The China Banking Regulatory Commission's decision to widen the scope of investment under the Qualified Domestic Institutional Investors scheme has highlighted the fact that Hong Kong is our country's principal international financial centre, Financial Secretary Henry Tang says.
 
In a telephone interview with news.gov.hk from Geneva today, Mr Tang said the arrangement facilitates the dual-direction capital flow between the Mainland and Hong Kong.
 
The move also shows Hong Kong has a world class financial services platform which can offer a wide spectrum of financial services to the Mainland, increasing the outward mobility of Mainland investors and financial intermediaries to orderly alleviate some of the country’s external imbalances, he added.
 
Mr Tang said the commission's decision is a practical response to the Action Agenda on China's 11th Five-Year Plan and the Development of Hong Kong.
 
Since the Government announced the action agenda early this year, it has started a series of follow-up works, including having in-depth discussions with the trade, and talking to the related Mainland authorities to work out the proposals, he noted.
 
On financial services, the Government proposed to develop a co-operative, complementary and interactive working relationship between the two financial systems in Hong Kong and the Mainland.
 
Since the announcement of the QDII expansion, the public generally believe that the new arrangement will ensure an orderly outflow of funds from the Mainland.

Mr Tang said the move will bring Hong Kong banks and the finance industry more business opportunities, while enhancing the co-operation and development of Mainland and Hong Kong financial institutions and consolidate the city's status as an international financial centre.
 
It also gives us more opportunities of making best use of Hong Kong’s advantages to facilitate and complement the Mainland's development needs, he added.

Ends/Monday, May 14, 2007
Issued at HKT 23:48

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