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Following is the speech by the Financial Secretary, Mr John C Tsang, at the opening reception of Edmond de Rothschild Asset Management today (June 10):
Mr (Michel) Cicurel, Distinguished Guests, Ladies and Gentlemen,
Good evening.
It gives me great pleasure to join you at this cocktail today. My warmest congratulations to Edmond de Rothschild Asset Management on its official launch in Hong Kong.
Financial institutions from France have been contributing to the development of Hong Kong's financial services sector over the years. With the opening of Edmond de Rothschild Asset Management, there are now altogether 26 French-controlled financial institutions licensed by the Securities and Futures Commission in Hong Kong.
Rothschild is a legendary institution. It represents the tale of a highly successful family business that has served the French financial community for more than two centuries. Its commitment to innovation and high-quality investment products has stood the test of time. Your presence adds to the vitality of our financial community here in Hong Kong as well as highlights our credentials as an international financial centre.
Indeed, Hong Kong has consistently been an attractive location for conducting asset management business. Over the years, the size of our combined fund management business has grown to some US$800 billion, over 60% of which was sourced from overseas investors. In 2007, the fund sales in Hong Kong reached a record high, amounting to some US$46 billion (Note 1).
The prospect of the asset management industry in Asia is promising, to say the least. The World Wealth Report 2007 published by Merrill Lynch and Capgemini expects the wealth of high net worth individuals in Asia to grow from US$8.4 trillion in 2006 to US$12.7 trillion in 2011, an increase of some 50% in a period of five years. In particular, Mainland China's strong and sustained economic growth has resulted in rapid accumulation of wealth and a fast developing middle class, leading to higher demand for higher-end and more sophisticated financial products.
As an international financial centre situated at the heart of Asia and the doorstep of Mainland China, Hong Kong is well-positioned to capture the opportunities in the ever-growing asset management business in the region, and even more so since our abolition of estate duties and exemption of profits tax from offshore funds in 2006.
By setting up shop in Hong Kong, you will have the support of a deep pool of talent and a world-class regulatory environment, which are all-important, especially when you are embarking on a new venture in a new environment. And I shall not repeat all the home comforts you would expect to find in Asia's World City, such as world-class telecommunications and transport systems, good food and shopping brands from every corner of the globe, a safe living environment for your families and high quality international schools for your children.
Ladies and Gentlemen, I am sure that many business opportunities are already waiting at your doorstep, and so I wish you every success in Hong Kong.
Thank you.
(Note 1) according to statistics compiled by the Hong Kong Investment Funds Association
Ends/Tuesday, June 10, 2008
Issued at HKT 19:02
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