Developing the Regional Bond Market

The Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region (HKSAR), Mr Frederick Ma, spoke about the need to develop Hong Kong’s regional bond market at the 10th APEC Finance ministers' Meeting in Thailand on September 4.

Mr Ma said that the Asian financial crisis highlighted the importance of establishing a deep, liquid and mature bond market so as to avoid over-reliance on bank and equity financing. 

He said that, “in my view, the development of the regional bond market must be pursued from both demand and supply perspectives, and at both domestic and regional levels."

Mr Ma outlined the regional bond market plans put forth by the EMEAP Group Asian Bond Fund, the APEC and ASEAN+3, noting, “I am pleased to see that these ideas and initiatives are complementary."

In Hong Kong, said Mr Ma, the development of the bond market is high on his policy agenda and a series of measures have been put in place to simplify the regulations and streamline procedures in issuing and listing debt securities. 

“Good progress has been made," said Mr Ma. Investors are offered more choices and the bond market, particularly at the retail level, is more mature. 

He conceded that developing a regional bond market is not an easy task, but said: “Since we share the common goal of enhancing financial stability and economic growth, we have a common interest in stepping up our efforts and enhancing co-operation."

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