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Following is the speech by the Chief Executive, Mr Donald Tsang, at the grand opening of the new Trading and Exhibition Hall of the Hong Kong Exchanges and Clearing Limited this morning (April 26) (English only):
Charles (Lee), Distinguished Guests, Ladies and Gentlemen,
It gives me great pleasure today to join you at the grand opening of the newly renovated Exchange facilities. The enhanced facilities now before our eyes speak for our continuous efforts to provide a quality market infrastructure for the industry to flourish.
The Stock Exchange of Hong Kong has come a long way in becoming a major centre for fund-raising and securities trading. Compared to 20 years ago when the Exchange started operation, the market capitalisation of our stock market has grown 38 times, reaching more than HK$9,500 billion last month. Hong Kong's stock market now ranks the second largest in Asia and the eighth largest in the world. These are impressive achievements. But our success is not accidental. The Government, the regulator, the Exchange and the market practitioners have all strived, year in year out, in fostering an attractive and robust market environment for capital formation and investment.
Our connections with the Mainland have given us an obvious edge over our competitors in servicing the financing and investment needs of Mainland enterprises. Given our world-class, well-regulated and highly liquid financial markets, Hong Kong has become the venue of choice for Mainland enterprises venturing in the international capital market. The large international investor base in Hong Kong, which greatly enhances the stock market's fund-raising capability and liquidity, has added to our attraction. Currently, more than 340 Mainland enterprises are listed on the Hong Kong Stock Exchange. Together they have raised more than HK$1,100 billion and account for more than 40% of our total market capitalisation. Our stock market is deep and liquid. For those Mainland enterprises that have listed in Hong Kong and overseas concurrently, about 75% of their trading is done in Hong Kong. Above all, Mainland enterprises are attracted to our equity market for the badge of quality underpinned by our internationally recognised regulatory standards.
Looking ahead, I am optimistic. Opportunities abound for our financial markets to grow further. We shall reinforce our role as the premier capital formation centre for the Mainland. Our stock market will also benefit more than any other competing markets when the Central Government permits the Mainland's Qualified Domestic Institutional Investors to invest more liberally outside the Mainland.
There is, however, no room for complacency. Other stock exchanges are also eyeing the same business opportunities. To consolidate our position, we need to capitalise on our established strengths, i.e. the rule of law, a free market economy, a world-class regulatory regime, free flow of capital and information and good corporate governance, and make the best endeavor to meet the financial services needs of the growing Mainland economy.
Finally, I would like to take this opportunity to thank Mr Charles Lee for his invaluable contributions over the years to the development of our financial services sector. Without his inspiring leadership and selfless dedication, the Hong Kong Exchange would not have achieved its present success. I would also like to thank everyone in the securities industries for making what Hong Kong represents today – a reputable and vibrant international financial centre.
Thank you.
Ends/Wednesday, April 26, 2006
Issued at HKT 12:11
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