ENG-2004 — Page 105

Chapter 4

Financial and Monetary Affairs

The financial services sector is

one of the pillars of Hong Kong's economy. Encompassing key services such as banking, securities, insurance, fund management and other related services, the sector accounts for about 5.3 per cent of Hong Kong's total workforce, employing 175 000 people. Being a high value-added sector, its contribution to the Gross Domestic Product is disproportionately high, at 13 per cent.

Hong Kong is an international financial centre with an integrated network of financial institutions and markets. The Government's policy is to maintain and further develop an appropriate legal,

appropriate legal, regulatory, infrastructural and administrative framework, with the aim of providing a level playing field for all market participants, maintaining the stability of the financial and monetary systems and enabling Hong Kong to compete effectively with other major financial centres.

Major achievements in 2004 included:

• Hong Kong became the world's 11th largest banking centre in terms of external assets and sixth largest centre for foreign exchange trading.

• Hong Kong's stock market ranked ninth worldwide in terms of market capitalisation and third in terms of equity funds raised.

• The Hong Kong dollar debt market continued to grow in 2004. The total outstanding amount of Hong Kong dollar debt securities reached $608 billion at year-end, up from $558 billion a year earlier.

• Total assets of Mandatory Provident Fund (MPF) schemes grew to about $120.18 billion at year-end. About 97.9 per cent of employers, 96.2 per cent of relevant employees and 79.6 per cent of self-employed people have enrolled in MPF schemes.

Hong Kong as an International Financial Centre

A favourable geographical position, bridging the time gap between North America and Europe; strong links with the Mainland and other economies in South- East Asia and excellent communications with the rest of the world; rule of law; a level

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