HONG KONG SAR, CHINA Trends and Developments Contributed by: Angus Forsyth, Angus Forsyth & Co
Digitalisation and Streamlining of Initial Public Offerings In November 2020, Hong Kong Exchanges and Clear - ing Limited (HKEXC) published a concept paper set - ting out a conceptual vision and plan to modernise, streamline and digitalise the Hong Kong settlement process for initial public offering (IPO) for listing on the Hong Kong Stock Exchange (HKEX). The vision in the concept paper set out the new platform, called Fast Interface for New Issuance (FINI). This proposal was designed to address and eliminate various bottleneck and constriction points, and to streamline and digitise the settlement process of a new listing on the HKEX by sponsors, intermediaries and legal advisers being required to be entered into a new online external user testing registration form. The concept paper was generally accepted by the list - ing market and HKEXC published the concept paper conclusions in July 2021. Following publication of the conclusions, HKEX worked on the details of the devel - opment of FINI: FINI started in November 2022 with registration onboarding of applicants; and the actual launch of the real platform FINI with its own website and email address was 22 November 2023. Following the launch, all new listings on HKEX of assets in Hong Kong were required to use FINI. Members of HKEX participating in Initial Public Offer - ings and all those successfully completing the regis - tration form (“FINI Users”) were able: • to input and amend the information on the IPO (ie, IPO reference date) in FINI from time to time when the task was delegated to them by the sponsors of the IPO; or • to submit the required documents and legal undertakings where FINI Users participated in the capacity of counsel for the issuer or sponsor in a new listing and, accordingly, any law firm success - fully completing the online FINI registration form and submitting all the necessary onboarding docu - ments as soon as practicable prior to the launch of FINI was able to participate in the new listings going forward. On completion of FINI Registration, participators were invited to take part in the FINI External User Testing
(EUT) by completing the EUT registration form and reviewing the EUT Information Pack for Sponsors, Intermediaries and Legal Advisers published on the FINI webpage. Following EUT Registration, a participating sponsor, intermediary or law firm would provide the name and contact of two representatives of the law firm who would participate in the EUT and the firm would be assigned to a simulated IPO accordingly. HKEX published further training materials on the FINI Webpage and the Terms and Conditions of FINI (the “FINI Terms and Conditions”) preserved the acknowl - edgement on the FINI website that the content and materials of the webpages of FINI belonged to HKEX group and all copyright and other intellectual property right and proprietary rights in them belonged to HKEX Group and other parties (as applicable). Notices to and from FINI Users Condition 17.2 of the FINI Terms and Conditions as to notice permits that any notices, requests, demands or other communications in connection with the Terms and Conditions may be given orally (followed by email) or in writing and delivered in person, by post, by elec - tronic or wire transmission, by telephone, by fax or by any means of computer data transmission based in any such case on the information about the contact details of the FINI User as maintained by HKSCC. Virtual Asset Service Provider The Hong Kong Monetary Authority (HKMA) published a circular on 27 April 2023 ahead of the implementa - tion on 1 June 2023 of the new Hong Kong licens - ing regime for Virtual Asset Service Providers (VASP). This circular introduced the concept of VASP licensing applicants meeting the requirements of the Securities and Futures Commission (SFC) that it receives the bank account details of applicants for VASPs before approving their licensing applications. Under the disclosure obligations for applicants for Hong Kong licensing, virtual asset trading platform operators are required to provide clients with adequate product information to enable them to evaluate their investments. This information must be made available
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