FINANCIAL AND MONETARY AFFAIRS
94
as a liquid asset free of credit risk. Trading in these instruments has been highly active, with daily turnover averaging $22.3 billion in 1994, representing almost half of the amount outstanding.
With the establishment of longer-term benchmarks, the maturity profile of new issues in fixed rate Hong Kong dollar debts has lengthened considerably. In 1991, paper of longer than seven years' maturity accounted for less than four per cent of the total issued value, but the proportion increased to six per cent in 1994. Supra-nationals have also been encouraged to tap the longer-term Hong Kong dollar debt market. By the end of the year, five issues had been launched by the World Bank, seven by the International Finance Corporation, five by the Asian Development Bank, four by the Nordic Investment Bank, two by the European Bank for Reconstruction and Development and one by the European Investment Bank and the Inter-American Bank, respectively. The maturity of these issues ranged from three to eight years.
The fact that many of these issues involve redemption after the reversion of the territory's sovereignty to China in 1997 clearly demonstrates investor confidence in the future of Hong Kong. This confidence was further evident from the favourable market response to the first three-year and five-year Exchange Funds Notes issued in 1994 that will straddle July 1, 1997. The tenders were very encouraging, with respective over-subscription rates of 4.5 times and 2.1 times. The notes were traded with a very narrow spread over the US Treasury notes of equivalent maturity, of 38 basis points and 37 basis points, respectively, at the issue dates.
-The World Bank/IMF Meeting in 1997
In August, the World Bank and the International Monetary Fund (IMF) announced that their 52nd annual meetings will be held in Hong Kong in September 1997, shortly after the reversion of sovereignty to China. Two months later, a memorandum was signed between Hong Kong and the World Bank and IMF, setting out the territory's obligations in providing such services and facilities as meeting rooms, temporary offices and hotel accommodation. The HKMA will co-ordinate the planning for the 1997 annual meetings.
More than 10 000 participants from the world financial community, including finance ministers, central bank governors, leading bankers and the press corps, are expected to be present on the occasion. The staging of such a prestigious event will be a timely affirmation of Hong Kong's continuing status as an international financial centre.
Companies Registry
The Companies Registry's main functions and responsibilities include the incorporation and registration of companies; the administration and enforcement of the Companies Ordinance and a number of other ordinances (including the Trustee Ordinance as this relates to trust companies, the Registered Trustees Incorporation Ordinance and the Limited Partnerships Ordinance); the registration of documents required to be lodged by registered companies; and the provision of facilities for the search of company records.
It was a year of consolidation and improvements for the registry, which became an independent department operated on a trading fund basis in 1993. As a trading-funded department, the registry is allowed to retain part of its income and, unlike a vote-funded department, is able to apply its income flexibly, commensurate with its needs, business