#Legal Framework Adaptation HK

[notanannoyingfangirl]

Challenges of Corporate Secretarial Duties in Hong Kong

Hong Kong, with its unique position as a global financial center, presents a dynamic yet challenging landscape for Corporate Secretaries. Their role, pivotal in ensuring corporate compliance and governance, faces several specific hurdles in this vibrant business hub.

One of the main challenges is keeping up with the ever-evolving legal and regulatory frameworks. Hong Kong's legal system, while robust, is subject to frequent changes, often influenced by both local and international economic climates. For Corporate Secretaries, this means constant vigilance and continuous education to stay abreast of these changes and understand their implications for their organizations.

Another significant challenge is the complexity of corporate governance in a diverse and international environment. Hong Kong's position as a gateway between the East and the West means that Corporate Secretaries must navigate a business culture that blends various international practices. This requires a deep understanding of different corporate governance models and the ability to adapt and apply them effectively in the Hong Kong context.

Furthermore, the role of the Corporate Secretary in Hong Kong is expanding beyond traditional boundaries. Today, they are expected to play a more strategic role in the boardroom, contributing to major decisions and policies. This requires them to have a broader skill set, including strategic thinking, strong communication skills, and a deep understanding of business operations and risks.

Managing shareholder relations is another area that poses challenges. Corporate Secretaries are responsible for ensuring effective communication between the company and its shareholders, which can be particularly challenging in a market as diverse as Hong Kong's. They must navigate cultural differences, language barriers, and varying expectations to maintain transparent and productive relations with all stakeholders.

Moreover, the increasing focus on corporate social responsibility (CSR) and sustainability presents new challenges. Corporate Secretaries are often tasked with ensuring that their companies not only comply with relevant laws and regulations but also operate in a socially and environmentally responsible manner. This adds another layer to their role, requiring them to be knowledgeable about CSR practices and sustainability issues.

In conclusion, Corporate Secretaries in Hong Kong face a unique set of challenges. From staying up-to-date with changing legal requirements to playing a strategic role in corporate governance and managing complex shareholder relations, their role is multifaceted and demanding. As Hong Kong continues to thrive as a global financial hub, the abilities and skills of Corporate Secretaries will remain crucial in navigating the complexities of this dynamic business environment.

[olliejennabn]

Competitive culture sustains HK

There are good reasons for our lofty place in the global economy. Our unique "one country, two systems" arrangement is certainly central to our success. Among many other things, it has made possible our unique and growing role as the business bridge between the Mainland and the rest of the world. Our advantages also include Hong Kong's long-standing embrace of free enterprise and the endless adaptability of Hong Kong business.

 And then there are the people of Hong Kong. We have had no choice but to meet, and beat, a world of competition. International competition has, in short, given Hong Kong its edge.

 Proven track record

I'm hardly alone in trumpeting our competitive culture. This year, Hong Kong was ranked second, globally, in the International Institute for Management Development's World Competitiveness Yearbook. We topped two of the Yearbook's four main focus areas, "government efficiency" and "business efficiency".

 In this year's Global Competitiveness Index, run annually by the World Economic Forum, Hong Kong finished seventh among some 140 economies. We placed second, I should add, in four key areas: infrastructure, ICT adoption, financial system, and product market, which includes trade openness.

 Earlier this year, the Heritage Foundation, which has named Hong Kong the world's freest economy for the past 24 years, had this to say about Hong Kong when releasing its latest "Index of Economic Freedom" report, and I quote: "An exceptionally competitive financial and business hub, Hong Kong remains one of the world's most resilient economies. A high-quality legal framework provides effective protection of property rights and strongly supports the rule of law." The foundation also added: "Regulatory efficiency and openness to global commerce undergird a vibrant entrepreneurial climate."

 For Hong Kong, in short, free trade and competition are at the heart of our continuing success in the global economy.

 Unfortunately, that combination is finding unexpected headwinds elsewhere. Protectionism and other uncompetitive practices are rising. Last month, the heads of the World Trade Organization, the International Monetary Fund, the World Bank and the Organisation for Economic Co-operation & Development came together at the annual meeting of the IMF and the World Bank in Bali to defend global trade, to speak out about the importance of upholding a vigorous and healthy competitive environment for business.

 I'm sure this conference, its notable speakers and panel discussions, will echo that message.

 Regulation is vital to the effective operation of trade and markets. That said, regulators, and governments, must remember that the primary objective of business is not to uphold freedom but to realise commercial advantage.

 They must ensure that no business can use an advantage to exclude other businesses or obscure public interest.

 Such effort requires continuing vigilance. This is the reason that bodies such as the Hong Kong Competition Commission have been established.

 Enabling competition requires a clear understanding of its meaning. There cannot be fair competition, for example, if competitors distort markets through cartels, or if a dominant player wins by forcing its competitors out of the market or using artificial barriers to prevent prospective competitors from entering.

