why More Contracts Should be Governed by Hong Kong Law in Future
• Takeovers Panel of the Hong Kong Securities and Futures Commission Rules on the Price for the Mandatory General Offer for Suncity Group Holdings Limited
• The Financial Services Development Council of Hong Kong Publishes Recommendations in relation to Cementing Hong Kong’s Role as a Premier Private Wealth Management Hub in Asia
• Hong Kong Monetary Authority Announces the Launch of the Enhanced Competency Framework on Compliance – Hong Kong on the Right Track to Proactively Build Talent

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• If Tobacco Advertisements are Undesirable and Banned, Should Cryptocurrency Advertisements be Banned?
• Hong Kong Exchanges and Clearing Limited Signs New Strategic Cooperation Agreement with Shenzhen Stock Exchange to Support Greater Bay Area Development
• Hong Kong Monetary Authority Issues Discussion Paper on Crypto-assets and Stablecoins
• Closer Capital Markets Cooperation for Greater Synergy Between the Mainland and Hong Kong — Speech at the 15th Asian Financial Forum 2022 by Dr. Fang Xinghai, Vice Chairman of China Securities Regulatory Commission

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• The Growing Significance of Online Platform to Facilitate Shareholders’ Meetings — Observations from the Case Re Chong Hing Bank Limited (創興銀行有限公司)
• The Stock Exchange of Hong Kong Limited Publishes Conclusions on Reforms to Enhance Listing Regime for Overseas Issuers
• Hong Kong Monetary Authority Takes Disciplinary Actions Against Four Banks for Contraventions of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance
• The China Securities Regulatory Commission Vice Chairman Fang Xinghai Commenting on China-ASEAN Capital Market Cooperation at the 2021 China-Singapore (Chongqing) Strategic Connectivity Demonstration Project Financial Summit

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• Comparative Review of Regulators’ Approaches Towards Financial Institutions’ Due Diligence Against Potential Frauds, Bribery and Other Red Flags
• Hong Kong Monetary Authority Announces a List of Eligible Banks in Hong Kong for Launching the Cross-boundary Wealth Management Connect Pilot Scheme
• The People’s Bank of China and the Hong Kong Monetary Authority Sign the “Memorandum of Understanding on Fintech Innovation Supervisory Cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area”
• The Stock Exchange of Hong Kong Limited Launches e-Learning on Continuing Obligations
• Hong Kong Insurance Authority Welcomes the Inaugural Issuance of Insurance-linked Securities in Hong Kong
• China Securities Regulatory Commission Announced Financial Derivatives Accessible to Qualified Foreign Investors

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• Steering Committee on Bond Market Development in Hong Kong Convenes First Meeting – Rethinking Green Finance – Should We Have “Carbon Connect”?
• The Stock Exchange of Hong Kong Limited Implements Disciplinary Action against Coolpad Group Limited (Stock Code: 2369) and Six Former Directors
• Hong Kong Exchanges and Clearing Limited to Launch Derivatives Product on New MSCI China A 50 Connect Index
• Hong Kong Exchanges and Clearing Limited Signs Memorandum of Understanding with Guangzhou Futures Exchange
• The Stock Exchange of Hong Kong Limited Implements Disciplinary Action against a Former Director of Grand Peace Group Holdings Limited (Delisted, previous Stock Code: 8108)
• Hong Kong Exchanges and Clearing Limited to Collaborate with Hong Kong Science and Technology Parks Corporation on Biotech, Fintech Initiatives
• Hong Kong Securities and Futures Commission Concludes Consultation on Climate-Related Risks in Funds
• Hong Kong Securities and Futures Commission Approves the Launch of an A shares Index Futures Contract by the Hong Kong Exchanges and Clearing Limited
• Hong Kong Securities and Futures Commission and Police Conduct Joint Operation Against Listed Company and Senior Executives in HK$450 Million Corporate Fraud Case
• Hong Kong Securities and Futures Commission Alerts the Public of Unauthorized Investment Schemes
• Hong Kong Securities and Futures Commission Suspends Cheung Man Chit for Two Years
• U.S. Federal Court Orders Multi-Million Dollar Ponzi Scheme Fraudster Permanently Banned from Trading and Registering with U.S. Commodity Futures Trading Commission
• U.S. Commodity Futures Trading Commission Orders a Man to Pay US$150,000 for Registration Violation and Violations of Commodity Pool Operator Regulations
• U.S. Federal Court Orders a Man and Two Companies to Pay Over US$15.6 Million for Forex Fraud and Registration Violations
• U.S. Commodity Futures Trading Commission Amends Existing Brexit-Related Relief to Provide Market Certainty
• U.S. Securities and Exchange Commission Announces Three Actions Charging Deficient Cybersecurity Procedures
• U.S. Securities and Exchange Commission Requests Information and Public Comment on Matters Related to the Use of Digital Engagement Practices by Broker-Dealers and Investment Advisers
• U.S. Securities and Exchange Commission Charges Global Crypto Lending Platform and Top Executives in US$2 Billion Fraud
• U.S. Securities and Exchange Commission Charges Underwriter and Its Former CEO With Misconduct In Muni Bond Tender Offer
• U.S. Securities and Exchange Commission Charges Healthcare Services Company and CFO for Failing to Accurately Report Loss Contingencies as part of Continuing Earnings Per Share Initiative
• Shenzhen Stock Exchange Solicits Opinions on the Revision of the Implementation Rules on the IPO Stock Issuance and Underwriting Business on the ChiNext Board
• Shanghai Stock Exchange Solicits Public Opinions on the Revision of Business Rules related to the Issuance and Underwriting of Shares on the STAR Market
• Singapore Exchange Securities Trading Limited Listings Disciplinary Committee Reprimands Astaka Holdings Limited, its Present Executive Director and Former CEO Zamani Bin Kasim, and its Former CFO Lee Shih Yi
• Singapore Exchange Regulation Charts the Way Forward on Mandatory Climate Reporting, Wants Board Diversity Disclosures
• Australian Securities and Investments Commission Consults on Payment for Order Flow Rule Amendments
• Australian Securities and Investments Commission Publishes Corporate Plan 2021-25
• The Financial Conduct Authority of the United Kingdom Warns Insurance Firms over Product Governance Rules Deadline
• The Financial Conduct Authority of the United Kingdom Reminded Firms about Potential Financial Crime Risks linked to Afghanistan

