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The following is the speech by the acting Chief Executive, Mrs Anson Chan, at the Securities & Futures Commission 10th Anniversary Reception today (Friday):

Mr. Sheng, Ladies and Gentlemen,

I am delighted to be here this evening to share in the celebration and to congratulate the Securities and Futures Commission on its 10th Anniversary.

When the Commission was established a decade ago, the then Financial Secretary, Sir Piers Jacobs said that the enactment of the statute and establishment of the SFC was "a significant step forward in the further development of a stable, fair and orderly market in Hong Kong". The SFC has done its job admirably. Not only has it helped renew the strength of our stock and futures markets after the 1987 global market crash, but it has also contributed to the fair, efficient and transparent operation of our markets. This is particularly important in sustaining local and international confidence as we weather the storm of the recent and probably the most ferocious financial turmoil in the history of Asia.

Thanks to the hard work of the SFC, Hong Kong has transformed from a principally domestic market to one of the most important financial centres in the region and the world. Over the past decade, market capitalisation of our stock market has grown fourfold. The number of listed companies has more than doubled. As of now, over 21,000 market intermediaries are registered with and under the supervision of the Commission.

With growing globalisation of the financial markets, rapid advancement of information technology and the increasing competition from other financial centres in the region, we must redouble our efforts in improving our regulatory regime and modernising the existing market infrastructure to meet the new challenges and to sharpen our leading edge as we move into the next millennium. I am encouraged that the three-prong reform package announced by the Financial Secretary on 3 March has received broad support by the industry and the public at large. With the collective efforts of the Commission, the market and the Government, I am sure that the reforms will put Hong Kong on an even stronger foundation to maximize the opportunities that lie ahead.

The Commission is not just an active player in the domestic market, it has also participated actively in various international fora, maintaining close working relationships with its Mainland and overseas counterparts, raising Hong Kong's international profile and ensuring that our regulatory measures are in line with world trends and standards.

The Commission's success owes much to the valuable contribution of the three distinguished former Chairmen - all of them are here this evening - and to their dedicated and professional staff. I would like to extend my warmest congratulations to all of them. Under the excellent leadership of Mr. Sheng and with the tenacious efforts of his staff, I am sure that the Commission will continue to grow from strength to strength in the years to come.

Thank you.

End/Friday, April 30, 1999

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