Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Office of Financial Sanctions Implementation plans to issue updated guidance to asset managers on the risks of holding Hong Kong-listed securities that track sanctioned Chinese parent companies through Stock Connect.

UK businesses should ensure compliance with all UK sanctions regulations as part of their business operations, including performing due diligence checks on all of their clients, suppliers and partners. Non-compliance with UK sanctions is a serious offence and punishable through financial penalties or criminal prosecution.

OFSI has delivered a wealth of guidance, advisories, alerts and threat assessment reports assessing sectoral threats and vulnerabilities relating to financial sanctions. These products have been produced to support industry to comply with UK sanctions, including as part of their global operations. OFSI is not currently working on further guidance for the Hong Kong securities sector. If firms are unclear on their obligations, they should seek legal advice.

If somebody has evidence or information of activity that contravenes UK financial sanctions, this should be reported to OFSI immediately using the reporting form available on GOV.UK(https://www.gov.uk/guidance/suspected-breach-of-financial-sanctions-what-to-do).