Part IV Financial Market Conduct and Misconduct, 11 Market Integrity

Subject(s):

Securities — Improper disclosure — Insider dealing — Insider trading — Market abuse

The chapter evaluates Hong Kong’s regulation of market misconduct. The chapter argues that much of Hong Kong’s regulatory structure addressing market misconduct is derived from overseas jurisdictions (Australia and the United States, and reflecting the European Union and the United Kingdom). In relation to insider dealing, market misconduct, and disclosure Hong Kong’s approach largely follows the legislative, regulatory, and common law development in the United States. The chapter concludes that following the enactment of the Securities and Futures Ordinance (SFO), Hong Kong has implemented a comprehensive system addressing market misconduct, through both disclosure regulation and market conduct regulation. This is especially the case in relation to insider dealing, market manipulation, and financial fraud and deception. Regulation addressing such issues in Hong Kong is generally of an international standard.