*******************************************************
Following is the speech delivered by the Financial Secretary, Mr John C Tsang, at the International Financial Reporting Standards (IFRS) Foundation Trustees evening event today (January 23):
Mr (Michel) Prada, ladies and gentlemen, distinguished guests,
Good evening.
It is a great pleasure for me to welcome the International Financial Reporting Standards Foundation Trustees to Hong Kong.
I hope that our friends from overseas had a pleasant stay here with us and I hope that you would be able to do some shopping as well. It is a good time of the year to do that. I certainly hope that you would help our GDP a bit.
I would also like to thank the Hong Kong Institute of Certified Public Accountants (HKICPA), for co-organising tonight's event and bringing us together.
It is an honour for Hong Kong to host a full Trustees Meeting for the first time.
International Financial Reporting Standards have long been associated with global financial stability. However, the financial tsunami and related events of recent years have highlighted the difficulties of aligning different financial systems in our era of globalisation.
With the rapid diversification of business and integration of companies across different borders, a robust financial reporting regime has become a prerequisite for the healthy development of the global economy.
We look to the Trustees to share with us their insights and wisdom on the future direction of financial reporting.
Participating in the G20 as a member of the China delegation, I have witnessed the determination and hard work of different countries to restore economic health and financial stability.
Fortunately for us, our city, our nation and our region have recovered fairly strongly from the crisis. Hong Kong will continue to fully support the G20's commitment to develop a single set of high-quality, understandable, enforceable and universally accepted financial reporting standards. This would be a valuable asset for international finance in the 21st century.
No doubt, the IFRS Foundation will continue to play a pivotal role in helping achieve this goal.
Hong Kong has long attached great importance to high-quality financial reporting. It is a key factor in maintaining Hong Kong's status as an international financial centre.
As you may know, we were among the first major jurisdictions to adopt IFRS in 2005. Today, the majority of companies listed on the Hong Kong Stock Exchange prepare financial statements in accordance with IFRS or their Hong Kong equivalents.
We depend on the HKICPA as a standard setter for financial reporting. The Institute also makes valuable contributions to the various consultation papers and exposure drafts issued by the IFRS Foundation.
Over the past few years, the Government and our financial regulators have been improving the legislative framework to promote the development, stability and quality of our financial markets and improve investor protection.
We have introduced new laws for listed companies to disclose price sensitive information. We are also rewriting our company law and reforming our trust law regime to bring them up to date.
Other ongoing initiatives include modernising our regulatory regime to meet evolving market needs and align more closely with the G20 agenda. We are also consulting the public on proposals to establish an Independent Insurance Authority for more effective market regulation.
At the same time, Hong Kong is strengthening its role as the "testing ground" for the internationalisation of the Mainland currency, the Renminbi. We shall continue to work in tandem with the Central Government to introduce pilot schemes to promote the wider use of the Renminbi as a settlement, investment and funding currency around the world.
And, earlier this month, we tabled legislative amendments to our tax laws so that we can better support the development of Islamic finance in Hong Kong.
To strengthen the regulatory framework for auditors, we are working with the Financial Reporting Council and the HKICPA on ways to further enhance the independence of Hong Kong's auditor oversight regime.
In policymaking, we shall continue to engage the accounting profession to ensure that any change and proposal will be in the best interests of Hong Kong.
Ladies and gentlemen, in the words of a familiar disclaimer: Past performance is no indication of future results.
However, given the theme of tonight's event, "The Future of Global Financial Reporting", I am confident that past achievements of the IFRS Foundation will continue to have a positive impact on our financial world.
I am also confident that Hong Kong will remain a keen and active member of the IFRS "supporters club" in our role as China's global financial centre.
I would like to wish you all a successful Trustees Meeting, and our visitors an enjoyable stay with us here in Hong Kong.
Thank you very much.
Ends/Wednesday, January 23, 2013
Issued at HKT 20:51
NNNN
Windows Media format
Flash format