Posted inRegulation

Hong Kong and China regulators sign

In final preparation for the stock connect programme, Carlson Tong, Hong Kong's top regulator, has signed an agreement with his counterpart in China for cross-border information sharing and joint investigation of suspected misconduct.
On Friday, Tong, chairman of Hong Kong’s Securities and Futures Commission, signed a memorandum of understanding with Xiao Gang, chariman of the China Securities Regulatory Commission, detailing the measures.
“The MoU establishes an enhanced platform for information sharing, alerts, investigative assistance and joint investigations for both the SFC and the CSRC so together we can act to protect the integrity of both Hong Kong and Shanghai markets under the stock connect pilot programme ,” said Tong.
The CSRC’s Gang added that the MoU “serves as a prerequisite for the smooth commencement of the stock connect pilot programme”.
Under the MoU, the SFC and the CSRC have agreed to:
Provide for the sharing of information and data of risks and alerts about potential or suspected wrongdoing in either the Hong Kong or Shanghai stock markets under Stock Connect;
Establish a commitment and a process for joint investigations;
Ensure complementary enforcement action can be taken where there is wrongdoing in both jurisdictions; and
Make sure enforcement actions in both jurisdictions operate to protect the investing public of both the mainland and Hong Kong, including actions that may be necessary to provide financial redress or compensation to affected investors.
The stock connect is expected to begin this month, though no launch date has been announced.

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