The Hong Kong Securities Supervision Commission issued a circular stating that in the process of supervising licensed corporations engaged in the management of private funds and trust accounts, a number of deficiencies and unsatisfactory conduct were identified. Many of the cases involved serious misconduct that posed a significant threat to investors' interests and undermined public confidence in the integrity of the Hong Kong market and Hong Kong's status as an international asset management center. The cases set out in the circular cover a wide range of non-compliance, ranging from conflicts of interest, risk management and investment within the scope of authorisation, provision of information to investors and valuation methods. It also sets out the existing responsibilities applicable to asset management companies in these circumstances. The Hong Kong Securities Supervision Commission pointed out that asset management companies should review the concerns contained in the circular and take corresponding measures to correct any deficiencies identified.