Hong Kong financial license classification 1-9

1number plate：Securities trading 1. Providing trading/brokerage services for stocks and stock options 2. Buying and selling bonds for clients 3. Buying/selling mutual funds and unit trust funds for clients Placing and underwriting securities No. 2：Futures contract trading 1. Provide customers with the buying and selling of index or commodity futures 2. Provide customers with index or commodity futures brokerage services 3. Buy or sell futures contracts for customers 3.：Leveraged foreign exchange trading uses margin trading to conduct foreign exchange transactions for customers No. 4：Providing advice on securities 1. Providing investment advice to clients on selling or buying securities 2. Issue research reports or analyzes on securities No. 5：Provide advice on futures contracts 1. Provide investment advice to clients on selling or buying futures contracts 2. Issue research reports or analyzes on futures contracts No. 6：Advising on institutional financing 1 Acting as sponsor for an initial public offering for a listing applicant 2 Advising on the Corporate Acquisition、Advising on mergers and share buy-backs code 3 Advising listed companies on compliance matters under the Listing Rules No. 7：No. 8, an electronic trading platform that provides automated trading services to match customer orders.：Provide securities margin financing to customers who buy stocks and use the customer's stocks as collateral 9Plate：提供资产管理以全权委托形式为客户管理证券或期货合约投资组合以全权委托形式管理基金1号牌-9号牌（个人）的变化趋势，Capital of nine licenses

Require

: 详情见图片若机构要申请成为持牌法团，Need to meet a series of

Require

：

1. A company incorporated in Hong Kong or a non-Hong Kong company registered with the Hong Kong Companies Registry
2. The company has a suitable business structure、Good internal control system and qualified personnel，Ability to manage risks that may be faced in the business
3. For each type of regulated activity applied for，At least two responsible officers must be appointed to directly supervise the relevant activities。
4. For each type of regulated activity applied for，At least one responsible person can supervise the relevant business at all times
5. Among the responsible personnel planned to be appointed by the organization，At least one of them must be from the China Securities Regulatory Commission

Require

Executive Director under 6、All executive directors of an institution must seek approval from the Securities and Futures Commission，To become a responsible officer of a corporate body under the above provisions of Responsible Officer，Their competency must also pass the test prescribed by the China Securities Regulatory Commission.。

When a company applies for a financial license or applies to become a registered institution，The Hong Kong Securities and Futures Commission will make the following judgments on licensed corporations and registered institutions in accordance with Section 129 of the Securities and Futures Ordinance，The specific content is as follows:

1. The subject qualification must be a company incorporated in Hong Kong or an overseas company registered at the Hong Kong Companies Registry
2. Competence of licensed corporations and registered institutions when conducting relevant business，Manage the risks you may face when doing business，Specifically, having the right business structure in place、Good internal control system and qualified business personnel；(For details, see："Guidelines on Competence" separately published by the China Securities Regulatory Commission、Code of Conduct for Licensed or Registered Persons、"Management of Licensed or Registered Persons"、Supervision and Internal Control Guidelines")。
3. Responsible person(1)Each type of regulated activity must appoint at least two responsible officers to directly supervise the relevant activity；(2)Each type of regulated activity must have at least one responsible person who can supervise the business at all times。

If the role arrangement does not cause conflict，The same person may be appointed to supervise more than one type of regulated activity；(3)At least one of the responsible persons is an executive director as defined in the Securities and Futures Ordinance；(4)All executive directors must seek approval from the Securities and Futures Commission；(5)When submitting your license application，Submit all applications for approval of proposed responsible officers to the SFC together；4.Major shareholders, etc. must have the qualifications of suitable candidates. Major shareholders、senior staff、any other person employed in relation to a regulated activity，Any other person associated with such activities，must be suitably qualified。

有关详情请参阅《证券及期货条例》第129?strip。After consulting relevant information，When applying for a license，There is no restriction on SPVs such as trust plans and asset management plans being major shareholders.。但根据《证券及期货条例》第129?strip，To examine the financial capabilities and solvency of major shareholders，It may be difficult for an SPV to pass the review if it is a major shareholder。

?5.The financial capacity of the entity, licensed corporations and registered institutions when conducting relevant business，Sufficient share capital and liquid capital must be maintained(Liquid Fund Index：Assets that can be quickly converted into cash or are already in cash form)。For example，When applying to provide asset management (Type 9 license)，Licensed corporations and registered institutions should pay a minimum share capital of HK$5 million and maintain liquid capital of HK$3 million.。

According to the sponsor in Hong Kong，Based on whether client assets can be held，Can be divided into big and small brands。Big names (unlimited) can hold client assets，Just like domestic public funds,，Client’s assets can be transferred directly to the company’s account，The entire asset can be invested and managed as a unified account。And these investors may not be professional investors (PI)。

But just because of this，In order to protect ordinary investors，The Securities and Futures Commission of Hong Kong has become stricter on such licenses

Require

，Not only does it have extremely high levels of paid-up capital and liquid capital,

Require

，There are also high requirements for licensed responsible persons (ROs).

Require

。So the market price of big brands is higher，Can do more business，Therefore, large listed institutions will tend to apply for or purchase large licenses.，Facilitate business development。

And No. 9 license (small license) cannot hold customer assets，Therefore, separate accounts must be set up for each customer，and may not hold these assets，Can only be managed on behalf of，And investors also have relative restrictions。Because separate account management is a bit troublesome，Therefore, this type of license may be more suitable for private equity funds，Not suitable for broader fund projects。

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。