Category: Newsletters

Health Data and Biometrics in AI: Regulatory Risks for Hong Kong Enterprises

By JML

The adoption of artificial intelligence (AI) is transforming the business landscape, enabling enterprises across finance, healthcare, retail, and technology to enhance operational efficiency and deliver tailored services. Processing sensitive personal data, such as health records and biometric identifiers, offers significant opportunities for innovation. Yet, these technological advancements also raise concerns about privacy and data security. These advancements are subject to stringent oversight under Hong Kong’s Personal Data (Privacy) Ordinance (Cap.486) (PDPO). Non-compliance with the PDPO may result in financial penalties, legal liabilities, and reputational damage. The Office of the Privacy Commissioner for Personal Data (PCPD) issued the Artificial Intelligence: Model Personal Data Protection Framework (AI Framework) in 2024 to guide organizations in managing privacy risks associated with AI. Understanding the PDPO, the AI Framework, regulatory risks of processing sensitive data, compliance strategies, and the evolving regulatory landscape is crucial for business operators in Hong Kong.

Health Data and Biometrics in AI Regulatory Risks for Hong Kong Enterprises_en

Copyright Law Compliance Issues Involved in the Use of AI-Generated Content

By JML

The rapid advancement of Artificial Intelligence (AI) has transformed content creation for Hong Kong businesses, enabling the efficient production of marketing materials, design assets, and analytical reports. However, the existing Copyright Ordinance (Cap. 528) does not expressly address AI-generated content, creating uncertainties regarding ownership and potential infringement liabilities. It is important to properly understand the copyright challenges posed by AI-generated content, their implications, and practical strategies to navigate the evolving legal framework while addressing ethical obligations.

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A Review of Ten Years of Competition Law Implementation in Hong Kong

By JML

Hong Kong’s competition law has come of age and enterprises must now take competition law compliance seriously. As Hong Kong commemorates the 10th anniversary of competition law enactment, the Hong Kong Competition Commission (the Commission) shows mastery of competition law enforcement. Strengthening ties with local and Mainland China law enforcement and authorities, including authorities in the Greater Bay Area and the Independent Commission Against Corruption (ICAC), the Commission is poised to target larger syndicates and complex cartels.

Following the implementation of the Competition Ordinance (Cap. 619) (the Ordinance) in 2015 in Hong Kong, two key conduct rules have been established to ensure fair competition in the market. The First Conduct Rule prohibits agreements, decisions, or concerted practices between undertakings that have the object or effect of preventing, restricting, or distorting competition in Hong Kong. This includes practices such as price-fixing, market-sharing, and bid-rigging. The Second Conduct Rule targets undertakings with a substantial degree of market power, prohibiting them from abusing this power through conduct that prevents, restricts, or distorts competition. Such abusive conduct may include predatory pricing, refusal to deal, and exclusivity arrangements. Collaborations with Mainland authorities aim to foster a more unified competition policy, particularly in the Greater Bay Area through the joint initiative with the Guangdong Administration for Market Regulation, targeting enterprises in the region.

In 2025, the Competition Tribunal (Tribunal) is anticipated to continue rendering decisions on more cases, establishing crucial precedents and offering enhanced clarity for Hong Kong’s business community. As exemplified by the Commission’s recent enforcement focus included combating cartel activities affecting citizens in sectors like real estate, funeral services, cleaning services, building maintenance, and logistics technology.

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Adoption of Generative AI Guideline for Hong Kong’s Financial Market

By JML

The Digital Policy Office (DPO) of the Hong Kong Government has released the Hong Kong Generative Artificial Intelligence Technical and Application Guideline on April 15, 2025. Designed for technology developers, service providers, and users, the Guideline provides practical advice on the use of generative artificial intelligence (AI), addressing its applications, limitations, and potential risks. Key governance principles focus on mitigating issues such as data leakage, model bias, and errors.

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Practical Essentials for Hong Kong IPO Preparation – Key Considerations for Private Equity and Venture Capital Investors

By JML

This article provides an overview of the specific requirements and procedures and positioning considerations in respect of the listing of shares on the Hong Kong Stock Exchange, and compares the different requirements of listing on the Main Board, GEM and specific listing channels (including Chapters 18A, 18B and 18C), to assist institutional investors understand the advantages and special features of the Hong Kong stock market, as well as the essentials for a successful listing.

JML202504111712 香港上市准备实务要点 - 私募与风投机构的关键考量

Hong Kong’s New Cybersecurity Law to Take Effect on January 1, 2026

By JML

On March 19, 2025, the Legislative Council of Hong Kong enacted the Protection of Critical Infrastructures (Computer Systems) Ordinance (Cap.653), following consultation commenced in 2023. It represents Hong Kong’s first comprehensive cybersecurity legislation aimed at safeguarding critical infrastructure from cyber threats and ensuring the reliability of essential services and critical societal and economic activities.

This is against the backdrop that governmental and statutory bodies like the Fire Services Department, Registration & Electoral Office, Electrical and Mechanical Services Department, the Cyberport, the Consumer Council and the Companies Registry have in recent years suffered data leaks.

Hong Kong’s New Cybersecurity Law to Take Effect on January 1, 2026 01_en

Due Diligence Requirements for Corporate Finance Advisers

By JML

Corporate finance advisers in Hong Kong are required to comply with various due diligence requirements. The Securities and Futures Commission(“SFC”) issued the Corporate Finance Adviser Code of Conduct (“CF Code”) and the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (“Code of Conduct”), and the Stock Exchange of Hong Kong Limited (“HKEX”) issued the Rules Governing the Listing of Securities on The Stock Exchange Of Hong Kong Limited (“Main Board Listing Rules”) and the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (“GEM Listing Rules”, together with the Main Board Listing Rules, the “HKEX Listing Rules”). These requirements are aimed at ensuring that the advisers have conducted sufficient research and analysis to provide accurate and reliable advice to their clients. For example, corporate finance advisers are required to obtain detailed information about their clients and their business structure, ownership, and financial position, conduct industry research and financial analysis relating to client’s businesses and make sure the clients comply with all relevant regulations, including the Securities and Futures Ordinance, the Takeovers Code, and the HKEX Listing Rules.

The Monetary Authority of Singapore (“MAS”) recently issued the Notice on Business Conduct Requirements for Corporate Finance Advisers (“Notice”) on 23 February 2023. At the end of this article, we will compare the due diligence requirements set out in this notice with those of Hong Kong.

Due Diligence Requirements for Corporate Finance Advisers 2023040809