Speech by SFST at Accounting and Financial Reporting Council Regional Regulatory Forum Dinner Reception (English only)
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David (Chairman of the Accounting and Financial Reporting Council (AFRC), Dr David Sun), Janey (Chief Executive Officer and Executive Director of the AFRC, Ms Janey Lai), distinguished guests, ladies and gentlemen,
Good evening. It is my honour to join you all tonight at this dinner reception. First of all, I extend a warm welcome to all guests who have gathered here from near and far. Your presence and active participation in this forum send a strong message of confidence and firm support for Hong Kong's capital markets, reflecting the deep trust placed in our city as a leading international financial centre.
Hong Kong's accounting profession underpins its position as a global financial hub, with a robust and highly regulated community of practitioners. There were over 48 000 certified public accountants, of whom around 5 000 held practicing certificates authorising them to sign auditors' reports, at end of October this year. Supporting this talent pool are approximately 1 200 registered audit firms and 700 corporate practices overseen by the AFRC. This strong professional infrastructure not only ensures rigorous financial oversight but also enhances Hong Kong's competitive edge in cross-boundary wealth management and international capital markets.
This evening is not only a celebration of dedication and expertise but an opportunity to reflect on the pressing issues that shape the future of our financial markets and profession. Over the course of today's fruitful discussions, we have explored critical aspects of governance that help to build trust and strengthen the resilience of our capital markets. These conversations remind us of the vital role that robust frameworks and ethical leadership play in sustaining market integrity and investor confidence.
Sustainability reporting in Hong Kong
Equally prominent were the dialogues on sustainability disclosure, emphasising how stakeholder engagement is essential to cultivating transparent and reliable reporting. As Hong Kong intensifies its commitment to sustainable finance, clear and meaningful communication remains fundamental to driving real progress and fostering trust from our investors. On this front, we introduced the "Roadmap on Sustainability Disclosure in Hong Kong" last December. This initiative aims to guide key public interest entities toward full adoption of the International Sustainability Standards Board Standards by 2028, establishing a consistent global framework for sustainability reporting.
The AFRC has played a significant role in promoting sustainability assurance. The AFRC's forthcoming public consultation on a proposed local regulatory framework for sustainability assurance represents an important step forward, underscoring our dedication to aligning Hong Kong's regulations with global standards and advancing the profession's development.
The forum has also highlighted quality challenges that the accounting and auditing sectors face in pursuit of long-term sustainability. Maintaining high professional standards is the backbone of our industry's credibility, and addressing these challenges requires continuous vigilance, innovation, and collaboration. Another interesting topic covered at the forum was the profound impact of technological breakthroughs, especially artificial intelligence (AI), on accounting and auditing practices. The AI revolution presents both extraordinary opportunities and complex risks. Navigating this new landscape demands that we adapt our skills, frameworks, and regulatory approaches to ensure that technology enhances confidence in financial reporting.
Hong Kong's strategic response
Hong Kong stands ready to meet these challenges head-on. We recognise that strengthening governance, improving disclosure as well as embracing innovation are not standalone goals but interconnected efforts vital for our sustained success as an international financial centre. Hong Kong has consistently benefited from strong national backing and extensive global connections. Through sustained efforts to enhance our financial infrastructure, Hong Kong has secured the top position in the Infrastructure pillar of the Global Financial Centres Index 38. These achievements demonstrate the confidence investors have in our financial markets and further solidify Hong Kong's position as a key "super connector" linking Chinese Mainland with international markets.
Building on our strong regulatory foundations, we continue to refine policies to improve transparency and accountability, while embracing the major trends, such as fintech and green finance, to keep pace with the development of the market. For instance, we are proactively seizing the vast potential of fintech by building on the momentum of Project Ensemble, which facilitates live trading of tokenised assets and standardising the issuance of tokenised bonds.
The AFRC has a crucial part to play, which expertise, diligence, and integrity underpin the trust that global investors place in our markets. As new technologies reshape workflows and new sustainability expectations redefine disclosure norms, the role of the AFRC will grow even more indispensable in safeguarding the reliability of our financial ecosystem.
Hong Kong's future as a premier financial hub depends on our ability to merge tradition with innovation, uphold rigorous quality standards, and promote open engagement between all market participants. The insights shared today will guide us in thinking deeper about professional development agendas, ensuring that Hong Kong continues to offer a world-class platform for capital formation.
In closing, let me express my excitement to the Accounting and Financial Reporting Council for convening this important forum. My sincere thanks to all speakers, panelists, and attendees for your commitment to advancing excellence in governance, sustainability, quality, and technology within accounting and finance. Let tonight be an occasion to strengthen our connections, inspire new ideas, and renew our shared dedication to building a trusted and forward-looking financial market.
Last but not least, I encourage all financial market participants to actively participate in the coming Legislative Council General Election on December 7 by casting your votes. It is of utmost importance for accelerating the development of Hong Kong's economy and our markets. Thank you.
Ends/Monday, November 10, 2025
Issued at HKT 20:05
Issued at HKT 20:05
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