SFC wants mainland cooperation

Hong Kong's Securities and Futures Commission (SFC) has called for greater cooperation from its mainland counterpart, the China Securities Regulatory Commission (CSRC), as it aims to set higher corporate governance standards for mainland firms. Outlining the SFC's three-year plan, Chairman Martin Wheatley said that cross-border enforcement was the top priority, the South China Morning Post reported. The SFC and CSRC have yet to sign a full cooperation agreement, which means the Hong Kong regulator is unable to launch direct investigations into companies suspected of market misconduct. It has to ask the police or other government departments to take action on its behalf. One third of new equity-raisings in Hong Kong last year came from mainland China and this proportion is expected to rise in coming years.