SEC and HKEX join hands on regulatory mapping to seek more cooperation opportunities

January 15, 2020

Abstract : The SEC and its Hong Kong counterparts negotiated cooperation on capital markets in accordance with the MOU signed between mutual governments on November 29, 2019.

InfoQuest (January 14, 2020) -- On January 13, 2020, the Securities and Exchange Commission of Thailand (SEC) had a meeting with the Hong Kong Securities and Futures Commission (SFC), the Hong Kong Exchanges and Clearing Limited (HKEX) and the Financial Services and the Treasury Bureau (FSTB). When asked about the results, Ms. Ruenvadee Suwanmongkol, secretary-general of SEC, said that SEC and its Hong Kong counterparts negotiated cooperation on capital markets in accordance with the MOU signed between mutual governments on November 29, 2019.

The detailed results of the meeting are summarized as follows:

First, the common regulatory mapping between Thailand and Hong Kong will be reviewed. This review is a continuation of the mutual fund cooperation agreement including ETF funds and general funds signed on January 13, 2020. According to schedule, the review result will come out in the second quarter of 2020, and then the two sides will start to trade on both markets. To further strengthen consensus and understanding, SEC plans to organize more meetings of Thai investment management companies, SFC, FSTB, the Hong Kong Monetary Authority (HKMA), Hong Kong capital market companies and mutual fund issuers such as banks. Furthermore, the commission who holds that tax issues should be discussed for comparison has already had an initial discussion with the Thai taxation authority.

Second, both Thai and Hong Kong securities and exchange commissions agree to conduct a gap analysis of real estate investment trusts (REITs) within 2020, and consider the possibility of listing on both markets later. In terms of securities depositary receipts (DR), SFC and HKEX pointed out that the relevant rules are the same as those for Thai companies going public on HKEX. Therefore, if a Thai company is interested in listing on HKEX, a detailed review, especially of investor protection, is necessary.

Third, SFC is willing to provide technical support and capacity building for green financing products as a way of promoting the sustainable development strategy of the Thai capital markets.

Source: InfoQuest, by Saowalak Ouypron / Sasithorn, translated by Xinhua Silk Road

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