October 2023

Welcome to our October 2023 issue of Vistra North Asia Perspectives!

Focussing on China after the Mid-Autumn Festival and National Day celebrations, yet another remarkable event being the 6th China International Import Expo (CIIE) will take place in Shanghai on 5 November. This year, the CIIE has reached its largest scale yet, with over a hundred executives from Fortune Global 500 companies and industry leaders confirming their participation. Sheng Qiuping, the Vice Minister of the Ministry of Commerce of China, anticipates that CIIE will attract international guests and organisations from 154 countries and regions. With over 3,400 registered exhibitors and 394,000 trade participants confirming their attendance, the magnitude of CIIE has returned to pre-COVID levels. Moreover, the number of exhibitors from Fortune Global 500 companies, and industry leading enterprises attending the CIIE has now reached 289, surpassing earlier benchmarks. Among those participating at CIIE are the Top 15 automobile brands, the Top 10 industrial electrical enterprises, the Top 10 medical equipment enterprises, three mining giants, four major grain traders, and five leading shipping companies. As an effective platform for foreign investors to explore China’s vast market potential, the CIIE serves as a barometer for foreign investor confidence in the country.

Turning to Hong Kong, Chief Executive John Lee Ka-chiu delivered the 2023 Policy Address on 25 October, with the theme of “A Vibrant Economy for a Caring Community”. Vistra specifically focusses on the economic initiatives that impact our clients, which include implementing the “Capital Investment Entrant Scheme”, expanding the coverage of universities under the “Top Talent Pass Scheme”, rolling-out the “Multiple?entry Visa” for foreigners employed by Hong Kong registered companies, to facilitate cross-border transactional work. It is also encouraging to see that the Government is taking steps to reinforce Hong Kong’s status as an international financial center and trading hub, by reducing stamp duties on share transfers on the Hong Kong stock exchange (HKEX), reforming HKEX’ secondary GEM board, exploring the feasibility of maintaining HKEX trading under severe weather conditions, and more generally, diversifying global economic and trade networks, and supporting SMEs. Read about the key highlights in the Spotlight section below.

Additionally, the HKEX has announced several measures over the past month, notably the “Rules amendments following Chinese Mainland regulation updates and other proposed Rules amendments relating to PRC issuers” and?the publishing of a "Consultation paper on GEM listing reforms”. Read about the details in this Newsletter to evaluate whether the measures will impact your business.

To assist our clients in efficiently and compliantly addressing a series of regulations introduced in the Cayman Islands, Vistra has held the “First USD Fund Compliance Training” in our Shanghai office. This training focused on legal and regulatory updates, shared best practices on anti-money laundering compliance, as well as important compliance matters and key compliance dates for funds and fund managers. Please contact us if you wish to know more about the funds training initiative.?

At Vistra, we aim to help our clients act with confidence and speed to seize opportunities, whenever they arise. To help you stay updated on market dynamics, we have compiled this newsletter which covers the latest key policy updates in the Greater China market. Hope that you find our newsletter informative. ? Happy reading!

Vistra North Asia Team

欢迎来到《瑞致达北亚区 | 视界》2023年10月期！

在度过了中秋国庆双节后，中国内地将迎来大型盛会 -- 第六届中国国际进口博览会（进博会）。本届进博会将于11月5日在上海正式开幕，百余名世界500强和行业龙头企业全球总部高管已确认来华参加，规模创新高。据中国商务部副部长盛秋平介绍，本届进博会预计将迎来154个国家、地区和国际组织的来宾。已有超过3400家参展商和39.4万名专业观众注册报名，全面恢复到疫情前水平。参展的世界500强和行业龙头企业数达289家，均超过之前历届水平。全球十五大整车品牌、十大工业电气企业、十大医疗器械企业、三大矿业巨头、四大粮商、五大船运公司等均已将参展。作为外国企业深挖中国广阔市场潜力的有效平台，进博会亦从侧面反映出外企对来华发展投资的信心。

香港方面，行政长官李家超在10月25日发表了2023年施政报告，主题为 "拼经济谋发展，惠民生添幸福"。瑞致达特别就与我司客户密切相关的经济举措进行了梳理，比如，落实 “资本投资者入境计划”、扩大 “高端人才通行证计划” 大学名单、实施外国在港公司人员可 "一签多行" 到内地等来抢留人才、抢企业；下调股票印花税、改革GEM市场、进一步探索在恶劣天气下继续开市的实施方案、拓展全球经贸网络、支援中小企业等来增强香港 “国际金融中心”、“国际贸易中心” 动能等，令人倍感鼓舞。您可在 “本期焦点” 中速览要点。本月港交所相关条例亦有所更新，比如，根据中国内地监管新规修订《上市规则》以及其他有关中国发行人的条文修订、发布GEM上市改革的咨询文件等。您可在本期刊物中阅读详情，进一步了解这些举措是否影响您的相关业务。

