The Insurance Authority’s New Guidance and Explanation on Enforcement

The Insurance Authority of Hong Kong (IA) recently issued a set of Frequently Asked Questions  (FAQ) in relation to enforcement. The IA also issued the Explanatory Note  on Section 121 of the Insurance Ordinance (Cap. 41) – Non-disclosure requirement in relation to information obtained in the course of inspection, investigation or disciplinary action (Explanatory Note).  The following is a useful summary and reference table of the FAQ and the Explanatory Note.

The Hong Kong Autonomy Act

On July 2, 2020, the US Congress passed the Hong Kong Autonomy Act (HKAA), providing for mandatory sanctions against individuals, entities and financial institutions in response to China’s National Security Law for Hong Kong. The HKAA is the latest in a series of US measures in response to the ongoing disagreement with China regarding China’s obligation to maintain Hong Kong’s autonomous status under the Joint Declaration and the Basic Law. As further detailed in our recent Alerts¹, it follows a number of steps taken by the United States, including:-

• The May 27, 2020 certification by the Secretary of State under the Hong Kong Human Rights and Democracy Act that Hong Kong no longer enjoys sufficient autonomy in order to justify special treatment by the US,

• The May 28, 2020 announcement by President Trump that the United States would initiate the process of revoking Hong Kong’s favorable treatment under US law and

• The decision by the Chinese Government to introduce a National Security Law for Hong Kong, which took effect on June 30, 2020.

• Announcements this week by the State Department of visa restrictions on Chinese government officials, and by the Commerce Department of the elimination of exceptions treating Hong Kong more favourably than China for exports of goods and technology to Hong Kong, and China’s threat of visa restrictions against US officials. 

The HKAA was passed by unanimous consent, and therefore with veto-proof support, by the Senate and House of Representatives. It has not yet been signed into law by the President but is expected to be enacted into law in the coming few days.   

Some Observations on Hong Kong's Recent Surge in Privatisations

We have been seeing a marked increase in the number of deals where controlling shareholders of companies listed on The Stock Exchange of Hong Kong Limited (the Exchange) are taking their companies private (i.e., delisting the shares from the Exchange). With stocks of traditional companies trading at what some commentators believe to be historically low price-to-earnings multiples in the first half of 2020, the market had presented opportunity for privatisations. We have taken a look at privatisation offers launched in the past 18 months (the relevant period) and are sharing our observations in this Legal Update.

HKSAR Government Pilot Scheme on Facilitation for Persons Participating in Arbitral Proceedings in Hong Kong

On 26 June 2020, the HKSAR Government launched the Pilot Scheme on Facilitation for Persons Participating in Arbitral Proceedings in Hong Kong (the Scheme). It aims to facilitate the participation of non-Hong Kong residents in arbitral proceedings in Hong Kong to strengthen its position as an international centre for legal and dispute resolution services in the Asia Pacific Region, and be in line with the Belt and Road Initiative and the Guangdong-Hong Kong-Macao Greater Bay Area Development.

Europe Daily News, 03 July 2020

Europe Daily News, the latest policy and legal devlopments in the European Union

A Legal Soap Opera — As the CCPA and the CPRA Turn

The long-awaited enforcement date of July 1, 2020, for the California Consumer Privacy Act (“CCPA”) has finally arrived.