Hong Kong: Corporate/Commercial Law

It is often said that "Crime doesn't pay", but J.P. Morgan Chase ("JPMC"), who was just ordered to foot US$115 million in legal bills for the person who defrauded it, may beg to defer.

The Cayman Islands Monetary Authority has issued two new binding rules that will fundamentally reshape compliance obligations for financial service providers, including mutual funds, private funds, and SIBA registrants. These rules convert previously non-binding guidance into enforceable requirements with significant penalties for non-compliance, mandating enhanced anti-money laundering programs, sanctions screening protocols, and independent audit obligations.

Herbert Smith Freehills Kramer’s quarterly review of private capital buyouts, fundraising and disputes tells a familiar story for the first half of 2026: subdued on-market play with flashes of brilliance.

The Cayman Islands Monetary Authority has issued two new binding rules that will fundamentally reshape compliance obligations for financial service providers, including mutual funds, private funds, and SIBA registrants. These rules convert previously non-binding guidance into enforceable requirements with significant penalties for non-compliance, mandating enhanced anti-money laundering programs, sanctions screening protocols, and independent audit obligations.

Hong Kong's Securities and Futures Commission has imposed a HKD2.1 million fine on Luk Fook Securities following a ransomware attack that crippled its trading systems for over two weeks. The enforcement action reveals systemic cybersecurity failures across network protection, access controls, and business continuity planning, marking a significant shift from regulatory guidance to direct financial penalties for cyber control deficiencies.

The PRC Ministry of Finance and State Taxation Administration have issued a groundbreaking announcement imposing individual income tax on offshore trusts with Chinese connections, treating them as tax transparent structures. This regime creates tax triggers throughout the trust lifecycle and includes a critical 90-day transitional filing window for existing structures. Affected individuals with offshore trusts connected to PRC residents or assets must urgently assess their compliance obligations under this

The Maples Insights: Hong Kong Investment Funds Forum 2026, held on 7 May, convened over 300 leading fund managers...

The global venture capital market closed the year with strong momentum, as Q4'25 investment reached $138 billion — the highest level in 14 quarters — pushing annual VC investment from $391.9 billion in 2024...

While global VC investment fell from $128.4 billion in Q1'25 to $101.05 billion in Q2, the decline was largely due to OpenAI's $40 billion megadeal in the previous quarter.

Under Hong Kong company law, a buy-out order is the “exit strategy” for shareholders trapped in a toxic corporate relationship. Governed by Section 724 of the Companies Ordinance (Cap. 622), this remedy acts as a court-mandated corporate divorce.

Herbert Smith Freehills Kramer’s quarterly review of private capital buyouts, fundraising and disputes tells a familiar story for the first half of 2026: subdued on-market play with flashes of brilliance.

A quiet first half for Asia private capital, with both fundraising and buyout activity subdued, and no indication whether a second-half rebound will materialise as in recent years.