Permanent Secretary for Financial Services & the Treasury (Financial Services) Au King-chi has called for caution to ensure Hong Kong's financial stability.
Speaking at a seminar held by the Securities & Investment Institute today, she said the financial industry witnessed robust growth in the first half of the 2010s, as indicated by a 45% expansion in equity market capitalisation since 2009 as well as a doubling of banks' loan portfolios, asset managers' assets under management and life insurance premiums in the same period.
While Hong Kong's financial system has withstood periodic shocks since 2010, she said that given the openness of the local market, there was no room for complacency in ensuring financial stability.
"Sustaining our 'international' DNA by adopting global practices and maintaining market quality are keys to enhance our attractiveness to the '3I' s, namely issuers, intermediaries and investors, from around the world and keep Hong Kong well-connected with the global financial system," Miss Au said.
"To enhance market quality, we are pursuing an active policy agenda to improve our regulatory regime for better investor protection, more efficient market infrastructure, as well as market-friendly statutes and rule books.
"Public consultations on the Deposit Protection Scheme and Risk-based Capital framework for insurers have just been rolled out, and the legislation for a scripless securities market was introduced into the Legislative Council this June."
