Hong Kong Consults On Expanding Specified Stock Exchange List
Wednesday March 02 2011 | 01:46 AM

Hong Kong’s Securities and Futures Commission (SFC) has begun a two-month public consultation on proposals to expand the lists of "specified" local and overseas stock and futures exchanges.

In connection with the Securities & Futures Ordinance, and subsidiary legislation made under it, exchanges in the lists are given the “specified” status for certain purposes relating to licensing, recognised counterparty status, disclosure of interests and price stabilizing.

With regard to the Inland Revenue Ordinance, the SFC has been made aware that adding certain Brazilian, Indian and Chinese exchanges to the lists would facilitate the development of Hong Kong as an international finance centre in general and an asset management centre in particular, by expanding the scope of tax exemptions available to offshore funds engaged in futures trading.

The SFC’s chief executive officer, Martin Wheatley, said: "These are technical amendments to add nine exchanges for the purposes of facilitating the development of Hong Kong as an international financial centre in general, and an asset-management centre in particular, by expanding tax exemptions under the Inland Revenue Ordinance for offshore funds engaged in futures trading. The Commission is also taking this opportunity to update the names of several of the exchanges in the lists."

Comments addressed to the SFC are to be received by April 21.