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Following is the speech delivered by the Financial Secretary, Mr John C Tsang, at the CPA Congress 2012 this morning (November 19):
Bernard (Poon), Alex (Malley), Paul (Tighe), distinguished guests, friends, ladies and gentlemen,
Good morning everyone, and "G'day" to our friends from Australia.
It is my pleasure to join you all for the annual CPA Congress, and to welcome our visitors to Hong Kong.
The theme of this year's Congress, "Your Guide Through Uncharted Territory", is timely indeed. The challenges facing the global economy are unparalleled in our generation. The Euro zone debt crisis combined with persistently high unemployment and weak demand in the US as well as faltering growth in emerging markets have all contributed to a perfect storm for the world economy.
We depend on our accountants to plot a path through these choppy and uncharted financial waters. Accountants provide a vital link between business operations and resources; they bring together companies and investors which helps create jobs and opportunities.
Here in Hong Kong, accountants also have a big role to play in strengthening the two-way financial bridge between Mainland China and the rest of the world. Hong Kong has firmly established itself as a fertile testing ground and launch pad for offshore Renminbi business. The pace of the Renminbi's emergence as an international currency is gathering steam. It is becoming an increasingly important settlement, funding and investment currency outside the Mainland.
In just the past year, we have made significant progress with growth in Renminbi deposits, trade settlement, bond issuance and financing. Hong Kong hosts the largest offshore pool of Renminbi liquidity, and our city provides a familiar and experienced platform for investors to invest in Renminbi-denominated products including bonds, insurance policies, funds and shares.
While grasping the opportunities of Renminbi liberalisation, we must not lose sight of the current financial challenges.
Among our top priorities is to ensure market stability in a highly turbulent global financial environment. The Hong Kong Government, together with our financial regulators, has remained extremely vigilant since the onset of the global financial crisis. We have taken robust measures to control systemic risks in the financial market.
In recent weeks, the Hong Kong Monetary Authority has stepped in on different occasions to stabilise the value of our currency in the face of hot money inflows. We have also taken strong measures to dampen speculation in the local property market.
A sound legal framework is essential to the stability of the financial services industry. We have put in place statutory requirements on disclosure of price sensitive information. We are also prepared to implement Basel III requirements that will better protect the stock market and the banking industry.
To further improve our regulatory framework, we have recently launched a public consultation on proposals to establish an Independent Insurance Authority. This is in line with international trends for independent regulation. It will also provide our insurance regulator with more operational flexibility to meet the regulatory challenges.
Additionally, we shall consult the accounting profession and other stakeholders on our legislative proposals to streamline and modernise Hong Kong's corporate insolvency law and introduce a statutory corporate rescue procedure. Your views will be most welcome, so please do put pen to paper.
Ladies and gentlemen, the accountancy profession has a long and proud tradition as the gatekeeper of strong corporate governance. Decision-makers depend on you for proper and timely disclosure and effective reporting.
I am delighted that CPA Australia is hosting this Congress in Hong Kong, bringing together leaders from across the business and professional sectors. With a highly topical theme and a sterling line-up of distinguished speakers, I am sure that this year's CPA Congress will be a great success.
May I also wish our visitors an enjoyable stay in Hong Kong and, if you have a chance, do shop a lot.
Thank you.
Ends/Monday, November 19, 2012
Issued at HKT 15:13
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