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Remarks by Mr.
Y.K. Choi, at the Signing
Ceremony for the Launch of 26 September 2005 Ladies and gentlemen, 1. On behalf of the Treasury Markets Forum of Hong Kong (TMF), I would like to welcome you all to this signing ceremony for the launch of retail renminbi non-deliverable forward contracts.2. Following recent reforms to the renminbi exchange rate regime, there is an increasing demand from small and medium-sized enterprises and other retail customers for financial products to hedge their renminbi exposures. In view of such market development, the TMF responded quickly and formed a Working Group in August to consider and develop a product to meet the market demand. The Working Group has now completed its study and recommended the launch of a product – retail Renminbi non-deliverable forward contracts, in Hong Kong. 3. I will leave it to Ms Anita Fung, the Chairman of the TMF’s Market and Product Development Sub-Committee, to explain the main features of the product to you. I would like to take this opportunity to thank Anita and other members of the Working Group for their contribution in developing the product within such a short time frame. This is a clear demonstration that the TMF, with the help and cooperation of market practitioners, is able to react to market developments quickly and efficiently, and this is very important for the development of Hong Kong’s treasury markets. 4. The conviction that “the whole is greater than the sum of its parts” is indeed what drove the establishment of the TMF last year. By bringing together bankers, brokers, corporate treasurers and other market professionals, the TMF’s objective is to raise the level of professionalism of market practitioners and the overall competitiveness of Hong Kong’s treasury markets. 5. The TMF has made a number of achievements since its establishment last year. The launch of this retail renminbi NDF product is a clear example of how the TMF leverages on the coordinated efforts of its members to drive market and product developments. 6. This spirit of cooperation actually extends beyond market and product developments. Last year, the TMF joined hands with the ACI-The Financial Markets of Hong Kong (ACIHK) to launch a membership drive. As a result, ACIHK’s membership rose sharply from 500 to more than 2,000. Furthermore, an educational programme was launched concurrently in conjunction with two local universities, with the aim of raising the professionalism of treasury market practitioners in Hong Kong. 7. Apart from these achievements, the TMF has also contributed to the promotion of Hong Kong’s treasury markets, through participating in conferences and exhibitions overseas and on the Mainland, and in the formulation of industry codes and standards. These efforts have been made a lot more effective by having the industry participants working together through the TMF platform. 8. To consolidate the success achieved so far by the TMF, and to provide a solid institutional structure to take forward further initiatives for market development, the TMF is working to establish a Treasury Markets Association (TMA) through a merger with the ACIHK. Preparatory work is progressing well and we expect the TMA to be formally established by the end of this year. The TMA will continue to work closely with the industry to foster financial innovation, enhance the skills of market professionals and strengthen Hong Kong’s position as a regional hub for treasury markets business. 9. I believe that the achievements made by the TMF so far, including the launch of the retail renminbi NDF product today, are only a start. The establishment of the TMA later this year should provide an even better platform from which to continue and intensify these collaborative efforts. 10. Last but not least, I would like to thank once again all the Working Group members for their efforts in developing and launching this retail RMB NDF product in such a short time. This is a very good demonstration of the efficiency of bankers in this vibrant and dynamic market. 11. Thank you.
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