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"The Central Moneymarkets Unit of the Hong Kong Monetary Authority now handles over 150 issues with an outstanding value of $90 billion.
"The Unit has established links with major international clearing systems to provide overseas investors with easy access to the Hong Kong debt market."
new loan
Bank supervision has been strengthened by introducing a classification system and a more comprehensive regime for regulating liquidity, Sir Hamish said.
"A major priority for the year ahead will be to draw up further guidelines for financial derivatives to ensure better management of the risks associated with these products.
"We will also amend the Banking Ordinance to improve further the legal framework for banking supervision."
The banking sector has been brought into closer line with international practice by requiring the disclosure of more information, Sir Hamish said.
The Government will soon be consulting relevant bodies on detailed legislative proposals to streamline and rationalise the "fragmented legal framework" for the securities and futures markets, he said.
Other areas where work is also being done include improvement to the protection of insurance policy holders, undertaking of a comprehensive review of the insolvency legislation and reforms of the legal and administrative systems to protect intellectual property.
Sir Hamish said these examples illustrated "a very important point about the role of the Government".
"It does not generate the community's wealth, but it does a great deal to ensure that we maintain an environment in which prosperity can be created and competition can flourish.
"Having provided the framework, it is then the Government's duty to leave entrepreneurs and investors free to get on with the business of generating wealth.
"That this approach works is evident from our record of economic growth and from the praise which we have received from foreign observers."
End/Wednesday, March 1, 1995