Hong Kong — use of social media networks by listed companies or those dealing in securities

The rapid explosion of social networking has changed the way many companies in Hong Kong promote their brands and distribute their products and services. Yet, along with the benefits, social media networks may expose companies to liability under securities laws in Hong Kong. The Securities & Futures Commission (SFC) regulates participants in the securities and futures markets, including the Stock Exchange of Hong Kong, which in turn regulates companies seeking admission on the Exchange and supervises companies once they are listed. Through the administration and enforcement of a number of laws, the SFC can exercise its statutory powers of investigation and enforcement in cases of corporate misconduct, such as the dissemination of false or misleading information.

In this article, Hogan Lovells focuses on the liability incurred due to unintentional marketing and advertising of financial products, as well as the inadvertent disclosure of sensitive information of listed companies on social media platforms…

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