HK to consolidate status as int'l financial center

Home>>Business

Last updated at: (Beijing Time) Wednesday, March 03, 2004

HK to consolidate status as int'l financial center

DISCUSSION

CHINESE

SEND TO FRIEND

Joseph Yam, chief executive of the Hong Kong Monetary Authority (HKMA), said Tuesday that it is necessary for Hong Kong to take effective steps for consolidating its status as an international financial center.

He made the remarks when speaking at an annual dinner of the Federation of Hong Kong Industries on Tuesday.

Yam said Hong Kong's intermediation channels of banking, equity and debt have been already enjoying the characteristics of stability, integrity, diversity and efficiency, but in terms of the diversity of financial intermediation channels, Hong Kong is still behind.

He explained that because the flow of funds through the debt channel remains, relatively speaking, small.

He said he believed that the diversity of financial intermediation channels is essential to the maintenance of financial stability.

The second attribute is the existence of a platform for financial transactions to be conducted in the major foreign currencies as well as in the domestic currency, he said.

Yam said, "there is a growing need for a liquid platform in our time zone for conducting financial transactions in foreign currencies. The platform for conducting financial transactions in foreign currencies has to be supported by robust payment, clearing and settlement systems."

He said that Hong Kong has already made significant progress in building such a financial infrastructure, with operating real time gross settlement systems for the US dollar, the euro and of course the domestic currency the Hong Kong dollar, and these systems are all linked up to provide payment versus payment. The next step will be including the renminbi into the infrastructure.

He added that direct access to financial services should be available at the wholesale and retail levels, to financial intermediaries and principals, including issuers and investors, regardless of geographical boundaries.

He said he is confident that market forces will assist in promoting the necessary changes, with or without the involvement of government or the supervisory authorities.

Questions?Comments? Click here

Japanese media follows changes regarding 3 ' most-wanted' things for Chinese families ( 2 Messages)

It is unexpectedly easy to defeat "China Threat" theory: Japanese economist ( 17 Messages)

Scientific concept of development crucial to China's future growth: Premier ( 4 Messages)

China issues human rights record of the US ( 4 Messages)

China to promote "cocktail weight loss therapy" in response to WHO plan ( 2 Messages)