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SFS stresses the need to sharpen HK's competitive edge
The Secretary for Financial Services, Mr Rafael Hui, said the Government was committed to ensuring that Hong Kong's firm foundation would continuously be improved in keeping with developments in the financial markets internationally.
Speaking at the Hong Kong Management Association Theme Year Talk on Finance this (Friday) evening, Mr Hui said Hong Kong was and would be sharpening its competitive edge in financial intermediation in the face of increasing regional competition.
He stressed that Hong Kong could not be complacent and would need to continue with investments into the future if it was to continue to be successful.
Mr Hui said these investments included physical infrastructure, telecommunications, human resources and training.
"All such investments need to be financed and this is where financial intermediation features," he said.
Mr Hui said financial intermediation presented as one of the major challenges for Hong Kong which would be featured prominently as a leading international financial centre in the region.
Mr Hui noted that most Asian economies were improving their financial "prisms", which would in turn contribute to more effective financial intermediation, and hence greater economic efficiency.
The financial "prisms", according to Mr Hui, is the five pre-conditions for effective financial intermediation:
"P" stands for abundance and sophistication in financial PRODUCTS;
"R" stands for effectiveness in RISK assessment;
"I" stands for robustness in market INFRASTRUCTURE;
"S" stands for SUPERVISORY prudence; and
"M" stands for MONETARY stability.
In his speech, Mr Hui also explained in length the "prisms" in Hong Kong.
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