What does the SFC do with HKEX and SEHK?

What does the SFC do with HKEX and SEHK?

• A. Supervises and monitors activities
• B. Sets monetary policy for the exchange
• C. Approves all listings
• D. Handles customer complaints about trades

Answer: (A)

The SFC’s role is to regulate the securities and futures markets, ensuring integrity, fairness, and investor protection. It supervises and monitors the activities of the market operator (HKEX/SEHK), as well as market participants such as brokers and listed companies, to ensure rules are followed and to take enforcement action if needed. Monetary policy is not within its remit—that’s handled by the HKMA. Listing approvals are part of HKEX’s listing process, with the SFC’s involvement focused on regulation and supervision rather than approving listings. Handling customer complaints about trades isn’t the primary function either; the SFC mainly addresses misconduct and market-wide issues through oversight and enforcement.

The SFC’s role is to regulate the securities and futures markets, ensuring integrity, fairness, and investor protection. It supervises and monitors the activities of the market operator (HKEX/SEHK), as well as market participants such as brokers and listed companies, to ensure rules are followed and to take enforcement action if needed. Monetary policy is not within its remit—that’s handled by the HKMA. Listing approvals are part of HKEX’s listing process, with the SFC’s involvement focused on regulation and supervision rather than approving listings. Handling customer complaints about trades isn’t the primary function either; the SFC mainly addresses misconduct and market-wide issues through oversight and enforcement.