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Following is the speech by the Financial Secretary, Mr John C Tsang, at a cocktail reception to celebrate the ninth anniversary of Hong Kong Exchanges and Clearing Limited (HKEx) at JW Marriott Hotel Hong Kong this evening (June 18):
Ron (Arculli), Paul (Chow), Members of the Board, Distinguished guests, Friends, Ladies and Gentlemen,
Good evening.
It is my great pleasure to join you all in celebrating the 9th Anniversary of the HKEx.
The past year has been an extremely challenging time for us all. I would like to begin with a heartfelt "thank you" for all your hard work, and dedication during these unprecedented economic times. Despite the financial turbulence, our stock market remains the seventh largest in the world and third in Asia in terms of market capitalisation.
Over the years, the HKEx and its predecessors have made a tremendous contribution to the development of our financial market, reinforcing our position as an international financial centre.
In particular, in the past decade or so, we have seen a much broader range of companies listing on our stock market. The first H-share company was listed on the Exchange in 1993, opening the door for Hong Kong to play a vital role as a capital formation centre for Mainland enterprises. Today, there are now 470 companies from the Mainland listed on the Stock Exchange.
The HKEx has worked hard to develop its derivatives market and expand its product range. Last year, Hong Kong ranked first in the world in terms of securitised derivatives turnover and ETF market turnover in the entire Asia Pacific. Recently, HKEx has overtaken other major bourses to become the worldˇ¦s second largest exchange by market value.
The Exchange has also been promoting Hong Kong's attractiveness as a listing platform in the region and further afield - including emerging markets.
Earlier this month, I visited Russia along with Ron, your Chairman, and Lawrence, (Fok) head of issuer marketing. We took advantage of this opportunity to talk about Hong Kong's attributes as a capital-raising centre. I am happy to say there was an extremely positive response from our Russian friends, despite the current economic climate.
Closer to home, cross-jurisdiction co-operation and market innovation are creating new opportunities for both issuers and investors. Last month, the Securities and Futures Commission and the Taiwan Financial Supervisory Commission signed a Side Letter to an earlier Memorandum of Understanding. Under the terms of the Side Letter, ETFs listed in Hong Kong and Taiwan will enjoy mutual recognition in each other's jurisdiction for cross listings and offerings. This is a major step forward in consolidating Hong Kong's position as a preferred ETF platform with exposure to markets in our region.
Last December, the Central Government lent its support for the listing of Mainland enterprises in Hong Kong. I, as well as my colleagues in the Financial Services and the Treasury Bureau, are engaged in ongoing discussions with the relevant parties in Beijing, and across the Mainland to further strengthen cross-boundary financial co-operation.
On the regulatory front, the Exchange is exploring new measures to further strengthen Hong Kong's status as a major fund raising platform. This includes possible streamlining of the listing approval process and ways to make the listing requirements even more customer-friendly, without compromising our international standards or listing thresholds.
With your dedication and expertise, I am confident that Hong Kong will be able to retain a leading position among the world's global financial centres.
Finally, I would like to take this opportunity to thank Paul (Chow) for his enormous contributions to the HKEx. As you know, Paul is stepping down as Chief Executive at the end of the year after more than six years in this very important post. We are grateful to you Paul for your work particularly in strengthening the Exchange's competitiveness and enhancing the regulatory environment during your tenure.
Ladies and Gentlemen, as the Chairman has indicated, there is much work to be done in the months ahead as we chart our path out of the global financial crisis towards an even brighter and more prosperous future.
I look forward to continuing to work with the HKEx in strengthening Hong Kong's position as an international financial centre.
Have a great evening and thank you very much.
Ends/Thursday, June 18, 2009
Issued at HKT 19:15
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