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Following is the speech by the Financial Secretary, Mr John C Tsang, at the cocktail reception of the Asian Financial Forum at the Hong Kong Convention and Exhibition Centre this evening (January 17):
Distinguished Guests, Your Excellencies, Ladies and Gentlemen,
Good evening.
I am indeed delighted to join you all for this Cocktail Reception.
I trust the first day of this year's Asian Financial Forum (AFF) has been a fruitful one for everyone.
It is often said that, "necessity is the mother of all invention".
With this in mind, I would like to say a few words about a typically Hong Kong invention – dim sum.
Traditionally, dim sum refers to a variety of tasty, bite-sized snacks. Dim sum has long been popular with Hong Kong's busy workforce in need of a quick and tasty meal at breakfast or at lunchtime, before rushing back to the office. Today, you can find dim sum restaurants actually in cities around the world.
What has this got to do with the AFF?
In the past year or so, the term "dim sum" has taken on a whole new connotation in the form of the so-called "dim sum bonds".
No doubt many of you will be familiar with this term. It is the nickname given to bonds denominated in Renminbi and issued in Hong Kong.
This new financial instrument was born out of the necessity to internationalise the Chinese currency in the current climate of financial opening up and reform on the Mainland.
For us, "dim sum bonds" represent more than just a new and appetising initiative for investors to expand their Renminbi portfolios. They also embody Hong Kong's unique role in reshaping the global agenda through our positioning as China's global financial centre.
Similar to the food from which they take their name, "dim sum bonds" can satisfy many different tastes in many different cities.
Take the American fast food company, McDonald's Corporation, for example.
Last August, McDonald's became the first non-financial foreign company to issue a "dim sum bond". The company raised a modest sum of some 200 million Renminbi to help finance its expansion in the Mainland.
Other companies like Caterpillar and even the Asian Development Bank made good use of the potential of "dim sum bond" last year. And the Central Government in Beijing issued its second sovereign bond worth eight billion Renminbi last November. This clearly demonstrates the Central Government's confidence in Hong Kong as a launch base for Renminbi liberalisation.
The recipe for Hong Kong's role as China's global financial centre is a tried and trusted one. Here it is.
Step one: Take Hong Kong's free flow of capital, open markets and international standards.
Step two: Blend this with the Mainland's rapid growth, investment potential and increasing prominence in the global financial landscape.
Step three: Add a little financial initiative and experience and you get a variety of products that help to meet the growing demand for Renminbi around the world. These include Renminbi banking, Renminbi trade settlement, Renminbi inter-bank lending and, of course, "dim sum bonds".
Ladies and Gentlemen, this is indeed a special time of the year for Hong Kong. We recently celebrated Christmas followed by the New Year. Now we are looking forward to celebrating the Chinese New Year early next month.
Hong Kong is at its best with a blend of influences from the East and from the West. That includes bringing the brightest financial minds from around the world to Hong Kong.
Beyond the information-sharing and networking opportunities, I hope you will find time to enjoy the traditional delights of Hong Kong. I certainly recommend a dim sum lunch. It would be a great way to experience Hong Kong's culinary diversity while discussing the role Asia needs to play in reshaping the global agenda.
Thank you very much. Have a great evening.
Ends/Monday, January 17, 2011
Issued at HKT 19:44
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