The Securities and Futures Commission (SFC) today hosted the SFC Regulatory Forum 2021. Industry representatives and global investors joined Mainland and Hong Kong regulators to discuss the future of Hong Kong’s unique role intermediating financial flows between China and the rest of the world.

Mr Paul Chan Mo-po, Financial Secretary of the Hong Kong Special Administrative Region, delivered the keynote address. "Despite the daunting circumstances that have plagued us for nearly two years now, our financial system remains stable and remarkably resilient,” Mr Chan said. “It is important that we continue to uphold, and review, our regulatory mechanisms to ensure the smooth functioning of our financial system and the overall stability of Hong Kong.”

“Today was an opportunity to take stock of the significant changes in the global financial landscape and what they mean for Hong Kong’s future as China’s international financial centre,” said Mr Tim Lui, the SFC’s Chairman. “It is clear that Hong Kong’s status as a leading global financial centre is here to stay, and Hong Kong is now even better placed than before to be the hub for a range of investment flows between the Mainland and overseas markets.”

To set the scene, representatives of global firms joined Mainland and Hong Kong regulators for a panel discussion on the changing nature of Hong Kong’s role as the global financial industry gains greater access to the Mainland, capital flows remain strong and geopolitical tensions contribute to uncertainty. Panellists noted that a focus on quality and innovation have promoted resilience and sustainability in the Hong Kong market, and sound fundamentals and a robust regulatory framework have helped shore up investor confidence.

“Our core work as a regulator is to keep markets orderly, fair and clean,” said Mr Ashley Alder, the SFC's Chief Executive Officer. “Much has changed since the last SFC Regulatory Forum was held in 2018, but by doubling down on our front-loaded approach to fraud and taking regulatory action to stay out in front of emerging risks, we have maintained the high quality of our markets in the face of unexpected challenges and heightened volatility.”

Another panel considered the opportunities arising from the expansion of mutual market access between the Mainland and Hong Kong and further market integration in the Greater Bay Area, and how firms may need to manage greater regulatory, operational and geopolitical risks.

Other discussions focussed on the progress of regulatory initiatives to bolster Hong Kong’s position as an international asset and wealth management centre and address misconduct and other issues with listed companies and initial public offerings.

To conclude the event, local law enforcement representatives and experts discussed how the increasing interaction between technology and the financial services industry has given rise to new kinds of fraud and misconduct which have made investigations and enforcement efforts more complex and challenging.

Over 1,100 participants joined the hybrid event held at the Hong Kong Convention and Exhibition Centre and online.