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Chapter 4

Financial and Monetary Affairs

Hong Kong stands tall as an international financial centre continually reinforced by its booming banking, securities and insurance business. Its bustling stock exchange ranks third in Asia and seventh in the world, in terms of market capitalisation. With a workforce of 191 000, or 5.5 per cent of the working population, the financial sector contributed 16 per cent of the year's 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 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 made a number of major achievements in 2007 including:

• continuing to be 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 seventh worldwide and third in Asia in terms of market capitalisation; fourth worldwide and second in Asia in terms of equity funds raised through initial public offerings; and fifth worldwide and second in Asia in terms of total equity funds raised;

• its asset management business topping $6,154 billion;

• total outstanding Hong Kong dollar debt securities exceeding $750 billion at year-end, up from $748 billion a year earlier;

• total assets of Mandatory Provident Fund (MPF) schemes growing to $264.79 billion by year-end. About 99.5 per cent of employers, 97.6 per cent of relevant employees and 75.1 per cent of self-employed people have enrolled in MPF schemes;