78 | Financial and Monetary Affairs
Asset Management Centre
Hong Kong with its strong asset management foundation and world-class financial infrastructure benefits greatly from the huge demand for wealth and asset management services in the Mainland. Thanks to the continuing inflows of investment capital into the Asia Pacific region, Hong Kong is also well placed to become Asia's premier asset management centre. The city's combined fund management business was valued at $10,091 billion at the end of 2010, about 66 per cent of which came from non-Hong Kong investors, underlining the city's strong appeal to foreign investment capital. At the end of 2011, there were 90 approved fund management groups managing 1 836 unit trusts and mutual funds authorised by the Securities and Futures Commission (SFC).
During the year, the Government led a promotion campaign in New York, Zurich, Geneva and Luxembourg to showcase Hong Kong's status as China's global financial centre and to help promote Hong Kong as a premier asset management hub in the region.
Proposed Establishment of an Independent Insurance Authority
The Government is considering establishing an independent Insurance Authority (IA) to enable it to operate more flexibly to meet regulatory challenges and to better prepare Hong Kong for a risk-based capital regulatory regime.
The stakeholders and the public were consulted on the matter and the consultation's initial results were announced in June 2011. Draft legislation for the proposed IA is being prepared for another round of consultation in 2012.
Modernising the Companies Ordinance
After a series of public consultations on topical issues and the draft bill, the Government introduced the Companies Bill into the Legislative Council in January 2011. The bill seeks to rewrite and modernise the provisions relating to the operation of live companies in the Companies Ordinance (CO). Taking account of developments regarding company law in other comparable jurisdictions, the bill aims. to enhance corporate governance, ensure better regulation and facilitate business by providing a modernised legal framework for the establishment and operation of companies, thereby enhancing Hong Kong's status as a major international business. and financial centre.
Since the introduction of the bill into the Legislative Council, the Government has been working closely with the Legislative Council Bills Committee. Subject to the making of necessary subsidiary legislation after the enactment of the bill targeted for 2012, the Government expects the new CO to commence operation in early 2014.
Modernising Corporate Insolvency Law and Providing a Legal Framework for Corporate Rescue Procedure
The Government has launched an exercise to modernise the corporate insolvency provisions under the CO, to facilitate more efficient administration of the winding-up of companies, to better protect creditors, and to introduce a new