Stock Exhange

In 30 percent of the companies surveyed, family members hold 50 percent or more of the executive director positions. Regulatory Framework The current framework of corporate governance in Hong Kong limited, China includes both statutory and nonstatutory requirements. Statutory requirements consist of the Companies Ordinance, Securities Ordinance, Securities Ordinance, and Takeover Codes. Nonstatutory requirements are those specified under the Listing Rules covering the number of independent non-executive directors, disclosures of connected transactions, and disclosures of the different components of directors remuneration.

The Stock Exchange of Hong Kong Limited is the primary frontline regulatory organization responsible for the day-to-day supervision and regulation of listed companies, their directors and controlling shareholders, and market users generally in respect of all listing related matters in Hong Kong limited. It performs a self-regulatory functions, overseeing the conduct of its members, and operates a stock market providing a wide variety of products ranging from ordinary shares to options, warrants, unit trusts, and debt securities.

The Securities and Futures Commission exercises prudential supervision over the securities, futures, and financial investment industries. All rules made by the two exchanges SEHK and Hong Kong limited futures Exchange and the clearing houses are subject to SFC approval. SFC administers statutory requirements to ensure full disclosure and fair treatment of the investing public. It regularly monitors trading in the securities and futures markets to detect possible malpractices. It also conducts periodic inspection visits of registered persons and makes inquiries in response to public complaints about misconduct by intermediaries and market malpractice Hong Kong stock exchange.