Securities and Futures Commission (SFC)

The SFC welcomes the launch of the public consultation today by an industry working group led by the ICMA - International Capital Market Association on a voluntary code of conduct for ESG ratings and data products providers providing products and services in Hong Kong. The consultation will end on 17 June. Read the press release (https://lnkd.in/gEavTBSF) for details.

The #SFC warns the public of a suspicious investment plan relating to Big Boss Night Club 大富豪夜總匯投資方案, which may involve an offer to the public in Hong Kong to subscribe for or purchase shares in a company operating Big Boss Night Club (大富豪夜總匯) or New Big Boss Night Club (新‧大富豪夜總匯). This investment plan has been widely reported in the media. The document which sets out the details of the share offer has not been authorised by the SFC for registration or issue. The public should be cautious about “too-good-to-be-true” investment opportunities and stay vigilant when making investment decisions. Read our press release for details: https://lnkd.in/gNKtcpU8

The #SFC warns the public of a suspicious investment product named “LENA Network”, involving virtual asset-related staking, borrowing and lending arrangements, and claiming to offer high returns to investors. The product has not been authorised by the SFC for offering to the Hong Kong public. The SFC notes that information regarding the product and the product itself are accessible to the Hong Kong public via the internet. The public is warned to be cautious and sceptical about “too-good-to-be-true” investment opportunities, and stay vigilant when making investment decisions. Read our press release for details: https://lnkd.in/gMN3c2YX

As Swap Connect marks its first anniversary, a number of enhancement measures have been jointly announced by the People’s Bank of China, the Securities and Futures Commission and the Hong Kong Monetary Authority, to further promote the coordinated development of Mainland and Hong Kong derivatives markets. Since its launch, Swap Connect has provided investors with a convenient and efficient risk management tool to manage renminbi asset allocation. Its trading volume has grown with the active participation of Mainland and international investors. As of April 2024, 20 Mainland dealers and 58 overseas investors had conducted interest rate swap transactions with an aggregate notional amount of about RMB1.77 trillion. The average daily turnover calculated on a monthly basis had quadrupled over the past year. Read the joint press release for details: https://lnkd.in/gbFgCWmv 

As co-lead of the Green and Sustainable Finance Cross-Agency Steering Group’s Working Group on Sustainability Disclosures, the #SFC welcomes the Accounting and Financial Reporting Council (AFRC)’s launch of surveys on sustainability assurance to contribute to the development of Hong Kong’s sustainability disclosures ecosystem.  

The #SFC today warns the public of suspected virtual asset related fraud involving an entity operating under the name of “Quantum AI”. Quantum AI claims to provide cryptocurrency trading services with its underlying artificial intelligence (AI) technology. The SFC suspects that Quantum AI uses AI-generated deepfake videos and photos of Mr Elon Musk on its website and through social media to deceive the public that Mr Musk is the developer of Quantum AI’s underlying technology. The SFC also suspects that Quantum AI may have used a “news” website to disseminate false and misleading information about itself and promote its cryptocurrency trading services to the Hong Kong public. It claims on the “news” website that the Hong Kong public has been using its technology to trade in cryptocurrencies and is able to earn “too-good-to-be-true” returns. At the SFC’s request, the Hong Kong Police Force has taken steps to block access to the website of Quantum AI and take down relevant social media pages. The SFC also posted the aforesaid websites on the Alert List. Read the press release for details: https://lnkd.in/gZsikw_s

A member of the public has recently reported to the #SFC about imposters posing as the SFC’s senior executives claiming that the SFC had found irregularities in the recipient’s stock trading. The scammers further asked the recipient to provide more trading information. The SFC stresses that all such messages are fraudulent. As a financial regulator, the SFC does not solicit investments, provide any form of financial services nor contact the general public for personal financial matters. The SFC reminds the public not to respond to any requests on instant messaging apps or social media claiming to be from the SFC, and more importantly, not to transfer any funds or provide personal information to them. Refer to the SFC's Alert List (https://lnkd.in/gUuDceAi) and the Police’s Anti-Deception Coordination Centre’s webpage (http://bit.ly/3YUgcEQ) for latest alerts.

The #SFC warns the public of a suspicious investment product involving the ownership of horses under a horse farm scheme (牧場計劃) operated by A List Racing. The products have not been authorised by the SFC for offering to the Hong Kong public and are suspected to have breached the Securities and Futures Ordinance. The public is warned to be cautious and skeptical about “too-good-to-be-true” investment opportunities, and to stay vigilant when making investment decisions. Refer to the alert list for more details: https://lnkd.in/gUuDceAi

The China Securities Regulatory Commission previously announced five measures to further expand the mutual access between the capital markets of the Mainland and Hong Kong.   The #SFC’s Chairman Mr Tim Lui, CEO Ms Julia Leung and other senior executives today joined a seminar on Mainland-Hong Kong financial cooperation hosted by the HKSAR Government. Together with the Chief Executive Mr John Lee, Financial Secretary Mr Paul Chan, Secretary for Financial Services and the Treasury Mr Christopher Hui, Government officials from the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region, other Government officials and industry leaders, attendees of the seminar explored the opportunities those measures would bring about to Hong Kong’s capital markets.   See details about the measures: https://lnkd.in/gZa9zFtP  

The Government’s grant scheme to provide subsidies for setting up OFCs and REITs in Hong Kong has now been extended for another three years. See the #SFC press release for details: https://lnkd.in/gfk4Wzwn