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Regulation of the Hong Kong Market

In what way is the regulatory role of HKEX different from that of the Securities and Futures Commission?

The Securities and Futures Commission (SFC) is an independent statutory body responsible for regulating the market, safeguarding market integrity, and enforcing securities and futures market legislation. Parties regulated by the SFC include Hong Kong Exchanges and Clearing Limited (HKEX) and its subsidiaries (including the stock and futures exchanges and associated clearing houses), financial market intermediaries (namely securities dealers which include Exchange Participants; sponsors; share registrars; fund managers; and investment advisers) and investors.

The SFC’s statutory regulatory objectives are:

to maintain and promote the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures industry;
to promote understanding by the public of the operation and functioning of the securities and futures industry;
to provide protection for members of the public investing in or holding financial products;
to minimise crime and misconduct in the securities and futures industry;
to reduce systemic risks in the securities and futures industry; and
to assist the Financial Secretary in maintaining the financial stability of Hong Kong by taking appropriate steps in relation to the securities and futures industry.

Regulation of takeovers, share repurchases and privatisations, which may involve investor conduct, is also the responsibility of the SFC.

HKEX is the operator of Hong Kong’s central securities and derivatives marketplace and the front-line regulator of listed issuers (including listed companies). In this role, HKEX regulates listed issuers; administers listing, trading and clearing rules; and provides services at the wholesale level to customers of the exchanges and clearing houses, including issuers and intermediaries (namely investment banks or sponsors, securities and derivatives brokers, custodian banks and information vendors) who service investors directly. Services provided by the exchanges and clearing houses include trading, clearing and settlement, depository and nominee services, and information services.

For more SFC and HKEX regulatory information, please visit the SFC website at www.sfc.hk and the “How We Regulate” section under "Listing Regulations" of the HKEX website.

Getting Started for individual investors

Where can investors get the lists of listed companies’ directors and shareholders?

Investors can check the list of directors from a listed company’s annual report or latest announcements or circulars. They can also download the list or search by stock code, listed company’s name or director’s name from the List of Directors under the Issuer-related Information section on the HKEXnews website.

For the list of shareholders, any individual and shareholders of a listed company may inspect the register of members (ROM) at the share registrar of the listed company. The registered shareholders’ inspection is free of charge, while non-registered shareholders will have to pay a service charge to the share registrar for every inspection.

Investors should note that at present over 70 per cent of shares on the market in quantity terms are deposited into HKEX’s Central Clearing and Settlement System (CCASS) and all the shares held in CCASS are registered in the name of HKSCC Nominees Limited, a wholly-owned member of the HKEX group. Therefore, HKSCC Nominees Limited appears as one of the major shareholders on the ROM of most Hong Kong-listed companies. To increase market transparency, HKEX introduced a new online CCASS Shareholding Disclosure service on 28 April 2008. With the new service, the public is able to look up the total number of shares held in a company listed in Hong Kong on a specified date in the past year by each CCASS Participant and Investor Participant who has consented to the disclosure by entering the date and the company’s stock code in the CCASS Shareholding Search on the HKEXnews website.

Furthermore, in accordance with Part XV of the Securities and Futures Ordinance (SFO), any individual holding a 5 per cent interest or more in a listed company is regarded as a substantial shareholder and required to inform the market through the Stock Exchange within three business days of any transaction resulting in a change in his/her shareholding of a ratio that crosses a certain whole percentage number. Besides, directors and chief executives of a listed company must disclose their interests in accordance with Part XV of the Securities and Futures Ordinance (SFO). Investors can refer to Disclosure of Interests under the Shareholding Disclosures section on the HKEXnews website for the information.

How can investors contact listed companies?

Investors wishing contact a listed company may refer to the share registrar for the address and contact details of a listed company.

The share registrar is a company employed by a listed company to maintain a registrar of its shareholders in Hong Kong, and handle transfers of physical shares and investors' enquiries, etc. Share registrars' services include dispatching corporate communications including financial reports and shareholders circulars on behalf of listed companies, to registered shareholders, distributing cash and scrip dividends, handling claims for uncollected benefits, share transfers and issuing replacement certificates.

The information of the share registrar of a listed company is available at the “List of Equities Securities” in “Equities” under the section headed “PRODUCTS” on the HKEX website. Investors may enter a stock code on the left hand side to narrow down the results and click onto the respective company name to obtain relevant information. Investors may also refer to the annual report of a listed company for the address or ask the telephone company for its telephone number.

The List of Equities Securities at the HKEX website also provides company information, including the name of the chairman and address of the principal office. Without a listed company's authorisation, HKEX cannot divulge the company's other contact details.