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• Hong Kong Special Administrative Region Government Welcomes Consensus Largely Reached on BEPS 2.0 Framework, Including the Global Minimum Tax Rate Proposal, on the Same Date of Gazetting of the Securities and Futures (Amendment) Bill 2021 and the Limited Partnership Fund and Business Registration Legislation (Amendment) Bill 2021 Providing for New Fund Re-domiciliation Mechanisms
• The Stock Exchange of Hong Kong Limited Implements Disciplinary Action against Alltronics Holdings Limited (Stock Code: 833) and Ten Directors
• The Stock Exchange of Hong Kong Limited Implements Disciplinary Action against IntelliCentrics Global Holdings Ltd (Stock Code: 6819) and Two Executive Directors
• The Stock Exchange of Hong Kong Limited Implements Disciplinary Action against China Fortune Investments (Holding) Limited (Stock Code: 8116) and Nine Directors
• The Stock Exchange of Hong Kong Limited Announces the Cancellation of Listing of Inno-Tech Holdings Limited (In Liquidation) (Stock Code: 8202)
• The Stock Exchange of Hong Kong Limited Announces the Cancellation of Listing of Chinese Food and Beverage Group Limited (Stock Code: 8272)
• The Stock Exchange of Hong Kong Limited Publishes Revised Policy Statement on the Enforcement of the Listing Rules and Sanctions Statement
• Hong Kong Securities and Futures Commission Publishes New Guidance on ESG Fund Disclosures
• Hong Kong Court of Appeal Grants Hong Kong Securities and Futures Commission HK$622 Million Compensation Orders against Former Directors of EganaGoldpfeil (Holdings) Ltd
• Hong Kong Securities and Futures Commission Reprimands and Fines Raymond Leung Tak Shing HK$400,000 for Breaches of Anti-Money Laundering Regulatory Requirements
• Hong Kong Securities and Futures Commission Bans Lau Kwo for 12 months
• Hong Kong Securities and Futures Commission and the Independent Commission Against Corruption Search a Listed Company and an Underwriter
• U.S. Commodity Futures Trading Commission Charges Three Individuals and Three Companies with Fraud in Multimillion-Dollar Precious Metals Scheme
• U.S. Commodity Futures Trading Commission Issues Interpretation to Swap Dealers Regarding Calculating Capital Requirements
• U.S. District Court Sanctions a Man for Fraudulent Scheme Attempting to Profit from COVID-19
• U.S. Securities and Exchange Commission Charges Amec Foster Wheeler Limited With Foreign Corrupt Practices Act Violations Related To Brazilian Bribery Scheme
• U.S. Securities and Exchange Commission Charges Electronic Trading Platform for Operating As An Unregistered Broker-Dealer
• U.S. Securities and Exchange Commission Charges Self-Proclaimed Real Estate “Dealmaker” With Multiple Offering Frauds and Misappropriation of Investor Funds
• U.S. Securities and Exchange Commission Charges Finance Employee and Friend With Insider Trading
• U.S. Securities and Exchange Commission Charges Hedge Fund Trader in Lucrative Front-Running Scheme
• U.S. Securities and Exchange Commission Charges Company and Two Executives for Misleading COVID-19 Disclosures
• Singapore Exchange and Platts Partner to Provide Commodities Data and Content
• Countdown to Singapore International Ferrous Week
• The Financial Conduct Authority of the United Kingdom Consults on Reforms to Improve the Effectiveness of UK Primary Markets
• Australian Securities and Investments Commission Consults on Amendments to Market Integrity Rules
• Shenzhen Stock Exchange Actively Serves the Connection between Swiss Tech Start-ups and Capital Resources, Boosting Sino-Swiss Regular Technological Cooperation
• Shenzhen Stock Exchange Adjusts Downward the Handling Fee of Fund Transactions to Support the Development of the Fund Market

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