Submissions and Reports

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.

The Chamber does not agree with the HKEX’s proposal to increase the profit requirement for a Main Board listing mainly because such a requirement would not be in the interests of smaller businesses in particular those outside of the New Economy. Rather, a comprehensive review of the existing listing requirements for both the Growth Enterprise and Main Boards including those on the transfer from the former to the latter should be carried out to address any intrinsic inefficiencies and promote Hong Kong’s attractiveness as a place to list.

In response to the Government’s proposals to expand the scope of the Anti-Money Laundering Ordinance to include virtual asset services providers and dealers of precious metals and stones in Hong Kong, the Chamber has called for greater clarity on such issues as the uneven approach to regulating the two sectors in question, and rationale behind the prescribed penalties, among others. It also raised the issue of whether the Securities and Futures Commission should share regulatory responsibilities with its counterparts such as the Hong Kong Monetary Authority.

The Chamber does not object to the Commission's proposal to amend its guidelines under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, but suggests that any additional compliance requirements should be facilitative and reasonably practicable to achieve.

The Chamber supports the HKEX’s proposals to go paperless although, in the process of doing so, consideration should be given to maintaining paper-based options so that some degree of flexibility is provided to the investing public.

The Chamber welcomes measures which are conducive to the development of international trade such as the proposal to apply the UN Convention on CISG to Hong Kong. While there are apparent benefits of doing so, a proper cost-benefit analysis should be conducted to better assess the impact this may have on the Hong Kong business community and our status as a leading international trading centre.

The Chamber has made a follow-up response to the Financial Services and the Treasury Bureau based on the latest draft of the Companies (Corporate Rescue) Bill. The response provides further suggestions on the appointment of a provisional supervisor during the corporate rescue procedure and reiterates points made in the Chamber’s earlier submission.

In response to the Financial Services and the Treasury Bureau’s invitation, the Chamber has submitted its views on the Government’s latest proposals to introduce a statutory corporate rescue procedure and insolvent provisions in Hong Kong. The Chamber believe there is a pressing need to provide companies in financial difficulties with an alternative to liquidation especially under the sustained difficulties that Hong Kong has been experiencing since the middle of last year.

The Chamber welcomes the opportunity to comment on the HKEX’s proposed introduction of corporate WVR structures. Prior to committing our support for this proposal, we recommend that the HKEx provide further elaboration on the necessity for establishing such a regime as well as the effectiveness of investor safeguards raised in the consultation paper.