Good corporate governance is vital to attracting high-quality companies to list in Hong Kong and prudent investors to participate in our market.

This was the message from the Secretary for Financial Services & the Treasury today, outlining the Government's initiatives to upgrade the corporate governance of listed companies and the quality of our equity market.

Frederick Ma was speaking at the Venture Capital/Private Equity Partnership Conference jointly organised by the Venture Capital Association and the General Chamber of Commerce.

He said that together with the Securities & Futures Commission and HK Exchange, the Government has drawn up a Corporate Governance Action Plan.

"Consultations have just been completed or are being conducted on a number of proposals, notably the tightening of the regulation of Initial Public Offering intermediaries and a series of recommendations put forward in the Corporate Governance Review Phase II Report of the Standing Committee on Company Law Reform," he said.

The Government will soon consult the public on how to enhance the listing regime and to provide statutory backing to listing rules.

Discussions with the accounting profession on improvements to their regulatory regime have also been initiated.

"In the world of financial services, professional accountants play a key role in ensuring that a true and fair view is provided to the public, in particular the investors, on the state of the companies," Mr Ma said.

The Society of Accountants responded positively by putting forward proposals to add lay members to its council and committees and set up an independent investigation board.

A consultation paper was published last week to invite public views on the society's proposals and some other suggestions for further enhancing the transparency and independence of the system for regulating the accounting profession and for setting up the Financial Reporting Review Panel.

However, Mr Ma said: "A road map to improve the corporate governance regulatory regime, no matter how comprehensive it is, can only provide an infrastructure. It is the integrity and quality of the people that is most important."