The China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) have entered into a Memorandum of Understanding (MoU
Memorandum of Understanding (MOU)
A Memorandum of Understanding (MOU) is defined as a non-binding agreement between two or more parties that outlines the terms and details of an agreement. This includes the overall requirements and responsibilities of each party. A memorandum of understanding is considered the first step in forming a formal contract between two or more parties. These contracts are used in many sectors, between companies, authorities, regulators and individuals. Basically, a memorandum of understanding is not legally binding, although it is
A Memorandum of Understanding (MOU) is defined as a non-binding agreement between two or more parties that outlines the terms and details of an agreement. This includes the overall requirements and responsibilities of each party. A memorandum of understanding is considered the first step in forming a formal contract between two or more parties. These contracts are used in many sectors, between companies, authorities, regulators and individuals. Basically, a memorandum of understanding is not legally binding, although it is
Read this term) which aims to strengthen their cross-border regulatory efforts with respect to the offering and listing of securities by domestic firms in both countries.
SFC announced the cooperation Friday in a joint statement posted on its website. According to Hong Kong’s securities regulator, the memorandum of understanding outlines the methods and procedures for issuing and listing shares in the two countries. The memorandum also provides clarification on how the two regulators will conduct joint cross-border enforcement and information exchange. In addition, the agreement explains how the financial intermediaries of the two countries must be supervised.
“The Memorandum of Understanding will help CSRC and SFC carry out their supervisory functions, jointly combat cross-border offenses and misconduct, safeguard the legitimate interests of investors, and ensure the steady and healthy development of both markets,” the regulator explained in the joint statement. .
Meanwhile, the signing of the agreement comes days after Hong Kong-based brokers began suspending the accounts of mainland Chinese clients to comply with China’s ban on international brokers who offer unlicensed services. local. Hong Kong-listed Bright Smart Securities and the Hong Kong unit of Chinese broker Guotai Junan Securities issued account suspension notices, although the latter later removed the notice from the public domain.
The move follows a warning issued by CSRC against Futu Holding and UP Fintech Holding (trading as Tiger Brokers), two popular Hong Kong-registered online brokers that offer mainland Chinese investors access to global stocks, for stop accepting new customers from Mainland China. This happened as the Chinese regulator does not offer licenses to online brokers specializing in cross-border transactions.
China began considering banning online brokers from hiring Chinese citizens by the end of 2021. That year, Sun Tianqi, head of the People’s Bank of China’s financial stability department, noted that “cross-border online brokers are driving in China without a driver. license (and conduct) illegal financial activities”. A year later, the CSRC said that Futu and UP Fintech were operating an illegal securities business and will be asked to take corrective action.
The China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) have entered into a Memorandum of Understanding (MoU
Memorandum of Understanding (MOU)
A Memorandum of Understanding (MOU) is defined as a non-binding agreement between two or more parties that outlines the terms and details of an agreement. This includes the overall requirements and responsibilities of each party. A memorandum of understanding is considered the first step in forming a formal contract between two or more parties. These contracts are used in many sectors, between companies, authorities, regulators and individuals. Basically, a memorandum of understanding is not legally binding, although it is
A Memorandum of Understanding (MOU) is defined as a non-binding agreement between two or more parties that outlines the terms and details of an agreement. This includes the overall requirements and responsibilities of each party. A memorandum of understanding is considered the first step in forming a formal contract between two or more parties. These contracts are used in many sectors, between companies, authorities, regulators and individuals. Basically, a memorandum of understanding is not legally binding, although it is
Read this term) which aims to strengthen their cross-border regulatory efforts with respect to the offering and listing of securities by domestic firms in both countries.
SFC announced the cooperation Friday in a joint statement posted on its website. According to Hong Kong’s securities regulator, the memorandum of understanding outlines the methods and procedures for issuing and listing shares in the two countries. The memorandum also provides clarification on how the two regulators will conduct joint cross-border enforcement and information exchange. In addition, the agreement explains how the financial intermediaries of the two countries must be supervised.
“The Memorandum of Understanding will help CSRC and SFC carry out their supervisory functions, jointly combat cross-border offenses and misconduct, safeguard the legitimate interests of investors, and ensure the steady and healthy development of both markets,” the regulator explained in the joint statement. .
Meanwhile, the signing of the agreement comes days after Hong Kong-based brokers began suspending the accounts of mainland Chinese clients to comply with China’s ban on international brokers who offer unlicensed services. local. Hong Kong-listed Bright Smart Securities and the Hong Kong unit of Chinese broker Guotai Junan Securities issued account suspension notices, although the latter later removed the notice from the public domain.
The move follows a warning issued by CSRC against Futu Holding and UP Fintech Holding (trading as Tiger Brokers), two popular Hong Kong-registered online brokers that offer mainland Chinese investors access to global stocks, for stop accepting new customers from Mainland China. This happened as the Chinese regulator does not offer licenses to online brokers specializing in cross-border transactions.
China began considering banning online brokers from hiring Chinese citizens by the end of 2021. That year, Sun Tianqi, head of the People’s Bank of China’s financial stability department, noted that “cross-border online brokers are driving in China without a driver. license (and conduct) illegal financial activities”. A year later, the CSRC said that Futu and UP Fintech were operating an illegal securities business and will be asked to take corrective action.
