ENG-2007 — Page 127

Financial and Monetary Affairs 87

Pan-Pearl River Delta Cooperation

In June 2007, the Chief Executive led a delegation to Hunan to take part in the 'Fourth Pan-Pearl River Delta Regional Cooperation and Development Forum', and the Financial Services and the Treasury Bureau (FSTB) led 35 delegates from Hong Kong's financial services sector to the 'Pan-Pearl River Delta Regional Financial Cooperation Forum'. The HKEX also led a delegation of intermediaries to the Mainland to promote Hong Kong as the premier capital raising centre for Mainland enterprises.

To keep up the momentum, the FSTB will organise another such visit to Guangdong in 2008.

Enhancing Hong Kong's Competitiveness as an International Financial Centre

The Government is committed to strengthening Hong Kong's competitiveness as an international financial centre and the premier capital formation centre for the Mainland through enhancing its regulatory regime, promoting corporate governance, upgrading financial infrastructure and fostering the development of the bond market.

In 2007, enhancement of Hong Kong's regulatory framework continued in the light of international experience and standards to ensure sound business standards and confidence of the market without unnecessary impediments. Major initiatives were pursued to enhance Hong Kong's competitiveness as an international financial centre.

Upgrading the Quality of Financial Reporting

Quality financial reporting is of paramount importance for upholding Hong Kong's corporate governance regime. The Hong Kong Financial Reporting Standards (HKFRS), which are issued by the HKICPA, have been fully convergent with the International Financial Reporting Standards (IFRS) since January 2005. This uniform accounting platform, well understood by global investors and financial analysts, enables the comparison of corporations and their results in different jurisdictions, and leads to greater confidence in the transparency and quality of Hong Kong's financial markets.

In addition, the Government is acutely aware of the need to maintain an effective, transparent and accountable regulatory regime for the accountancy profession that is on a par with international standards. With the enactment of the Financial Reporting Council Ordinance in July 2006, the Financial Reporting Council (FRC) was established on December 1, 2006 and became fully operational on July 16, 2007. The FRC is a new statutory body tasked to investigate audit irregularities and accounting non-compliances of listed companies in Hong Kong. It is one of the key initiatives of the Government to upgrade the quality of financial reporting, promote the integrity of the accountancy profession, enhance corporate governance, and protect investors' interest.

Expanding the Sources of Listed Enterprises on the Exchange

Hong Kong has established itself as the premier capital formation centre for the Mainland. Mainland enterprises raised a total of $1,849.50 billion in the past years.