A practical response, please

Author: | Published: 1 Nov 2009

In the article A Cautious Start in last month's IFLR, we described the changes introduced by the Hong Kong Securities and Futures Commission (SFC) when it authorised an equity-linked investment product for public distribution for the first time since September 2008. The SFC has now published a Consultation Paper on Proposals to Enhance Protection for the Investing Public that takes up and develops many of the themes. An interesting perspective has also been provided by the launch in October of the PRC sovereign bonds, denominated in renminbi, that have proved very popular with retail investors in Hong Kong. The safe, vanilla nature of these securities has led to a reassessment of some of the protective measures in which other renminbi bond launches have been wrapped this year.

The Consultation Paper is long – 93 pages, with another 330 pages of appendices – and offers proposals too detailed to go into...