Hong Kong Immigration: The Hong Kong Securities and Futures Commission released its first quarterly report for the 2015-2016 fiscal year on the 17th, revealing that as of June 30, 2015, there were 93 Renminbi products related to RQFII and the Shanghai-Hong Kong Stock Connect approved by the Hong Kong Securities and Futures Commission. Meanwhile, the Hong Kong Securities and Futures Commission is closely collaborating with the China Securities Regulatory Commission, Hong Kong Stock Exchange, Shenzhen Stock Exchange, and other institutions on the Shenzhen-Hong Kong Stock Connect issue.
According to the quarterly report disclosed by the Hong Kong Securities and Futures Commission, the total revenue for the period from April 1 to June 30, 2015, was approximately HKD 618 million, representing a year-on-year increase of 115%. After deducting expenses, the surplus for the first quarter of 2015 was approximately HKD 249 million, while the same period last year recorded a loss of HKD 52 million. In addition, the Hong Kong Securities and Futures Commission received a total of 62 listing applications and 1,805 new license applications from financial intermediaries during the first quarter, with year-on-year growth rates of 27% and 15.1%, respectively.
Regarding the stock market connectivity mechanism, the Hong Kong Securities and Futures Commission noted that its services related to the Shanghai-Hong Kong Stock Connect mechanism have been further enhanced. In April, the Hong Kong Securities and Futures Commission approved the Hong Kong Stock Exchange's proposal to launch special independent accounts as an optimization measure for the Shanghai-Hong Kong Stock Connect, allowing institutional investors to execute trades without needing to transfer their A-shares to a brokerage account in advance to meet front-end monitoring requirements. The report also stated that the Hong Kong Securities and Futures Commission is closely collaborating with the China Securities Regulatory Commission, Hong Kong Stock Exchange, Shenzhen Stock Exchange, and other institutions on the Shenzhen-Hong Kong Stock Connect issue.
In terms of Renminbi products, the Hong Kong Securities and Futures Commission stated that the number of RQFII (Renminbi Qualified Foreign Institutional Investor) and Shanghai-Hong Kong Stock Connect products approved by the Hong Kong Securities and Futures Commission is continuously increasing. During the first quarter, the Hong Kong Securities and Futures Commission approved four non-listed RQFII funds and one RQFII ETF. As of June 30, 2015, there were a total of 72 non-listed funds and 21 ETFs related to RQFII and the Shanghai-Hong Kong Stock Connect approved by the Hong Kong Securities and Futures Commission.
Regarding the mutual recognition of funds between the mainland and Hong Kong, the Hong Kong Securities and Futures Commission stated that in addition to listing the general provisions for the recognition of mainland funds under the mutual recognition arrangement, providing guidelines on the mutual recognition arrangement and application procedures for the industry, the Hong Kong Securities and Futures Commission is working to enhance the overall efficiency of the fund recognition process. This includes holding multiple informal information sessions to gather feedback on the proposed revisions to the new fund application process by the Hong Kong Securities and Futures Commission. A technical working group has been formed with the industry to specify simplified documentation requirements for new fund applications and to designate materials for new guidelines that the Securities and Futures Commission plans to publish for the industry. The Hong Kong Securities and Futures Commission stated that it will continue to work with the industry to promote the implementation of relevant measures.
In conclusion, the Hong Kong Securities and Futures Commission stated that to consolidate Hong Kong's position as an international financial center and a major offshore Renminbi hub, it is maintaining close contact with mainland authorities and seeking policy support and financial cooperation opportunities in broader areas. Furthermore, the Hong Kong Securities and Futures Commission indicated that it will continue to strengthen cooperation with Guangdong, Shenzhen, Shanghai, and other regions in the mainland.
