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On 20 December 2024, the Hong Kong government gazetted the Companies (Amendment) (No.2) Bill 2024 (“Bill”) which introduces Hong Kong’s long awaited inward re-domiciliation regime. The Bill was introduced to the Legislative Council on 8 January 2025 and once enacted, will enable non-Hong Kong incorporated companies to relocate their domicile to Hong Kong, while maintaining their legal identity and business continuity.

The Hong Kong Government has published on 6 December 2024 a draft of the Protection of Critical Infrastructures (Computer Systems) Bill (“Bill”), marking a significant step towards enhancing cybersecurity standards in relation to essential services and critical societal or economic activities in Hong Kong. This Bill aims to protect the security of the critical computer systems (CCSs) of critical infrastructures (CIs), to regulate operators of CIs (i.e., critical infrastructure operators (CIOs)) and to provide for the investigation into, and response to, computer-system security threats and incidents.

On 6 December 2024, the Hong Kong government gazetted the Stablecoins Bill, which aims to establish a regulatory regime for issuers of fiat-referenced stablecoins in Hong Kong. This follows public consultations by the Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority. The Bill aims to introduce a licensing and regulatory framework for FRS issuers and those involved in offering FRS.

While this article was published, the Security Bureau of the Hong Kong Government announced that the Protection of Critical Infrastructure (Computer System) Bill will be gazetted on Friday, 6 December 2024, and will be introduced into the Legislative Council for First Reading and Second Reading on 11 December 2024. We will provide an update on further developments.

On 26 November 2024, The Stock Exchange of Hong Kong Limited (SEHK) issued a new guidance letter (GL120-24) to inform the market of its expectations on investigations conducted by suspended issuers and the roles of the directors and the independent investigation committees (IIC). According to the latest monthly prolonged suspension status report published by the SEHK, as at 29 November 2024, there were 57 Main Board and eight GEM issuers which have been suspended for three months or more.

On 25 June 2024, the Government proposed to enact a new piece of cybersecurity legislation, tentatively entitled the Protection of Critical Infrastructure (Computer System) Bill, to enhance the protection of computer systems of critical infrastructures (CIs). On 2 July 2024, the proposed legislative framework was tabled to the Legislative Council Panel on Security for consultation. The proposed legislation would require CI operators to fulfill certain statutory obligations and take appropriate measures to strengthen the security of their critical computer systems and minimize the chance of essential services being disrupted or compromised due to cyberattacks.

On 25 June 2024, the Government proposed to enact a new piece of cybersecurity legislation, tentatively entitled the Protection of Critical Infrastructure (Computer System) Bill, to enhance the protection of computer systems of critical infrastructures (CIs). On 2 July 2024, the proposed legislative framework was tabled to the Legislative Council Panel on Security for consultation. The proposed legislation would require CI operators to fulfill certain statutory obligations and take appropriate measures to strengthen the security of their critical computer systems and minimize the chance of essential services being disrupted or compromised due to cyberattacks. It is proposed that a new Commissioner’s Office is to be established under the Government’s Security Bureau for the implementation of the proposed legislation.

On 11 June 2024, the Office of Privacy Commissioner for Personal Data published the “Artificial Intelligence: Model Personal Data Protection Framework” (“AI Framework”). The AI Framework aims to provide practical recommendations for organizations in their adoption of third-party AI systems to comply with the Personal Data (Privacy) Ordinance.

A recent decision of the Hong Kong Court reaffirmed the robust approach taken by the Court in examining the enforceability of a non-compete clause in an employment context even at the interim-interim stage. A former employer has the burden of proof to adduce evidence to substantiate that a non-compete clause is reasonable and necessary for the protection of the former employer’s legitimate business interests for it to be enforceable. The Court will take a very robust approach in examining the scope of the restraint, and the specific basis of justifying a non-compete clause even at the interim-interim stage when a former employer seeks to restrain the ex-employee from joining the new employer competitor by relying on the non-compete clause in the employment agreement.

On 10 April 2024, the Hong Kong Court of Final Appeal (CFA), Hong Kong’s highest court, delivered its judgment in Tam Sze Leung & Ors v Commissioner of Police [2024] HKCFA 8, affirming the validity of the ‘No Consent Regime’ (“Regime”) of the Hong Kong Police (“Police”). The Regime encompassed a practice of issuing “Letters of No Consent” (LNCs) to financial institutions for customer accounts that contain suspected proceeds of crime, thereby triggering informal freezes on these accounts.