The China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) have entered into a Memorandum of Understanding (MoU) Two or more parties to a Memorandum of Understanding (MoU) that enter into an understanding of the terms and details Let’s underline. It includes the overall requirements and responsibilities of each party. An MoU is viewed as the first step in the formation of a formal contract between two or more parties. These contracts are used in many industries. , between companies, authorities, regulators and individuals. At its core, an MoU is not legally binding, however a Memorandum of Understanding (MOU) is defined as a non-binding agreement between two or more parties that outlines the terms and details Is. Understanding. It includes the overall requirements and responsibilities of each party. An MoU is seen as the first step in the formation of a formal contract term. between two or more parties. These contracts are used in many industries, between companies, authorities, regulators, and individuals. At its core, an MOU is not legally binding (though see the term) that seeks to strengthen their cross-border regulatory efforts in the offering and listing of securities. by domestic companies in both countries.
The SFC announced the cooperation in a joint statement published on its website on Friday. According to the Hong Kong securities regulator, the MoU outlines the methods and procedures for the issuance and listing of shares in both the countries. The memorandum also clarifies how the two regulators will go about a joint cross-border enforcement and information exchange. Furthermore, the agreement spells out how financial intermediaries are to be supervised in both countries.
“The MoU will enable CSRC and SFC to discharge their supervisory functions, jointly combat cross-border crimes and malpractices, protect legitimate interests of investors and ensure stable and healthy development of both the markets,” the regulator said in a joint statement. will help.” ,
Meanwhile, the signing of the agreement comes days after the Hong Kong-based brokerage began suspending accounts of clients from mainland China to comply with China’s ban on international brokers offering services without a local license. Did it Both Hong Kong-listed Bright Smart Securities and the Hong Kong unit of Chinese broker Guotai Junyan Securities issued notices on account suspension, though the latter withdrew the notices from the public domain.
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The move comes after a warning was issued by the CSRC against Futu Holding and UP Fintech Holding (operating as Tiger Brokers), two popular online brokers registered in Hong Kong, providing access to global stocks to investors from mainland China. so that they may stop accepting new customers from mainland China. This came after the Chinese regulator does not grant licenses to online brokerages specializing in cross-border trading.
China started considering banning online brokers engaging Chinese citizens in late 2021. That year, Sun Tianqi, head of the financial stability department of the People’s Bank of China, said that “cross-border online brokerages are driving in China without a driver’s license.” [and are] Conducting illegal financial activities. A year later, the CSRC announced that Futu and UP Fintech were operating an illegal securities business and would be asked to take corrective measures.
The China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) have entered into a Memorandum of Understanding (MoU) between two or more parties that have an understanding on the rules and Outline the details. It includes the overall requirements and responsibilities of each party. An MoU is viewed as the first step in the formation of a formal contract between two or more parties. These contracts are used in many industries. , between companies, authorities, regulators and individuals. At its core, a Memorandum of Understanding is not legally binding, however a Memorandum of Understanding (MOU) is defined as a non-binding agreement between two or more parties that outlines the terms and details . Understanding. It includes the overall requirements and responsibilities of each party. An MoU is seen as the first step in the formation of a formal contract term. between two or more parties. These contracts are used in many industries, between companies, authorities, regulators, and individuals. At its core, an MOU is not legally binding (though see the term) that seeks to strengthen their cross-border regulatory efforts in the offering and listing of securities. by domestic companies in both countries.
The SFC announced the cooperation in a joint statement published on its website on Friday. According to the Hong Kong securities regulator, the MoU outlines the methods and procedures for the issuance and listing of shares in both the countries. The memorandum also clarifies how the two regulators will go about a joint cross-border enforcement and information exchange. Furthermore, the agreement spells out how financial intermediaries are to be supervised in both countries.
“The MoU will enable CSRC and SFC to discharge their supervisory functions, jointly combat cross-border crimes and malpractices, protect legitimate interests of investors and ensure stable and healthy development of both the markets,” the regulator said in a joint statement. will help.” ,
Meanwhile, the signing of the agreement comes days after the Hong Kong-based brokerage began suspending accounts of clients from mainland China to comply with China’s ban on international brokers offering services without a local license. Did it Both Hong Kong-listed Bright Smart Securities and the Hong Kong unit of Chinese broker Guotai Junyan Securities issued notices on account suspension, though the latter withdrew the notices from the public domain.
keep reading
The move comes after a warning was issued by the CSRC against Futu Holding and UP Fintech Holding (operating as Tiger Brokers), two popular online brokers registered in Hong Kong, providing access to global stocks to investors from mainland China. so that they may stop accepting new customers from mainland China. This came after the Chinese regulator does not grant licenses to online brokerages specializing in cross-border trading.
China started considering banning online brokers engaging Chinese citizens in late 2021. That year, Sun Tianqi, head of the financial stability department of the People’s Bank of China, said that “cross-border online brokerages are driving in China without a driver’s license.” [and are] Conducting illegal financial activities. A year later, the CSRC announced that Futu and UP Fintech were operating an illegal securities business and would be asked to take corrective measures.