同时，为持续协助客户更高效且合规地应对开曼群岛出台/更新的一系列监管法规，瑞致达在上海办公室定向开展了 “第一期美元基金合规培训”，进行了法律法规更新总结、反洗钱合规实操分享、以及基金及基金管理人重要合规事项及节点提醒。如您欲获取相关信息，欢迎与我们联系。

本期视界，我们依旧为您汇总了近期香港及内地市场的重点政策更新或公告，衷心期待本期内容对您有所帮助。 Vistra将始终为您密切关注市场动态，帮助您自信而快速地把握一切机遇！

祝 阅读愉快！

瑞致达北亚区团队

SPOTLIGHT

HKSAR’s 2023 Policy Address?

Hong Kong’s Chief Executive, John Lee Ka-chiu, delivered the Policy Address on 25 October. This year’s policy address focuses on socio-economic advancement with the theme of “A Vibrant Economy for a Caring Community”. It continues the focus on growth initiatives in Hong Kong, including enhancing the development of the “Eight Centers” of focus which were identified in earlier policy, and optimizing talent admission schemes as a means of maintaining a competitive edge. Vistra summarizes key takeaways of Lee’s initiatives on economic development for easy reference.??

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September 2023 edition of HKEX’s Enforcement Bulletin

On 27 September 2023, HKEX published the latest edition of the Enforcement Bulletin. In the Enforcement Bulletin, it focuses on directors' duties towards conflicts. This focuses on directors' responsibilities to avoid conflicts of interest, as well as offering a summary of HKEX’ recent enforcement cases.?

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LEGAL AND COMPLIANCE UPDATES

HKEX publishes consultation paper on GEM listing reforms

On 26 September 2023, HKEX published a consultation paper on the secondary GEM board’s listing reforms. The deadline for public consultation response is 6 November 2023. In the consultation paper, HKEX’ proposals include a new simplified transfer mechanism for eligible GEM listed companies to transfer to the Main Board, the introduction of a new alternative eligibility test for companies in the high-growth segment, and the removal of quarterly reporting requirements.?

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HKEX publishes consultation conclusions on Listing Rule amendments following Chinese Mainland regulation updates and other proposed Rules amendments relating to PRC issuers

HKEX published conclusions to its consultation paper on Listing Rule amendments and other provisions relating to PRC issuers, in light of new regulatory changes on the Chinese Mainland. The HKEX has adopted all the amendments in the consultation paper, with minor modifications. The amendments to the Listing Rules were enacted on 1 August 2023.

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CIMA Rules and Statement of Guidance on Corporate Governance and Internal Controls effective as of 14 October 2023

The Cayman Islands Monetary Authority (CIMA) has recently issued Corporate Governance Rules and Internal Control Rules and Statement of Guidance for regulated entities. The rules and guidance are aimed at enhancing corporate governance and internal control practices for CIMA-regulated entities, and became effective on 14 October 2023.

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HUMAN RESOURCES TRENDS

Global Payroll | What happens after you sign the contract?

While the global economy faces many challenges, including geopolitics and supply chain issues, companies continue to focus on cross-border expansion, hiring of local workers in their target markets, and establishing local payroll systems. This article outlines some critical aspects of global payroll contracts so that companies can understand the practical challenges in implementing such services, assist companies to set realistic budgets and timelines when engaging a global payroll service provider, and help companies better communicate with their stakeholders.?

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Chinese investors doing business in Southeast Asia - HR guidance for Malaysia?

According to the World Bank's "Doing Business 2020" report, Malaysia ranks 12th out of 190 economies worldwide in terms of ease of doing business, second only to Singapore in the ASEAN region. This article shares relevant information on human resource issues relating to Malaysia. For more information about the tax system in Malaysia, please refer to our earlier WeChat article here.

Read More?(Chinese language only)

SOLUTION HIGHLIGHTS

Vistra OverseasConnect – the simple solution for managing all your international operations

Managing international payrolls is never an easy task. Vistra has developed an easy-to-use cloud-based solution ?– OverseasConnect (OsC) – for global payroll services to support your international business expansion plans.?

Watch the Video?

Total Solutions for Global Business Expansion

Vistra offers companies a range of services designed to help get their overseas operations up and running as quickly as possible and in full compliance with all regulations.

We approach every expansion project on a case-by-case basis, tailoring our solutions to cover nearly everything our clients might run into. From entity formation to local and regional regulations, our experts are fully prepared to act as global advisers. We are your eyes and ears for navigating the complexities of new jurisdictions.