 Such distortions stifle the competitive process. Any short-term gains come at great expense: as an invisible tax on other businesses, and on the public, who end up paying more for fewer choices and inferior products and services.

 A competitive culture, on the other hand, upholds the principle that competition is about outperforming rivals through efficiency, innovation and other legitimate means. A workable competition law enforces clear rules to ensure such an outcome.

 Legal backing

Hong Kong's Competition Ordinance came into full force just three years ago. The ordinance promotes competition and prohibits anti-competitive practices in the marketplace.

 The competition commission was established under the ordinance.

 Despite its short history, the commission has achieved several milestones, including taking a number of anti-competitive cases to court. Enforcement attracts attention. And both the business sector and the general public in Hong Kong are, I'm pleased to say, increasingly aware of the ordinance - and the commission behind it.

 The commission's initial cases have included bid-rigging, market sharing and price fixing, schemes that have attracted significant public interest because of their potential to hurt consumers.

 Cartel investigations can often take years to reach litigation, so it is truly an accomplishment that the commission has brought three such cases to litigation in less than three years.

 The commission is also playing an increasingly active role internationally, sharing its experience with the Association of Southeast Asian Nations (ASEAN). It was, by the way, one year ago this month that Hong Kong and ASEAN signed a free trade agreement, which will come into effect beginning in January. No doubt, the commission will continue to expand its co-operation with ASEAN.

 Earlier this year, the commission was appointed co-chair of the International Competition Network Advocacy Working Group, with the goal of promoting a competition culture through non-enforcement means.

 Financial Secretary Paul Chan gave these remarks at the Hong Kong Competition Exchange 2018 opening ceremony on November 1.

from news.gov.hk - Business & Finance http://www.news.gov.hk/eng/2018/11/20181101/20181101_122158_536.html

[olliejennabn]

HK banking enters new era

Our banking sector, I'm pleased to note, is indeed more than ready for the arrival of this new era, a new era marked by the unstoppable wave of innovation and technology. Our banking sector is responding, or to be more precise, evolving smartly. Technology has given rise to a more competitive but yet more vibrant market, boosting product offerings and business performance of banks.

 If we are to stay ahead of the game, we must fully harness the potential of innovation and technology. To this end, we are undertaking city-wide initiatives to create a smart society.

 Last December, the Government published the Smart City Blueprint for Hong Kong. Our vision is more than clear: we have to build a smart Hong Kong, and in doing so, we will strengthen our economy and enhance the quality of life in Hong Kong.

 The blueprint targets six major areas and more than 70 initiatives.

 For instance, we will provide an electronic identity for all Hong Kong residents, free of charge. It will allow them to use a single digital identity and authentication to conduct governmental and commercial transactions online. The electronic identity programme will get going in mid-2020.

 Turning to our banking industry, technology is no doubt a critical game changer. Not long ago, the idea of doing your banking on a computer, or a pocket-sized mobile phone, would have seemed the stuff of science fiction. Today, of course, it's everyday life.

 Industry reshaper

Financial technology, or fintech, is reshaping the financial services industry. We are seeing new modes of service delivery, enhanced consumer experience, greater operational efficiency, and improved financial inclusion.

 Hong Kong is indeed the ideal centre for developing fintech. After all, we are one of the world's leading financial centres. Earlier this month, Hong Kong was ranked third, worldwide, in the Global Financial Centres Index, finishing a scant three points behind London, which just fell short of New York City.

 The Index rated 110 centres on a wide range of competitive areas. Hong Kong, I'm pleased to report, ranked number one in investment management, as well as infrastructure and human capital. In banking, we finished second, just behind London.

 All these are contributed by our world-beating financial and banking talents, the free-flow of capital and information, world-class financial infrastructure, a vigorous regulatory framework, our common law legal system and our fine tradition of rule of law.

 To ensure we progress further, this Government and the Hong Kong Monetary Authority (HKMA) are doing everything we can.

 The HKMA, for example, launched the Faster Payment System last week, in response to increasing market needs for more efficient and instant electronic payment services.

 The system supports real-time, round-the-clock fund transfer and payment services in Hong Kong dollars and renminbi across different banks and stored value facility operators with the use of mobile phone numbers, email addresses or QR (Quick Response) codes.

 In addition, an industry group led by the HKMA has established a common QR code standard. Using a single QR code will make it a lot easier for merchants, especially small and medium-sized enterprises (SMEs), to accept payment by different schemes.

 The HKMA also fostered the development of a distributed ledger technology-based trade finance platform which will soon be launched, digitising paper-based documents and automating the trade finance process.

 This can only help banks and stored value facility operators roll out more innovative payment services; in turn, they will promote their wider adoption by customers and merchants.

 To encourage the banking sector's adoption of the open application programming interface (API), in July, the HKMA published an Open API Framework following a public consultation.

