Hong Kong financial license classification、Application conditions and process analysis

Hong Kong is an important offshore and non-offshore center for Asia’s financial markets。Regardless of the maturity of the regulatory structure、Completeness of the public trading market，Or judging from the richness of financial products?，Hong Kong is at the forefront of international financial markets，It is an important platform for international investors to lay out the Asian market.。

Hong Kong’s financial market implements licensing management system。Financial institutions can obtain licenses after complying with regulations，Develop stocks according to license scope、financial derivatives、Forex、Gold and other different varieties and related financial services。For mainland securities and futures、asset Management、international trust、For private equity funds and other institutions，Apply for relevant financial licenses from the Hong Kong Securities and Futures Commission，is to enter the international capital market、Expand investment targets、An important way to enrich customers’ product choices and improve asset management capabilities。

Under the regulatory system of the Securities and Futures Commission of Hong Kong，1Number、2Number、4Number、6No. and9license plateIt is the type of license that attracts more attention from mainland financial institutions.。in，9The license is a Type 9 regulated business qualification license under the Securities and Futures Ordinance.，Right nowAsset management license；Hold this license，This means that institutions can participate in overseas investments within the scope of compliance.，And manage and use overseas investor funds。4license plateIt is an important license approved by the Hong Kong Securities Regulatory Commission for institutions to provide securities investment consulting services.。

Hong Kong financial licensebusiness value

After receiving the financial license from the Securities and Futures Commission of Hong Kong，Institutions can provide stocks to domestic and foreign institutional clients within the scope of the license.、fund、Bonds and other financial products and related services。Relying on the Hong Kong capital market platform，Companies can not only develop overseas real estate funds、Stock funds and other products，You can also immigrate through investment、Investment consulting and other value-added services，Provide more diversified cross-border financial services to high-net-worth customers。

For companies that want to move towards an international asset management platform，Hong Kong financial license is not only the basis for business compliance access，It is also the professional ability of the organization、An important reflection of governance level and international operation capabilities。Generally speaking，Be able to obtain an independent Hong Kong asset management license No. 9，It is also an endorsement of the company’s strong comprehensive strength.。

Hong Kong SFC License Classification and Regulated Activities

Hong Kong financial licenses are classified according to different regulated activities。Business boundaries corresponding to different licenses、Application difficulty、Personnel requirements and compliance responsibilities vary，Enterprises should base their business models on、License planning based on customer type and product structure。

1. Category 1：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；and engage in securities placing and underwriting。
2. Category 2：Futures contract trading。Can provide customers with index or commodity futures trading or brokerage services，and buy or sell futures contracts for clients。
3. Category 3：Leveraged Forex Trading。Can conduct foreign exchange transactions for customers through margin trading。
4. Category 4：Advise on securities。Can provide clients with investment advice on selling or buying securities，and issue research reports or analyzes on securities。
5. Category 5：Advising on futures contracts。Can provide clients with investment advice on selling or buying futures contracts，and issue research reports or analyzes on futures contracts。
6. Category 6：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；and provide advice to listed companies on compliance matters under the Listing Rules。
7. Category 7：Provide automated trading services。An electronic trading platform operable to match customer orders。
8. Category 8：Providing securities margin financing。Financing available for customers buying stocks，And use customer stocks as collateral。
9. Category 9：Provide asset management。Can manage securities or futures contract investment portfolios for clients through discretionary form，and manage the fund on a discretionary basis。
10. Category 10：Providing credit rating services。Just the company、Preparing reports on the creditworthiness of bonds and sovereigns。

Analysis of key license business scope

1number plate：Securities trading

1. Provide clients with trading or brokerage services in stocks and stock options。
2. Buy and sell bonds for clients。
3. Buy or sell mutual funds and unit trust funds for clients，And can carry out securities placement and underwriting。

2number plate：Futures contract trading

1. Provide customers with index or commodity futures trading services。
2. Providing clients with index or commodity futures brokerage services。
3. Buy or sell futures contracts for clients。

3number plate：Leveraged Forex Trading

3The license plate is suitable for the business model of conducting foreign exchange transactions for customers on margin.。

4number plate：Advise on securities

1. Providing investment advice to clients regarding the sale or purchase of securities。
2. Issue research reports or analyzes on securities。

5number plate：Advising on futures contracts

1. Provide investment advice to clients regarding selling or buying futures contracts。
2. Issue research reports or analyzes regarding futures contracts。

6number plate：Advise on institutional financing

1. Acting as sponsor for an initial public offering for a listing applicant。
2. Regarding "Company Acquisition"、Providing advice on the Mergers and Share Buy-backs Code。
3. Advising listed companies on Listing Rules compliance matters。

7number plate：Provide automated trading services

7The number plate is suitable for electronic trading platforms that operate matched customer orders.。

8number plate：Providing securities margin financing

8The number plate is suitable for providing financing to customers who buy stocks.，and use client stocks as collateral。

9number plate：Provide asset management

9The number plate is suitable for managing securities or futures contract investment portfolios for customers on a discretionary basis.，and a business model that manages funds on a discretionary basis。

Hong Kong financial license application conditions and compliance requirements

The difficulty of applying for Hong Kong financial licenses No. 1 to No. 9 is not the same.。Enterprises should consider the scope of business they plan to carry out、Team qualifications、financial strength、Internal control and ongoing compliance capabilities，Choose the type of license you apply for carefully。

Take Hong Kong Asset Management License No. 9 as an example，Hong Kong Securities and Futures Commission regulations，The applicant organization needs to have 2 Hong Kong licensed responsible persons。Licensed responsible persons usually need to have 3-5 years of continuous public capital market performance records，and pass a series of rigorous examinations and qualification reviews。

at the same time，The applicant company also needs to have an actual office address in Hong Kong，and equipped with an experienced management team，To support the daily operations of licensed companies、Risk management and compliance management。The Hong Kong Securities and Futures Commission’s assessment of the business authenticity of the applicant organization、Personnel competency、internal system、Financial stability and sustainable operating capabilities have higher requirements.。

Hong Kong financial license application process

Enterprises apply for financial licenses from the Hong Kong Securities and Futures Commission，Business positioning should be completed in the early stage、License type selection、Responsible staffing、Company structure arrangement and compliance system construction。In the application process，The Securities and Futures Commission of Hong Kong will focus on examining whether institutions have the ability to engage in relevant regulated activities.，and whether it can continue to comply with regulatory requirements。

For those who intend to apply for No. 1、2Number、4Number、6Enterprises with licenses such as No. 9 and No. 9，It is recommended to sort out domestic and overseas business resources in advance、Investment management experience、Personnel resume、track record、Office arrangements and future business plans，To improve the consistency of application materials、Completeness and auditability。

Through professional compliance planning，Businesses can more clearly define the scope of regulated activities，Reduce the risk of repeated submissions during the license application process，and for subsequent overseas investment、asset Management、Securities consulting and institutional financing businesses have laid a solid foundation。

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