[Bloomberg]— Now, even Hong Kong’s Securities and Futures Commission is warning about the risks facing the international financial center.
After several years of political turmoil, coupled with the increasing “isolation” under the dynamic clearing and anti-epidemic policy, the Hong Kong Securities and Futures Commission is struggling to manage the US$6.3 trillion financial market. Former employees of the Hong Kong Securities Regulatory Commission said that factors such as employee immigration and job changes led to the loss of talent in the company. Last year, 12% of employees left, including 25% of junior professionals, and those who stayed had to work 12 hours a day to complete the workload.
In its budget statement submitted to the Hong Kong Legislative Council this month, the Hong Kong Securities and Futures Commission called for approval of wage increases after a one-year salary freeze, stating: “If the number and mix of employees are not appropriate, the SFC will have difficulty in fulfilling its role in promoting Hong Kong as an international Various development plans of the financial center.”
While government officials have long insisted that Hong Kong remains a vibrant international hub, the SFC’s concerns mirror those of some business groups about the long-term impact of brain drain and difficulties in recruiting overseas. Hong Kong’s population shrank at a record pace in the year to June last year, with many expats and locals leaving Hong Kong fed up with the strict epidemic prevention measures and political environment.
“Will the increase in staff turnover affect the work of the SFC? To put it bluntly, it definitely will.”
The new listing mechanism for blank cheque companies, the emergence of digital assets, green finance initiatives, etc., have made the environment facing the Hong Kong Securities and Futures Commission increasingly complex. Hong Kong also has to attract more companies to IPO in Hong Kong, especially mainland companies that have been blocked from raising capital in the United States due to political tensions.
In the year to March 2021, the SFC saw a 4% increase in investigations initiated, criminal charges nearly tripled, and there were several raids to combat “ramp-and-dump” cases . In addition, a 31% surge in mergers and acquisitions requires scrutiny, Hong Kong has attracted private equity firms and family offices through tax incentives, and local funding has increased by 10%.
A spokesman for the Securities and Futures Commission said it had no comments other than those at the Legislative Council.
original title
Hong Kong Market Watchdog Warns on Exodus Threat to Finance Hub
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