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CS speaks at ACCA Hong Kong Annual Conference 2009 (English only) (with photo)
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Following is the speech by the Chief Secretary for Administration, Mr Henry Tang, at the ACCA (the Association of Chartered Certified Accountants) Hong Kong Annual Conference 2009 at the Hong Kong Convention and Exhibition Centre this morning (June 27) (English only):

Judy (Wong), distinguished guests, ladies and gentleman,

Good morning. It is a great pleasure to join you this morning on a Saturday

I would like to take this opportunity to thank you all for your hard work and determination in the face of the current global financial crisis. Your dedication and expertise have helped our city to maintain its position as a leading global financial centre during these uncertain times.

I know you have a very busy day ahead of you, especially on a Saturday, with a lot of very distinguished speakers who will come after me, so I won't speak for long. I also don't intend to predict how or when the crisis will end. I will leave that topic for the expert speakers at this conference to discuss.

Instead, I will briefly highlight the Government's response to the global financial crisis to help set the scene for your discussions today.

The first quarter of this year was a low point for our economy. In the first three months, GDP contracted by 7.8 per cent and total trade declined by 23 per cent year-on-year. On a brighter note, our financial system remains sound and our stock market has remained the 7th largest in the world and 3rd largest in Asia.

Responding to the first quarter performance, we announced a $16.8 billion stimulus package last month, to give our economy a timely shot in the arm. So far, we have provided more than $87 billion to help our economy and our community and residents to weather the storm. Government infrastructure projects are being expedited to help create some 60 000 jobs and special measures have been introduced to help the small and medium enterprises ¡V including a $100 billion Special Loan Guarantee Scheme.

To stabilise the banking sector, the Hong Kong Monetary Authority has offered additional liquidity to banks should they need it. We have also guaranteed deposits placed with all authorized institutions in Hong Kong until the end of 2010. We are confident that our financial regulatory framework does not pose any systemic risk of failure. However, there is no room for complacency.

Now more than ever, we need to enhance our regulatory regime to provide a better and more conducive environment for businesses, not only to cope with the crisis, but also to emerge from it stronger than before.

The collapse of US investment bank Lehman Brothers last September was perhaps the most significant turning point in the global financial crisis so far. It sent shockwaves around the world and forced governments to review their regulatory policies. In our case, both the HKMA and the Securities and Futures Commission have recommended establishing a dispute resolution mechanism for the financial industry. We are considering whether to set up a financial services ombudsman by statute. We plan to consult the market on some of these proposals by the fourth quarter this year. We look forward to your views on this initiative.

In addition, to provide better protection for insurance policyholders, we are working with the insurance industry to take forward proposals for establishing a policyholders protection fund.

In addition to fine-tuning our regulatory framework, the Government is also spearheading a number of measures to facilitate financial market development.

For one thing, we are looking at how to improve our listing regime. One avenue for this would be to codify key listing requirements for issuers. We are also promoting Hong Kong as a prime listing location for overseas firms, particularly in emerging markets.

Earlier this month, the Financial Secretary visited Russia to promote our city's attributes as a capital-raising centre.

We are also planning to launch a Government Bond Programme with a view to promoting the further and sustainable development of the local bond market. Subject to the necessary approval by the Legislative Council, we look forward to bringing about the first launch under the Programme as soon as possible.

We also plan to consult the public on a draft provision of the Companies Ordinance by the end of the year. And just a couple of days ago, we launched a public consultation on a review of the Trustee Ordinance.

I encourage you, the experts, to contribute your views to these important initiatives.

The government will continue to focus our effort and energy on maintaining a steady course through the economic storm. We note that there are signs that the pace of economic downturn in Hong Kong has slowed a little in the past month or so. Equally encouraging are green shoots of recovery that appear to be emerging on the Mainland where manufacturing expanded for the third month in a row in May.

Of course, this is too early to say we are on the road to recovery. We still have a long way to go and we are not out of the wood yet. But, as economists like to say ¡V things are getting worse more slowly.

I am confident that the resilience and creativity of our financial talent will help us withstand the downturn and achieve our goal of creating opportunities out of the financial challenges.

Indeed, this conference is an important part of the brainstorming process.

I wish you all an enjoyable and fruitful day and I look forward to hearing more about your views on the financial crisis and how we can maintain Hong Kong's position as a leading global financial centre.

Thank you.

Ends/Saturday, June 27, 2009
Issued at HKT 10:21

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