You're contacting media contact of this press release

Title: Hong Kong SFC's Regulatory Approach to Share Concentration: Prudential Oversight or Shifting Sands?

Hong Kong, China, 24th Feb 2025 - The term "witch hunt" evokes images of medieval Europe's persecution of those accused of witchcraft, a period marked by injustice and social upheaval. While Hong Kong's financial market has flourished since the 1960s, reaching a prominent position globally, recent years have presented challenges. Despite the market's underlying strength and government efforts to revitalize it, evolving regulatory practices have attracted attention. Specifically, the Hong Kong Securities and Futures Commission's (SFC) increased scrutiny of listed companies with concentrated shareholdings has prompted debate. While intended to promote market transparency, these actions have raised questions about their alignment with investor expectations and the consistency of regulatory application.  Since 2009, the SFC has issued numerous advisories regarding concentrated shareholdings, aiming to protect investors. Although no strict numerical threshold exists, a general practice has developed: regulatory attention is typically focused on situations where controlling shareholders and senior management, along with a limited number of other investors (often around 25), collectively hold a substantial portion of issued shares (approaching 90%).Recently, this established practice appears to have shifted. Regulatory actions now target companies with holdings below the previously understood benchmark, leading some market participants to express concern about potential regulatory overreach.On September 20, 2024, the SFC identified Sanergy Group (2459.HK) as having concentrated shareholdings. Beyond major shareholders and the top 25, the SFC introduced the category of "physical shares", those not held in the Central Clearing and Settlement System (CCASS) or regi...

This press release is issued by King Newswire