Hong Kong regulators vow strict compliance as Beijing tightens capital controls
Regulators stress that Hong Kong’s role as an international financial centre must support China’s broader financial development objectives
Hong Kong’s financial regulators have pledged to uphold strict compliance standards and crack down on illicit activity, as Beijing intensifies efforts to tighten oversight of cross-border capital flows.
“We will always be steadfast guardians of the market, driving development and encouraging innovation while never compromising on our bottom line,” said Kelvin Wong Tin-yau, chairman of the Securities and Futures Commission (SFC) of Hong Kong.
“Through rigorous regulatory systems, forward-looking guidance, decisive enforcement, cross-border coordination, and investor education, we resolutely defend the lifeline of market quality and credibility.”
Wong made the remarks at the ninth Caixin Summer Summit in Hong Kong on Friday, weeks after Beijing penalised Hong Kong-based Tiger Brokers, Futu Securities International and Longbridge Securities for allowing mainland Chinese investors to trade overseas stocks without the required licences.
The regulatory action was followed by moves from several Hong Kong banks, including their mainland branches, to tighten requirements for mainland residents seeking to open offshore accounts.
In line with the tightening, the Hong Kong Monetary Authority instructed banks to require prospective investment-account holders to declare that the funds originated outside mainland China.