Submissions and Reports

The Chamber welcomes the HKEX’s proposals to enhance the GEM Listing regime in light of the recent significant decline of listings. We nevertheless suggest that greater strides should be taken to attract GEM’s main intended beneficiaries – growth and small and medium sized companies (SMEs), who are crucial contributors to Hong Kong’s economy and prosperity as an international financial city – so as to facilitate the success of such reforms. Recommendations on how to achieve such objectives, comprising cost reduction and relaxing financial eligibility requirements for GEM listing, reducing the profit requirement for entry to the Main Board, as well as enhanced promotion and outreach, are also outlined in the response.

The Chamber welcomes the SFC’s introduction of a new regulatory framework for licensed virtual asset trading platform (VATP) service operators as well as proposals to allow retail investors to access services delivered by the former, provided that there is balance between supporting the development and demands in virtual asset trading, and providing robust protection to investors and market integrity. At the same time, the Chamber notes that there exist differences in industry views on the necessity and sufficiency of certain proposed investor protection mechanisms.

The Chamber welcomes the Government’s initiative to update the Talent List to address Hong Kong’s acute talent shortage situation and sustain a competitive economy, and puts forward recommendations on the necessary high-skilled professions for inclusion in the same.

The Chamber welcomes the HKLRC’s proposals to introduce a bespoke law that deals with the proliferation of cyber-dependent crimes given the risks of such illegal acts on Hong Kong’s businesses. The Chamber has also called for a balanced approach in the design of the new law so that other than the objective of protecting public interest, consideration should also be given to upholding business’ legitimate needs.

The Chamber welcomes the notion of an e-HKD as a digital legal tender given the associated benefits that would go towards consolidating the city’s standing as an international financial centre. The Chamber has also put forward design and implementation recommendations on the development of such a Central Bank Digital Currency.

The nature of the consultation, which concerns copyright owners and users, mean that the Chamber was unable to achieve unanimity when responding to some of the Government’s proposals to update Hong Kong’s existing copyright law. As such, the Chamber has called for a balanced approach that takes into account the rights of owners and users, while reflecting views from both perspectives on such proposals as adopting an exhaustive approach on copyright exceptions and introduction of a judicial site-blocking mechanism.

The Chamber supports the issuance of a set of guidelines to help businesses in the relevant sectors avoid potential damage to underground telecommunications lines. At the same time, such guidance should be practicable and not overly prescriptive. The Chamber has also put forward recommendations on other aspects of the draft guidelines while noting that more time should have been made available for collecting feedback.

The Chamber agrees with the Government that there is the need to address the abuse of SIM Cards for criminal purposes, but suggests that consideration should also be given to attendant issues such as data privacy implications and efficacy of a mandatory registration system. In light of the social impact that such regulatory changes may bring, the Chamber recommends that efforts be made to better define the rights and responsibilities of stakeholders, namely, users, operators, and regulators under the proposed programme.

The Chamber agrees with the Law Reform Commission’s proposals to relax the current prohibition of outcome-related fee structures for arbitration to enhance Hong Kong’s competitiveness as an arbitration centre, but suggests that a phased approach be adopted to the implementation of flexible fee structures. Due consideration should also be given to the protection of the interests of smaller businesses opting for such a means of dispute resolution.

In response to an invitation by the LegCo Panel on Commerce and Industry to submit views on innovation and technology development and re-industrialization policy in Hong Kong, the Chamber has put forward a number of recommendations. These include, among other things, enhancing existing regulations and funding programmes, grooming local and attracting international talent, and creating synergies within the Greater Bay Area through a division of labour approach.