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AIMA voices concerns over Hong Kong’s draft ‘market sounding’ rules

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AIMA, one of the world’s largest hedge-fund associations has voiced concerns over Hong Kong’s proposed rules for “market soundings”, saying they risk imposing an undue compliance burden on companies and people licensed in the city, according to a report by Bloomberg.

While AIMA acknowledges that the Securities and Futures Commission’s (SFC) proposed rules, which would increase oversight of non-public information sharing practices between brokers and potential investors ahead of deals, are well-intentioned, they would also “put Hong Kong out of step with all other major jurisdictions”, according to Kher Sheng Lee, AIMA’s Asia-Pacific Co-Head.

Licensees in the city would also be at a significant disadvantage, especially in cross-border deals, as a result of their implementation, according to AIMA, whose hedge and private credit fund members collectively oversee more than $3tn.

A consultation period on the proposed rules ended on 11 December and the SFC has said that it is now considering the responses received.

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