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Following is the speech by the Financial Secretary, Mr John C Tsang, at the Hong Kong Exchanges and Clearing Limited (HKEx) 11th Anniversary Cocktail Reception this evening (June 21):
Ron (Chairman, HKEx), Charles (Chief Executive, HKEx), distinguished guests, friends, ladies and gentlemen,
Good evening.
It is my great pleasure to join you all in celebrating the 11th Anniversary of Hong Kong Exchanges and Clearing Limited.
The fact that so many of you are here this evening means two things. First, it shows that word has got around that this is the best party in town. Second, your presence also reflects the Exchange's achievements in growing from strength to strength since its launch in the year 2000. Given that this is a birthday party, you may like to think of the HKEx's performance over the past 12 months as a growth spurt.
In just the past year, the first Brazilian company, the first Swiss company and the second Russian company have listed on the HKEx. They join companies from France, Britain and Japan as well as over 600 Mainland firms listed in Hong Kong. More overseas and Mainland listings are in the pipeline.
This is testament to the work of the HKEx in helping establish Hong Kong as a truly international financial centre in every sense.
Also, in 2010, Hong Kong retained its world number one ranking for total IPO funds raised. Total market capitalisation of our Exchange reached $21 trillion at the end of last year. Since its launch, the overall global ranking of the HKEx has risen from 11th to seventh.
Looking ahead, the HKEx will continue to capture new business opportunities. Last December, the Exchange decided to establish a clearing house by the end of 2012. This will enable derivatives to be traded in Hong Kong's over-the-counter, or OTC, market. OTC clearing in Hong Kong is still a relatively low-volume market. However, the Exchange sees its strategic value, particularly with the trend towards wider use of Renminbi in international transactions.
Another groundbreaking initiative this year saw the first listing of a Renminbi product on the Exchange - a Renminbi-denominated real estate investment trust. As well as preparing for the trading and clearing of Renminbi products, the Exchange has also taken proactive and continuous efforts to develop its Renminbi platform.
This includes exploring and establishing a backup facility to enable investors to buy Renminbi-denominated shares in the secondary market with Hong Kong Dollars when they have difficulty in obtaining Renminbi. The backup facility will form an important part of the overall infrastructure in promoting and supporting offshore Renminbi business in Hong Kong.
The Central Government, in its 12th Five-year Plan, has made it abundantly clear that we are moving in the right direction in developing Renminbi business. The Plan also highlights that there is still much work to be done. I have every confidence that the HKEx will continue to pioneer further initiatives that will support the Mainland's financial reforms and our city's continued prosperity.
Financial services are intensely competitive, especially in the current climate with the financial world focusing on Asia.
I am pleased that the Exchange continues to move with the times. In March, the first phase of trading hour extension was successfully introduced. This has narrowed the gap in trading hours between the HKEx and its competitors in the region. It has also strengthened our city's attractiveness to market participants worldwide.
The Exchange has also been upgrading its securities market trading system. The aim is to achieve a 10-fold increase over the existing capacity. This will be a significant step in improving the capacity and performance of our market infrastructure.
Ladies and gentlemen, I am sure that you are all keen to get on with the party, so it just remains for me to thank everyone at the HKEx for their hard work and commitment over the past year. I also thank our financial services professionals for supporting our efforts to firmly establish Hong Kong as a global financial centre.
Last, but by no means least, I would like to thank our friends in the media. You have helped spread the word far and wide that Hong Kong means business.
Have a great evening.
Ends/Tuesday, June 21, 2011
Issued at HKT 18:50
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