The Securities and Futures Commission following the collapse of Lehman has been committed to revamping and codifying the structure and methods of selling structured and other investment products in Hong Kong.

In a SPIEGEL interview, renowned Chicago-based economist Raghuram Rajan discusses the dangers of a global currency war, the risks of persistently low interest rates and the growing income and wealth inequality in the United States. SPIEGEL: Professor Rajan, the tensions between the United States and China are rising, several countries are trying to weaken their currencies. Is this the beginning of a global currency war? Rajan: This is certainly a skirmish, with countries using different tools to get an advantage.

Franklin Koo makes the case for extending jury trials to the District Court in the light of Hong Kong’s historical and political context, and provides an interim solution to ease the transition. http://www.hk-lawyer.com/

Hong Kong – Leading accounting firms BDO and Grant Thornton are pleased to announce that their firms have agreed in principle to merge their businesses and practice in the name of BDO Limited. Patrick Rozario, CEO of Grant Thornton said, “Our partners believe that in line with the fast expanding business of the Firm, the business opportunities in China and around the region, we are joining a successful firm which has a solid reputation in the profession and great strength in Hong Kong.

Insolvency practitioners should take note of a recent NSW Supreme Court decision that adopted a broad approach to the legislation imposing liability on receivers and mortgagees in possession for rent or other amounts payable under a property contract. The same reasons would extend to voluntary administrators' liability. Partner Michael Quinlan (view CV) and Law Graduate Jack Power report. http://www.aar.com.au/pubs/insol/foinsoloct10.htm?email=true

Hong Kong has lagged behind other jurisdictions in the development of litigation funding. However, a recent Court of First Instance decision offers the first explicit and publicly available endorsement of the lawfulness of third-party litigation funding in the context of claims by insolvent companies.

Takefuji Corporation, one of the largest consumer financing companies in Japan, petitioned the Tokyo District Court for corporate reorganization on September 28, 2010 and the court accepted the petition on the same day. The court immediately appointed a provisional trustee and an investigator to determine whether Takefuji is eligible for the insolvency proceeding under the Corporate Reorganization Law. The court also ordered a moratorium on enforcement of judgments against Takefuji and forbade Takefuji to repay its creditors and sell or loan its assets.

Pioneer Iron and Steel, a trading company owned by the mainland's so-called "steel princess", Diana Chen Ningning, has gone into provisional liquidation in Hong Kong, owing creditors more than US$516 million. People informed of the situation said the company mainly traded iron ore and owes money to Anglo Australian mining giant BHP Billiton and Standard Chartered. Chen declined to comment as did spokesmen for BHP Billiton and Standard Chartered. Chen is a well- known and well-connected entrepreneur on the mainland.

Provisional Supervision (“PS”) has been talked about for many years and at long last it appears to be on its way, subject to course to legislative time being available. Government has issued its latest take on the issue and has indicated its intention to introduce a bill to Legco.

This Client Alert looks at some of the recent changes, issues and challenges facing those interested in the derivatives market in the PRC and Hong Kong.