ENG-2005 — Page 101

Chapter 4

Financial and Monetary Affairs

Hong Kong's status as an international financial hub is assured thanks to its booming banking and insurance business and a stock exchange that ranks second in Asia and eighth in the world. The financial sector accounts for about 5.3 per cent of Hong Kong's total workforce, employing

179 500 people and it contributes 12.2 per cent of the Gross Domestic Product.

Hong Kong is one of the most vibrant international financial centres in the world with sophisticated financial infrastructure, world-class financial professionals, a sound regulatory regime, which is on a par with international standards, and high liquidity and efficiency. The Government's policy is to further reinforce Hong Kong's position by making continuous improvements to the regulatory system, promoting corporate governance, strengthening investor protection, fostering market development and enhancing links and cooperation with the Mainland.

Hong Kong had a number of major achievements in 2005 including:

becoming the world's 15th largest banking centre in terms of external assets and sixth largest centre for foreign exchange trading;

• its stock market being ranked eighth worldwide and second in Asia in terms of market capitalisation and fifth worldwide and first in Asia in terms of equity funds raised;

• asset management business topping $3,600 billion;

• total outstanding Hong Kong dollar debt securities reaching $664 billion at year-end, up from $608 billion a year earlier;

• total assets of Mandatory Provident Fund (MPF) schemes growing to $151.36 billion by year-end. About 98.2 per cent of employers, 97.4 per cent of relevant employees and 77.6 per cent of self-employed people have enrolled in MPF schemes;

• continuing to be one of the most open insurance markets in the world and achieving an annual growth in premium of 17 per cent for the last five years.

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