Zhang Ping
Hong Kong is the world's third-largest financial center, with a population of around 7 million, and the Hong Kong Stock Exchange has a market capitalization of $5.78 trillion, nearly 40 trillion RMB. In terms of financial regulation and investor protection, the Hong Kong government and the Securities and Futures Commission have repeatedly issued relevant laws and regulations regarding securities and futures. For instance, earlier, the Government Gazette published the '2019 Securities and Futures (Investor Compensation - Levy) (Amendment) Rules', the '2019 Securities and Futures (Investor Compensation - Compensation Limit) (Amendment) Rules', and the '2019 Securities and Futures (Investor Compensation - Claims) (Amendment) Rules'. The introduction of these laws and regulations aims to better protect the legitimate rights and interests of futures investors and maintain the orderly development of Hong Kong's capital market. The laws and regulations promulgated in 2019 emphasize optimizing the investor compensation system in Hong Kong, which includes adjusting the compensation cap for each investor from 150,000 HKD to 500,000 HKD, effective from January 1, 2020. This article analyzes cases regarding investor compensation from the Hong Kong Securities Exchange, discussing the reasons for the increase in investor compensation, an introduction to the current investor protection system mechanisms of the Hong Kong Securities Exchange, the risks that futures investors may encounter, and provides effective suggestions.
Securities and Futures Industry, Capital Market, Investor Protection, Financial Regulation