XN000022-1996-02-07 — Page 23

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The markets themselves are of course very much alive to the need to improve market infrastructure. For instance, the recent launch by the Stock Exchange of Hong Kong of the second trading terminal has enhanced the operational efficiencies of the Exchange's trading system, expanded market capacity, shortened communication time and provided more secure back-up facilities. Government fully supports such initiatives, and encourages the markets to continue such efforts.

One of the most invaluable assets of Hong Kong is our well-trained and adaptable workforce. In the financial services sector human resources are of particular importance. Government is committed to ensuring that there is an adequate supply of trained manpower at various levels to continue to service our financial services industries. A case in point is the focus on language proficiency, arguably one of the most essential ingredients for a competent workforce for the financial services sector. And I am Glad that almost all members this afternoon have also expressed concerns regarding the standards of our language skills of our workforce. Related initiatives include the establishment of a Language Fund with a Government injection of $300 million to fund projects to raise the standards of English and Chinese. The draft Education Commission Report Number Six has specifically addressed the subject of language proficiency where it is recommended that, as a priority, Government should put in place an institutional framework to enable research to be conducted into the language needs of Hong Kong, to develop policies, and to have such policies monitored and evaluated in a coherent and systematic manner.

Regarding access to our financial markets, Hong Kong is probably one of the most open systems in the world. International service providers are free to enter the Hong Kong market, subject to their meeting the prudential criteria for admission, which seek to ensure that fit and proper persons are admitted. There is no discriminatory treatment against overseas companies. We have actively participated in the negotiations on the General Agreement on Trade in Services in the context of the World Trade Organisation and intend to maintain our open system and seek to ensure access for Hong Kong companies. As for investors and buyers of financial products available in Hong Kong, there is again no barrier for entry into our markets. Such openness has attracted a critical mass of providers of financial services and products, as well as investors to Hong Kong. Their presence and active participation in Hong Kong's financial markets have ensured liquidity and diversity - all essential ingredients to a successful financial market. We are firmly committed to maintaining our open system.