NewHong Kong market regulator cashes in from market rally as levy income jumps 143 per cent

Hong Kong’s market regulator, the Securities and Futures Commission, raked it in from the equities rally in the second quarter of 2015 as levies paid by investors on each share transaction soared 143 per cent in the three months ending in June.

The levies reached HK$561.13 million, against HK$231.37 million from the same period last year.

The average daily turnover of the stock market reached a record high at HK$200 billion in April, tripled the previous level when mainland mutual funds were allowed to invest in Hong Kong. Turnover remained strong until June and only dropped below HK$100 billion from the middle of July.

This helped the commission post a surplus of HK$249.71 million for the quarter ending in June, against a loss of HK$52.30 million a year earlier.

Staff costs and director fees reached HK$270.24 million for the second quarter, up 8.3 per cent from a year earlier as the SFC hired more people for its investigations.

During the quarter under the review, the SFC prosecuted two corporations and seven individuals for market misconduct and disciplined eight licensees. Proceedings were also resolved to recover HK$191 million of a collapsed private hedge fund’s assets for about 340 overseas investors.