Chapter 1145: Hong Kong Securities Regulatory Commission

Since entering September, Xia Yu has become busier and busier.

Although he has many capable subordinates to share his workload, there are still many things that require his personal attention.

For example, the reform of the financial system in Hong Kong, the opening of the joint stock exchange, the opening of the Hong Kong Futures Exchange and preparations for futures commodities, and the hunting plan for the Milky Way Fund...

Fortunately, the Latin American sovereign debt crisis, which had involved the most of his energy, had already erupted for more than a month.

Except for some minor problems at the beginning with the eight teams of the Galaxy Fund, after a period of running-in, all eight teams were in full swing.

Especially after September, there were no problems that Xia Yu reported to Xia Yu to deal with, and the operation was going very smoothly.

As a result, Xia Yu was able to devote more energy to following up on other matters.

That morning, Xia Yu summoned Liu Tianci and Wang Qi to his office, where Fok Kin-ning sat in as an observer.

Xia Yu took the initiative to ask about the acquisition of Hongkong and Shanghai Banking Corporation.

Wang Qi's Jiuding Securities Company was the main executor, so Wang Qi came forward to report the situation to Xia Yu.

'Chairman, under our successive attacks, HSBC's stock price quickly passed the crash period, and now the stock price has entered the second stage of decline, in a steady decline, with a market value of about 10 million Hong Kong dollars evaporating every day. There is not much room for decline.'

'Before coming here, HSBC's market value was about 4.95 billion Hong Kong dollars.'

'We bought at the bottom when the market value was HK$5.2 billion.'

'Now we have secretly increased our shareholding in HSBC from the publicly known 18.6% to 39.7%.'

'It's almost at the top now, because apart from the 54.7% held by the parent company HSBC Holdings, only 5.6% is left in the open.'

'Our room for manoeuvre is not great, and we are buying smaller amounts of shares every day.'

After listening to Wang Qi's report, Xia Yu nodded slightly and praised, 'You have done a good job. You can buy as many shares as you can.'

'As for HSBC Holdings, I will handle it, and there will definitely be a result this year.'

Wang Qi and Liu Tianci both heard Xia Yu's underlying meaning. They glanced at each other, did not dare to ask more, and nodded in unison, "Okay.'

'The United Stock Exchange is almost finished, right?" Xia Yu asked again.

Liu Tianci immediately replied, 'Chairman, it's almost done. The trading floor has been completely renovated and all kinds of machinery and hardware facilities have been installed.'

'The management rules and trading regulations have also been completed.'

'At the moment, it is still in the internal simulation operation step. If everything goes well, it is planned to officially open to the public on October 11, while permanently closing the existing four stock exchanges.'

Xia Yu's expression twitched slightly and he said, "It seems that it will be less than a month.'

'Yes," Liu Tianci nodded and replied.

'The reason for the delay is not entirely because of the need for simulated operations, but mainly because the Hong Kong government has not yet completed its plans.'

'The new Securities and Exchange Law is already in the pipeline, and the Securities and Futures Commission is also being established. The management regulations and trading rules of our exchange are in line with the new Securities and Exchange Law.'

'Before the new Securities and Exchange Law is officially implemented, our joint stock exchange cannot be opened, otherwise it will conflict with the current Securities and Exchange Law.'

After Liu Tianzhi explained, Xia Yu suddenly understood.

However, he was not concerned about the new Securities and Exchange Act, but rather the upcoming Securities and Futures Commission of Hong Kong.

This key institution, which he proposed to the Governor of Hong Kong, was followed up by Liu Tianci and Wang Qi.

Yes, Hong Kong does not currently have a Securities and Futures Commission in the true sense of the word!

The Securities and Futures Commission of Hong Kong and the Securities and Futures Commission Executive Committee, both of which are part-time government departments, have been performing similar functions.

These two committees have many problems and insufficient authority. Although they can play a certain regulatory role in Hong Kong's capital market, there are still many problems.

The Securities and Futures Commission (SFC) established this time is a statutory body independent of the government.

The chairman and staff of the SFC are full-time professional regulators, and the funding is mainly borne by the market.

In addition, the newly established SFC will obtain many powers that originally belonged to the Hong Kong Monetary Authority (HKMA), the most basic of which is the power to issue licenses.

The SFC will issue licences for securities trading, futures contract trading, leveraged foreign exchange trading, advising on securities, advising on corporate finance, investment banking services, securities margin financing, asset management, credit rating services, etc.!

These are the fundamentals and lifelines of financial institutions!

"Has the management team of the SFC been determined?'

Xia Yu asked Liu Tianci with a slightly solemn expression.

He had previously entrusted Liu Tianci with following up on this matter when setting up the Hong Kong United Stock Exchange, and had given him the authority to make decisions by calling on the resources of the consortium at critical moments, so Liu Tianci definitely knew the situation best.

Liu Tianci thought for a moment and said, 'Chairman, the SFC has a lot of influence and is very large, so since the Hong Kong government ordered its establishment, countless people have tried to interfere. But don't worry, we have the upper hand and the leading position.'

'Most of the personnel have now been confirmed, and the top positions have been decided: a chairman and four vice-chairmen, plus an assistant to the chairman.'

'Among them, the chairman of the SFC, Lee Chi-hang, the vice-chairmen Wong Kong-chow and Ko Chung, and the assistant to the chairman, Lau Ah-hung, are all our people. The remaining two vice-chairmen who are not ours are Dennis Kevin and Ip Ching-wan.'

'As for the seven bodies under its jurisdiction, namely the Academic Review and Advisory Committee, the Investment Trust Fund Committee, the Public Shareholders' Rights Committee, the Exchange Listing Committee, the Share Registrar Disciplinary Committee, the Takeovers and Mergers Committee and the Takeovers Appeal Committee, each of these bodies has our people in key positions. As for the potential successors, we have also screened them all out...'

As Liu Tianci spoke eloquently, Xia Yu's face gradually broke into a smile.

'Good, you've done well.'

'After the CSRC is established, you can bring some people over for me to meet.'

Liu Tianci nodded in response, 'Okay.'

'...'

After chatting with Liu Tianci and Wang Qi for a while, and making sure there was nothing else, Xia Yu told the two to go back.

After the two left, Xia Yu looked at Huo Jianning and asked with a faint smile, 'Jianning, what is the status of the new standard for CD discs?'