Liang Fengyi: Hopes that ESG information in the Hong Kong financial market can be more transparent.

Hong Kong environmental, social, and governance (ESG) rating and data product providers launched a code of conduct last month, covering four key areas: good governance, systems and controls, conflict of interest management, and transparency. Ashley Adler, the CEO of the Securities and Futures Commission, stated that over the past year, Hong Kong has been promoting the disclosure of ESG data by listed companies based on the ISSB standards, with the aim of making ESG information in the Hong Kong financial market more transparent and enabling investors to make more informed investment decisions. She mentioned that a total of five providers have expressed their readiness to sign up to this voluntary code. The Securities and Futures Commission does not directly regulate ESG information providers but hopes that the voluntary code will ensure that data collection is fair and transparent, allowing users such as asset managers and fund companies to confidently assess the ESG components of their products through the information provided by the providers. She noted that the code is based on recommendations from the International Organization of Securities Commissions (IOSCO), with universal standards that are believed to help combat the issue of greenwashing in global financial markets. She reiterated that the licensing of virtual asset trading platforms will be announced by the end of this year but did not respond to whether there are platforms that did not meet the standards after review and were not granted licenses. She stated that the report will disclose issues typically found during the review of platform applications for licenses. Regarding the recent cases of high concentration of equity ownership in listed companies announced by the Securities and Futures Commission, Ashley Adler did not comment on whether this has become a trend, only stating that the Commission discloses relevant cases under the premise of safeguarding investors.