Posted in: Press Releases

June 11th, 2010

China’s robust economy has spearheaded the overall economic recovery of the region.  Hong Kong, as an international financial centre, is in the right spot to serve the Mainland and international markets, according to a senior financial official from Hong Kong.

Speaking today (Friday) at a luncheon seminar hosted by the Toronto section of the Hong Kong-Canada Business Association, Miss Au King-chi, the Permanent Secretary for Financial Services and the Treasury (Financial Services) of the Government of the Hong Kong Special Administrative Region, stressed on Hong Kong’s “unlimited potential” for Canadian investors and business people.

She said Hong Kong had weathered the global financial crisis “in relatively good shape”, and the real GDP growth for 2010 “may exceed our earlier forecast of 4 to 5 per cent.”

“There is no room for complacency.  We spare no effort to sharpen and capitalize our strengths in positioning ourselves as an international financial centre,” Miss Au said. “These include our simple and low taxes, free flow of information and capital, a stable and fully convertible currency, a predictable and certain regulatory regime, a versatile and flexible workforce, as well as a free economy buttressed by the rule of law and an independent judiciary.”

She highlighted the strategic focus placed by the Hong Kong Government on Renminbi (RMB) offshore business, asset management activities and capital formation services, in further developing Hong Kong as an international financial centre.

-  First, Hong Kong as an offshore RMB centre.

“Mainland China has announced its policy goals for the internationalisation of RMB. Hong Kong is the preferred testing ground for RMB reforms before the capital account becomes fully open.  We believe this is the best way to promote the use of RMB outside the Mainland in an orderly manner,” Miss Au said.

Miss Au pointed out that Hong Kong is the first and only place outside Mainland China that has developed a RMB bond market.  “The RMB Trade Settlement Scheme was launched in July 2009, fully leveraging our RMB settlement and clearing platform, which is the most effective and largest outside the Mainland,” she said.

“We seek to attract more RMB liquidity, develop more RMB products and allow more RMB market players to perform an effective intermediary role,” she added. “With greater RMB liquidity, more RMB products and more market players for RMB intermediation, we expect to anchor a critical mass of RMB business in Hong Kong,” she said.

-  Second, Hong Kong as an asset management centre.

“Hong Kong has a sizable fund management business, over 64% of which is sourced from overseas investors. We are well placed to serve global institutional investors and meet asset management demand from Mainland China, with our access to the Mainland and international markets.”

-  Third, Hong Kong as a capital formation hub.

Hong Kong was the most active market in 2009, with US$31 billion raised through Initial Public Offerings (IPOs), putting itself as “Number One” in the world. “We are committed to broadening the source of listed companies to attract quality issuers to our capital formation platform,” she said. “To achieve this, Hong Kong will continue its efforts to improve the listing process and refine listing requirements in line with international standards.”

“To maintain Hong Kong’s position as an international financial centre, only a quality market can be a sustainable market in attracting quality products and players,” Miss Au said. In parallel to market development efforts, Hong Kong is implementing a series of financial market reforms to strengthen investor protection and make its legislation more user friendly. “We’ll ensure that our regulatory regime is in keeping with the evolving international standards,” she added.

“We see great potential for Hong Kong to flourish as an international financial centre as we continue to improve our market quality and make our market more user friendly,” she said. “Hong Kong is the prime location especially for tapping into Greater China.”

Miss Au King-chi, Permanent Secretary for Financial Services and the Treasury (Financial Services), today (June 11) speaks at a luncheon hosted by the Toronto section of the Hong Kong-Canada Business Association. She highlights government strategic focus on Renminbi offshore business, asset management activities and capital formation services, in further developing Hong Kong as an international financial centre.

Miss Au King-chi, Permanent Secretary for Financial Services and the Treasury (Financial Services) of the Hong Kong SAR Government, today (June 11) visits Toronto after attending the International Organization of Securities Commissions’ 35th Annual Conference in Montreal. Picture shows Miss Au, together with the leaders of the Toronto section of the Hong Kong-Canada Business Association (HKCBA), at a luncheon seminar at the Royal York Hotel. (From left to right) David Matheson, Special Adviser to the Federation of Hong Kong Business Associations Worldwide; Ms Sonja Chong, former HKCBA President; Miss Au King-chi, and Bob Armstrong, current President of HKCBA Toronto.

 Chinese version on next page.

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