SFC reports HK$105m quarterly surplus

The Securities and Futures Commission reported a surplus of HK$105 million for the June quarter, compared with a loss of HK$53 million a year ago.

Income grew by 51.9 percent to HK$626 million last quarter, driven by net investment income.

Average daily turnover in Hong Kong’s securities market was HK$119 billion for the quarter, 6 percent lower than HK$126 billion in the previous quarter.

SFC's expenditure was HK$521 million during the quarter, slightly lower than the last quarter.

As of June 30, the number of licensees and registrants totaled 46,824, of which 3,109 were licensed corporations. In the quarter, SFC received 1,043 license applications, including 54 corporate applications.

SFC vetted 82 new listing applications last quarter, including three listing applications from pre-profit biotech companies.

The regulator disciplined eight licensed corporations and two individuals, resulting in total fines of HK$67.5 million.

It also made 2,366 requests for trading and account records triggered by untoward price and turnover movements.

In June, SFC launched a two-month consultation on proposed enhancements to the Code on Real Estate Investment Trusts to provide Hong Kong REITs with more flexibility in making investments. It also proposed to broadly align the requirements for REITs’ connected party and notifiable transactions with the requirements for listed companies.