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Following is the speech by the Chief Executive, Mr C Y Leung, at the cocktail reception to celebrate the 13th anniversary of the Hong Kong Exchanges and Clearing Limited (HKEx) this evening (June 24).
C K (HKEx Chairman, Mr Chow Chung-kong), Charles (HKEx Chief Executive, Mr Charles Li), distinguished guests, ladies and gentlemen,
Good evening.
It is my great pleasure to join you all for this double celebration, the 13th anniversary of the Hong Kong Exchanges and Clearing Limited and the first LME Week Asia.
Hong Kong is delighted to host the first Asian edition of the LME Week. It builds on the success of the annual LME Week in London, a flagship event for the metals trading community. LME Week Asia turns its spotlight on our region and remarkable opportunities in Hong Kong and across Asia under the theme "Exploring New Horizons".
Over the past 13 years, HKEx has itself been exploring new horizons, not least through the acquisition of LME last December.
The global economic centre of gravity has been shifting from West to East since the recent global financial crisis. Major economies in Asia, in particular China and India, have become leading consumers and producers of commodities to fuel their development.
LME is the world's leading metal exchange with over 130 years of experience and a handsome global market share of around 80 per cent. By combining LME's expertise with HKEx's regional resources, infrastructure and network, a new powerhouse has been built to drive growth in the commodity futures market in Asia.
Commodity futures trading has become increasingly vibrant in this part of the world. The number of commodity futures contracts traded globally grew at an average annual rate of 20 per cent over the past five years, compared to 4 per cent for financial futures. The Asia-Pacific region is fuelling this growth, accounting for 57 per cent of the world's commodity futures trading in 2012, up from 38 per cent in 2007.
There is also growing demand for commodity derivatives in managing financial market risks.
With LME on the team, HKEx as a premier multi-asset-class exchange is best positioned to serve the needs of our country's real economy by offering an efficient and diversified platform for risk management and hedging purposes.
In January this year I had the pleasure of attending the opening of the HKEx's new Data Centre. It is an impressive facility in terms of both scale and ambition. Our Stock Exchange is the second largest in Asia and the sixth largest in the world by market capitalisation. It is consistently among the top five in the world for funds raised through initial public offerings. HKEx is also a key partner in promoting offshore Renminbi business.
With excellent connectivity to both the Mainland of China and international markets, HKEx plays an important part in fostering Hong Kong's role as China's global financial centre.
The Central Government in Beijing fully supports Hong Kong's development as an international financial centre and an offshore Renminbi centre. We will make the most of our unique advantages under the principle of "One Country, Two Systems" to connect the international financial community to the opportunities in the Mainland of China and Asia.
Not only is Hong Kong rated as the world's freest economy, we are also ranked third behind London and New York in the latest Global Financial Centres Index. Here in the Asian time zone, Hong Kong provides a vital link in today's round-the-clock and round-the-world financial trading cycle.
On my visit to New York earlier this month, I highlighted the importance of Hong Kong as a super-connector in the China-US economic and trade relationship. As well as meeting political and business leaders in the Big Apple, I also called on a number of financial heavyweights including former Treasury Secretary Mr Robert Rubin, the President of the Federal Reserve Bank of New York, the Chief Executive Officer of New York Stock Exchange, and top management of some global investment banks.
There is no doubt that Hong Kong provides the most efficient, open and transparent bridge between the world's two largest economies, China and the US. In most cases, before US companies test the water in the vast and complex markets in the Mainland of China, they come to Hong Kong first. They come to us for reliable, comprehensive and up-to-date information, for the best contacts and business partnerships; they tap into our ideas and our experience in doing business in each and every province of China.
Indeed, we are not just a super-connector between the Mainland and the US. We also perform the same function between the Mainland and Europe, Southeast Asia and other parts of the world.
Mainland Chinese companies also come to us for all the best information and contacts they need to do business with countries around the world. They can make use of our advantages as an international financial centre and seize the opportunity to "go global".
To our friends from overseas, I encourage you to make the best use of Hong Kong, Asia's world city, to connect to business partners from the Mainland of China and around the globe.
Finally, I would like to take this opportunity to welcome LME to our financial community and wish this inaugural LME Week Asia a great success. I also congratulate the HKEx on its 13th anniversary and thank the directors and staff for all their good and hard work.
Thank you very much and have a great evening. Thank you.
Ends/Monday, June 24, 2013
Issued at HKT 19:09
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