Hong Kong financial license application requirements、Regulatory Benefits and Compliance Requirements

Hong Kong serves as an important offshore and non-offshore center for Asia’s financial markets，Maturity in regulatory architecture、The completeness of the public trading market and the richness of financial products have long been at the forefront of the international financial market.，It is an important platform for international investors to lay out the Asian market.。

Hong Kong’s financial market follows the development of the local social and economic system，Gradually forming a high degree of openness、A highly liquid and well-regulated mature financial market。With the depreciation of the yuan、Increased pressure on asset allocation on the mainland and tightened domestic regulation，Mainland institutions’ demand for connecting overseas investments with international capital continues to increase，More and more private equity institutions are beginning to enter the Hong Kong market，hope to obtain byHong Kong financial licenseIntroduce overseas investors、Expand cross-border financial business。

Regulatory advantages of Hong Kong financial licenses

Compared with general financial business access，The application conditions for Hong Kong financial licenses are more stringent，Therefore, it has higher market recognition。With its mature regulatory system, Hong Kong、Complete trading market and rich financial products，This has become an important reason why mainland capital continues to pay attention to the value of Hong Kong’s financial licenses.。

Since Shanghai-Hong Kong Stock Connect，More and more mainland management institutions are entering the Hong Kong market by setting up companies in Hong Kong.，and use Hong Kong as a platform to attract international investors。Many private equity fund managers are also interested in applying for relevant licenses from Hong Kong，To improve business compliance capabilities and international capital undertaking capabilities。

Hong Kong Securities and Futures Commission licenseClassification and business scope

in Hong Kong，The China Securities Regulatory Commission manages 10 types of licenses，Each type of license corresponds to a specific regulated activity。If the organization intends to engage in corresponding business，Must obtain corresponding license。The following are common Hong Kong financial licenses and their business scopes：

1. 1number plate：Securities trading。Can provide customers with stock and stock option trading or brokerage services；Buy and sell bonds for clients；Buy or sell mutual funds and unit trust funds for clients；Placing and underwriting securities。
2. 2number plate：Futures contract trading。Can provide customers with index or commodity futures trading；Providing brokerage services for index or commodity futures；Buy or sell futures contracts for clients。
3. 3number plate：Leveraged Forex Trading。Can conduct foreign exchange transactions for customers through margin trading。
4. 4number plate：Advise on securities。Can provide clients with investment advice on selling or buying securities；Issue research reports or analyzes on securities。
5. 5number plate：Advising on futures contracts。Can provide clients with investment advice on selling or buying futures contracts；Issue research reports or analyzes regarding futures contracts。
6. 6number plate：Advise on institutional financing。Can act as sponsor for initial public offerings for listing applicants；Regarding "Company Acquisition"、Providing advice on the Mergers and Share Buy-backs Code；Advising listed companies on Listing Rules compliance matters。
7. 7number plate：Provide automated trading services。An electronic trading platform capable of matching customer orders。
8. 8number plate：Providing securities margin financing。Financing available for customers buying stocks，and use the client’s stocks as collateral。
9. 9number plate：Provide asset management。Can manage securities or futures contract investment portfolios for clients on a discretionary basis，Funds can also be managed on a discretionary basis。

Hong Kong financial license application requirements

If the organization intends to apply to become a licensed corporation in Hong Kong，A series of compliance requirements need to be met，and demonstrate that it has a governance structure appropriate to the regulated activities to be carried out、Staffing、Risk control capabilities and sustainable operation capabilities。

1. The applicant must be a company incorporated in Hong Kong，or a non-Hong Kong company registered with the Hong Kong Companies Registry。
2. The company must have a suitable business structure、Good internal control system and qualified personnel，Ability to effectively manage risks that may be faced in the business process。
3. For each type of regulated activity applied for，At least two responsible officers must be appointed，Directly supervise the conduct of relevant regulated activities。
4. For each type of regulated activity applied for，There must be at least one responsible person who can supervise the relevant business at all times。
5. Among the responsible officers to be appointed by the organization，At least one must be an executive director as required by the Securities and Futures Commission。
6. All executive directors of an institution must seek approval from the Securities and Futures Commission，to become responsible。

Hong Kong financial license application path

For institutions planning to apply for a Hong Kong financial license，Generally there are two paths to choose from：One is to set up a subsidiary in Hong Kong and apply for a license；The second is to acquire a Hong Kong company that has successfully obtained the corresponding license.。

Generally speaking，Larger mainland private equity institutions are more likely to obtain Hong Kong financial licenses by setting up subsidiaries in Hong Kong.。on the one hand，The Hong Kong subsidiary can have the same or similar name as the mainland private equity institution.，Conducive to brand continuity and market recognition；on the other hand，Acquiring a licensed Hong Kong company still requires completing a series of application procedures and preparing corresponding materials，The overall time cost is basically similar to applying for a license for a new subsidiary.。

Hong Kong Xintong Hong Kong Financial Licensing Service

We can provide customers with new application services for Hong Kong financial companies、Current license transfer service，And provide a variety of 149/49 combination license options，Assist organizations according to business planning、Personnel conditions、Compliance budget and time to market，Develop a more suitable Hong Kong financial license application or acquisition plan。

Shenzhen Gangxintong International Business Co., Ltd. has long served in the field of financial compliance and qualification processing，Business covers Hong Kong insurance brokerage companies、Hong Kong 1-9 financial license、Hong Kong Money Lender License，and domestic charitable foundations、School license、Dangerous goods operation/road transport license、Security service license、pawn shop、auction house、License plates in China and Hong Kong、Hong Kong-Zhuhai-Macao Bridge license plate、Entry and Exit International Travel Agency Qualification、Construction labor qualification、Drug business license、Medical beauty institution、ICP、Articles, web articles, etc.。

We insist on integrity as our foundation，Taking innovation as service driving force，Taking convenience and efficiency as the execution direction，Help enterprises complete compliance access in complex regulatory environments、License layout and cross-border business expansion。

About Hong Kong Xintong

Hong Kong Xintong focuses onHong Kong Securities and Futures Commission license、Hong Kong Insurance Broker License、Hong Kong MSO Licenseandmoneylenders licenseApply for service，Assist customers to applyUS MSB license、NFA、RIA、Canadian MSB license、Mainstream overseas financial licenses such as Australia and Mexico，Support enterprises to achieve compliance expansion of cross-border financial business。Also availableCayman Islands Offshore Company Registration、Offshore fund establishment and global compliance operations and other services，Help enterprises expand their presence in international markets。Provide one-stop compliance solutions for enterprises。To learn more，Please contactHong Kong Information Communications Consultant。