List of Financial Activities Regulated by the Hong Kong Securities and Futures Commission

Regulated activities as defined by the Securities and Futures Ordinance are as follows:

License Regulated activity Examples
Type 1 Dealing in securities Trading /broking stock options for clients

Trading bonds for clients

Buying / selling mutual funds and unit trusts for clients

Placing and underwriting of securities

Type 2 Dealing in futures contracts Trading / broking index or commodities futures for clients

Buying / selling futures contracts for clients

Type 3 Leveraged foreign exchange trading Buying / selling foreign exchange for clients on a margin basis
Type 4 Advising on securities Giving investment advice to clients relating to the sale / purchase of securities

Issuing research reports / analyses on securities

Type 5 Advising on futures contracts Giving investment advice to clients relating to the sale / purchase of futures contracts

Issuing research reports on futures contracts

Type 6 Advising on corporate finance Acting as sponsor for listing applicant in an initial public offering

Advising on the Codes on Takeovers and Mergers and Shares Repurchases

Advising listed companies on compliance of Listing Rules

Type 7 Providing automated trading services Operating an electronic trading platform for matching client orders
Type 8 Securities margin financing Providing financing to clients for their purchase of stocks in return for client’s stocks as collaterals
Type 9 Asset management Managing a portfolio of securities or futures contracts for clients on discretionary basis

Managing funds on discretionary basis

Type 10 Providing credit rating services Preparing reports on the credit worthiness of companies, bonds and sovereigns

Source: Hong Kong Securities and Futures Commission