Improvements to corporate governance will boost the market's quality and safeguard investors' interests, the Secretary for Financial Services & the Treasury Frederick Ma says.

This will also further strengthen Hong Kong's position as the Mainland's premier capital-formation centre and international financial hub.

Speaking on a radio talk show this morning, Mr Ma said the Government will study the Hong Kong Stock Exchange's proposal to set up a subsidiary to vet listed companies.

On Hong Kong's bond market, he believed that it is conducive to capital growth and economic development, adding that investors are offered more choices.

To encourage public utilities to issue bonds, the Government has recently implemented measures like tax concessions and simplifying relevant procedures.

Substantial progress has been made, Mr Ma said, with the KCR and MTR Corporations taking part in the bond market.