 Bank-tech synergy

Banks are expected to implement open APIs in four phases starting from next year. I believe the wider adoption of an open API framework will promote collaboration between banks and tech firms, stimulating innovation and improving services for customers.

 Customer confidence is key to the widespread adoption of any new technology. That's particularly true in banking. To that end, the HKMA's Fintech Supervisory Sandbox, launched in 2016, gives the industry a stable testing ground for new products.

 Last year, the HKMA upgraded the sandbox, introducing three new features: a Fintech Supervisory Chatroom for supervisory feedback, direct access to the Chatroom by tech firms and a single point of entry linking up the sandboxes of the HKMA, the Securities & Futures Commission (SFC) and the Insurance Authority, thereby facilitating pilot trials of cross-sector fintech products.

 Sandbox use has steadily expanded since its establishment. I understand the industry appreciates the sandbox's ability to expedite new fintech products, allowing banks and technology companies to obtain user and regulatory feedback at an early stage.

 We are also promoting virtual banks. In May, the HKMA issued a revised Guideline on the Authorisation of Virtual Banks, adapting its existing requirements to better suit the business models of virtual banks. And that is to enable banks, financial institutions and technology companies to promote fintech, and innovation in general in Hong Kong, opening possibilities for them to offer new customer experience.

 In serving the retail segment, including SMEs, virtual banks can help promote financial inclusion. And I am pleased to note that about 30 applications for virtual bank licences have been received.

 The HKMA is now evaluating the applications and hopes to begin granting licences to virtual banks by the end of this year.

 Fintech ecosystem

Fintech, to be sure, does not evolve in isolation. And in this regard, we have been working closely with Shenzhen and other global financial centres. In June, the first Shenzhen-Hong Kong Fintech Award, organised by the HKMA and the Shenzhen Office of Financial Development Service, featured five winners from Hong Kong.

 The Shenzhen Summer Internship Programme, which began in June, enabled 50 Hong Kong students working there with eight fintech companies for six weeks to allow them to experience Shenzhen's fintech ecosystem. The two cities, I should add, have agreed to provide reciprocal, soft-landing support for fintech.

 The HKMA has also entered into fintech co-operation agreements with the United Kingdom, Singapore, Switzerland, Poland, Brazil, the Dubai International Financial Centre, and the Abu Dhabi Global Market.

 The HKMA and the Monetary Authority of Singapore are jointly developing the Global Trade Connectivity Network, a cross-border information highway linking trade and trade finance in the two cities.

 The HKMA has also made good progress in the Banking Made Easy initiative, which identifies possible regulatory friction in the digital experience of customers. This includes remote onboarding, online finance and online wealth management, while ensuring that the banking sector remains effectively supervised.

 Anti-money laundering legislation and related guidelines, for example, have been amended to provide greater flexibility for the use of technology in remote customer onboarding.

 Banks will now be allowed to develop consumer finance portfolios underwritten by such new credit-risk management methods as big data and behavioural analysis.

 The HKMA has also collaborated with the SFC and the Insurance Authority to streamline requirements for the online distribution of investment and insurance products.

 A broad and continuing flow of talent is critical to realising our long-term promise, which is why the Government, last month, initiated its first Talent List for Hong Kong.

 It was designed to support Hong Kong's development as a high value-added and diversified economy. Created, in short, to attract talented individuals from around the world in a more effective and focused manner. To that end, the talent list features 11 targeted professions with fintech included.

 Recruiting tech talent

Separately, the Technology Talent Admission Scheme also provides fast-track admission for eligible overseas and Mainland research and development talent.

 Under the first phase of this pilot scheme, tenants and incubatees of the Hong Kong Science Park and Cyberport engaging in fintech, and related areas, are eligible to apply.

 We're also working to expand local talent through our universities, as well as internships, entrepreneurial training and much more.

 The Chinese University of Hong Kong, last year, introduced a new, four-year undergraduate programme in fintech. Earlier this year, the University of Hong Kong launched Asia's first fintech open online course, in concert with Australia's University of New South Wales and a number of industry leaders.

 In January, the HKMA introduced an enhanced version of its Fintech Career Accelerator Scheme, providing full-time banking placements for students looking to take part in fintech projects.

 And, of course, Fintech Week opening in just over a month, will attract about 8,000 participants from some 50 countries and regions. This year, for the first time, Fintech Week will travel to Shenzhen on the event's final day, definitely drawing participants' attention to the opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area. I am very pleased to note that the Hong Kong Institute of Bankers is playing a proactive role in helping the industry to capitalise on the opportunities ahead.

 Financial Secretary Paul Chan gave these remarks at the 10th Hong Kong Institute of Bankers Banking Conference on September 27.

from news.gov.hk - Business & Finance http://www.news.gov.hk/eng/2018/09/20180927/20180927_125306_116.html