An Unprecedented Settlement In a landmark decision, Binance CEO Changpeng Zhao, also known as CZ, stepped down and pleaded guilty to violating US anti-money laundering laws. The resulting US$4.3 billion settlement, of which CZ will have to pay US$50 million personally, signifies one of the largest corporate penalties in US history, casting a long shadow […]
The Offloading of Chinese Stocks by Foreign Investors: Challenges and Implications for CFOs
Over the last decade, China’s impressive economic surge led to a proliferation of Chinese securities in foreign portfolios. However, recent shifts in the economic landscape have sparked skepticism regarding the world’s second-largest economy. For CFOs of companies with significant operations in China, these changes carry significant implications. Changing Economic Structure and Impact on Business Operations […]
Revolutionizing Market Analysis: The Potential of AI in Detecting Market Manipulation and Price Rigging
In an era where AIs potential seems limitless, we find ourselves aligning Elon Musks prediction of AI dominance – a future where AIs ability could make certain human roles obsolete. However, in our view, rather than making human roles obsolete, we foresee a future where AI complements and enhances human expertise. In this article, we […]
The Future of AI-Driven Advisory Services: PwC, OpenAI, and Harvey’s AI Alliance
On 17 October 2023, PwC announced to ally with OpenAI and Harvey, leveraging OpenAI’s advanced foundation models, Harvey’s expertise in domain-specific models, to create advanced solutions in tax, legal and human resources, such as carrying out due diligence on companies, identifying compliance issues and even recommending whether to authorize business deals. This collaboration signals PwC’s […]
An Analysis of Director’s Duties to Avoid Conflicts of Interest: A Perspective on HKEX’s Guidelines
The Hong Kong Exchanges and Clearing Limited (HKEX) has recently issued an Enforcement Bulletin, focusing on directors’ duties towards conflicts. It discusses various cases to illustrate potential pitfalls directors might encounter and provides practical tips and best practices on conflict management. The report concludes with a summary of enforcement cases from the first half of […]
Understanding Price Sensitive Information (PSI) and its Implications
What is PSI? Price Sensitive Information (PSI), also referred to as “inside information” under Part XIVA of the Securities and Futures Ordinance (SFO), is a legal concept that came into effect on 1st January 2013. “Insider information”, is defined by section 245(1) of the SFO as “specific information” that: (a) is about i. the corporation; […]
Hong Kong’s First Real Estate Fund Security Token Offering: Potential and Challenges for Professional Investors
Tykhe Capital Group has launched Prince Token, marking Hong Kong’s first real estate fund security token offering (“STO”). This STO, the first to be allowed by the Securities and Futures Commission (“SFC”) of Hong Kong, presents a new way for investors to enter the real estate market.. The funds raised through the Prince Token STO […]
The Regulatory Pitfalls Behind the JPEX Incident: A Closer Look
Just last week, the bustling world of digital finance in Hong Kong hit a roadblock that no one in the crypto community could ignore. The epicenter of this turbulence is none other than the crypto exchange JPEX. According to its website, JPEX was established in 2020 and brands itself as a “digital asset encryption trading […]
Growing Influence of Fintech-Focused Private Equity in China: Economic Impacts and Challenges for Foreign Investment
In today’s financial landscape, private equity (PE) firms are key players, guiding promising firms towards success. The technology sector’s rapid expansion in recent years, along with its critical role in adapting the challenges posed by the COVID-19 pandemic, has placed high-growth tech companies a prime target for eager PE investors. Fintech, in particular, has been […]
Can Hong Kong’s New Initiative Boost Stock Market Liquidity Without the Catalyst of Market Making?
In the pulsating world of global finance, one key player is conspicuously absent in Hong Kong’s stock market landscape: the equity Market Maker. These behind-the-scenes heroes are integral to exchanges from Wall Street to London, ensuring that transactions flow smoothly and swiftly. They’re the architects of liquidity, bridging the gap between buyers and sellers, and […]