Hong Kong is to deepen bond market: official

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Last updated at: (Beijing Time) Tuesday, January 27, 2004

Hong Kong is to deepen bond market: official

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The Hong Kong government will inthe coming year continue to adopt a multi-pronged approach to provide an environment conducive to the development of the bond market, the Secretary for Financial & the Treasury said Monday.

Frederick Ma pledged in an article to continue to reinforce Hong Kong's position as an international finance center.

Besides implementing the program of securities revenues from toll tunnels and one toll bridge, Ma said the government is actively considering issuing government bonds.

"It would have the positive effect of deepening the bond market," said Ma.

Also, the government will enhance investor education "not for the purpose of playing the role of an investment adviser, but to promote the development of the market and enhance people's understanding of bonds."

Ma attached great importance of the bond market to Hong Kong's long-term economic development and to the city as an internationalfinancial center. He noted that the growth of Hong Kong's bond market has lagged far behind that of the stock market and the banking industry over the past few decades.

"The bond market can serve as an additional capital raising channel for companies, especially those undertaking long-term projects. As for investors, the bond market offers them another investment option," said Ma.

Hong Kong has been aiming to further develop as an international asset management center. According to a survey, it has managed 5 percent of the internationally invested private wealth in 2000, ranking first in Asia. With rapid economic growth in the region, particularly the mainland, the development potential in this area is enormous.

Ma added the government, together with other institutions, willcontinue to facilitate and promote Hong Kong's development as the premier international capital formation center for mainland enterprises.

The finance authorities will also upgrade corporate governance and tighten the regulation of intermediaries to attract more investors to Hong Kong, said Ma.

The market generally expects that the number of companies, including mainland enterprises, to list in Hong Kong this year will exceed that of 2003, said Ma.

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