2022 Now & Beyond

Publication

Home to more than 86 million people with a GDP of USD1.6 trillion – 11% of the combined GDP of China and Hong Kong – the GBA plays an increasingly significant role in the overall development of China. What were separate cities competing for business are now part of an increasingly integrated and world-leading region.

03 August 2022

Insight

One of the most significant milestones in the opening of the financial markets in the GBA in 2021 is the launch of the Cross-boundary Wealth Management Connect (WMC) scheme in September 2021.

03 August 2022

Insight

Hong Kong’s first ever insurance-linked securities (ILS) issuance launched in October 2021, paving the way for the region to tap into the burgeoning Mainland reinsurance market and become a leading domicile for the instruments.

03 August 2022

Insight

Despite continuing disruption by the COVID-19 pandemic in the past two years, Hong Kong continues to be one of the most active loan markets in Asia Pacific and remains an important source of offshore borrowings by PRC corporates.

03 August 2022

Insight

The PRC Civil Code and the SPC Interpretation have brought significant impact on loan transactions and credit support provided under those transactions. Here, we provide an overview of some latest legal developments in cross-border asset finance involving the PRC, and what they mean for lenders. This includes clarifications in certain types of security interests in the PRC, changes to consent requirement for disposal of mortgaged property and consent and other requirements relating to guarantees.

03 August 2022

Insight

Keepwell deeds are widely used in offshore financing transactions, but such arrangement has only been tested in the PRC courts in recent years. In this alert, we explore issues relevant to the enforceability of such arrangements in Mainland China.

03 August 2022

Insight

The past two years has seen a dramatic acceleration in the growth of the payments industry both globally and within Hong Kong. With the rise of e-commerce and changes in consumption patterns during COVID-19 pandemic restrictions, the dynamics in the payments industry are rapidly changing as businesses and consumers pivot to digital payments, e-wallets and other electronic payment methods.

03 August 2022

Insight

Asset-backed financing has evolved globally since the first modern day residential mortgage-backed security in the United States in 1970 originated by the Government National Mortgage Association. Traditional asset classes such as residential mortgage-backed securities, credit card and auto-loan receivables continue to dominate issuance volumes. Yet, market players are always exploring new assets and innovative structures to optimise balance sheet and funding outcomes for originators while preserving investor demand: from non-performing loans before the turn of the century to reverse-mortgages, buy now pay later receivables and “green” and crypto assets to list a few.

03 August 2022

Insight

The repackaging structure has been very popular in the last few years. Chinese financial institutions have used the structure as a tool for facilitating market access and innovative financing solutions for their clients.

03 August 2022

Insight

Since 5 March 2021 when the United Kingdom’s Financial Conduct Authority (FCA) formally announced (Announcement) the impending cessation of The London Inter-Bank Offered Rate (LIBOR), financial markets and governments around the world have taken actions to transition to alternatives reference rates.

03 August 2022

Insight

One of the topics clients ask questions about most frequently is deceptively simply and yet critical to get right: the execution of documents. This was only exacerbated during the COVID-19 pandemic times with travel restrictions triggering uncertainty. In this alert, we outline the law in Hong Kong on execution of documents by a company.

03 August 2022

Insight

The ability to monetise carbon and trade carbon credits through carbon markets is a core component of the global transition to net zero, without which global efforts to meet critical carbon reduction targets will be severely impacted. China’s national emissions trading scheme (the National ETS) is set to become the world’s largest carbon market by both trading volume and value, and will play an important part in the global net zero transition. The National ETS began trading in July 2021 and currently operates in parallel with nine pilot schemes (each a Pilot Scheme). China’s ability to peak emissions by 2030 and be carbon neutral by 2060 (the 30/60 strategy) relies in part on its ability to demonstrate to the world that it has the necessary infrastructure in place to maintain the integrity of the system that it has created to realise its 30/60 strategy.

03 August 2022

Insight

Bookbuilding and placing activities by intermediaries in debt offerings have never faced specific regulatory requirements in Hong Kong.

03 August 2022

Insight

Regulatory action in response to financial crime is on the rise and it is critically important for organisations to understand the key focus areas of authorities and ways to minimise the risks. In this alert, we discuss the current trends in financial crime compliance and enforcement in Hong Kong.

03 August 2022

Publication

Hong Kong has long been an innovator when it comes to moving value at speed: from providing the launchpad for the world’s most used smart card system (Octopus) to implementing one of the earliest regulatory structures for virtual banking globally in 2000 (further enhanced in 2018 as part of a package of smart banking initiatives). Hong Kong also has a longstanding digital equivalence law – critical to digital transactions.

03 August 2022