Speech by FS at inauguration ceremony for the Hong Kong Private Equity Finance Association (English only) (with photos/video)

Speech by FS at inauguration ceremony for the Hong Kong Private Equity Finance Association (English only) (with photos/video)
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     Following is the speech by the Financial Secretary, Mr John C Tsang, at the inauguration ceremony for the Hong Kong Private Equity Finance Association today (December 5):

Simon (Ho), Sir David (Akers-Jones), distinguished guests, ladies and gentlemen,

     Good evening.

     It is my great pleasure to join you all for this important occasion. First and foremost, I wish to congratulate the Hong Kong Private Equity Finance Association on its inauguration. This is another milestone in the development of our financial services industry.

     Private equity is a key component of our asset management sector and its growth and development in recent years has been encouraging. At the end of September this year, total capital under management in our private equity funds accounted for about one-fifth of Asia's total, amounting to some US$100 billion. In the first nine months of this year, Hong Kong raised some US$10 billion of private equity funds, which is about 30 per cent of total funds raised in Asia.

     Investors from around the world are increasingly seeking to tap the opportunities in Asia. At the same time, our region has a growing number of high-net worth individuals who are keen to explore investment options beyond Asia. As a global financial centre in the Asian time zone with free flows of information and capital, a robust regulatory regime and a simple tax system, Hong Kong is the natural nexus to bridge this two-way flow of capital.

     We are facing ever stronger competition from other financial centres in our region. We cannot be complacent. Hong Kong's greatest advantage is two-fold. On the one hand, we have in-depth knowledge and experience of the financial system and investor mindset in the Mainland of China. At the same time, Hong Kong has effective and efficient connectivity to financial hubs around the world.

     The Hong Kong Government is proactive in sharpening our city's competitive financial edge. In my Budget in February this year, I proposed legislative amendments to introduce open-ended investment companies. I also proposed extending the offshore tax exemption regime to private equity funds. My colleagues are now taking forward these proposals. We also note that the Financial Services Development Council has included the industry's recommendations on these two initiatives in reports issued last month. We welcome ideas and suggestions from your Association on ways to further facilitate the industry's competitiveness.

     With your professional expertise, I am confident that the Hong Kong Private Equity Finance Association will play a leading role in fostering the growth of the private equity and venture capital industry here.

     I wish the Association every success in its pursuit of excellence for the industry in the years ahead.

     Thank you.

Ends/Thursday, December 5, 2013
Issued at HKT 18:45

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