ENG-2008 — Page 109

Chapter 4

Financial and Monetary Affairs

Hong Kong ranks highly as an international financial centre, reinforced by its well established and regulated banking, securities and insurance business. The stock exchange is the third largest in Asia and seventh largest in the world in terms of market capitalisation. With a workforce of 204 000, or 5.8 per cent of the total workforce, the financial sector contributes some 19.5 per cent of GDP.

Hong Kong is one of the most vibrant international financial centres in the world with a 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 co-operation with the Mainland.

Hong Kong made a number of major achievements in 2008 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;

• 716 companies are licensed or registered to conduct asset management business, 16 per cent up on 2007;

• total outstanding Hong Kong dollar debt securities (including the Exchange Fund Bills and Notes) exceeding $716 billion at year-end, compared with $764 billion a year earlier;

• total assets of Mandatory Provident Fund (MPF) schemes were $209 billion by year-end. About 99.8 per cent of employers, 98 per cent of relevant employees and 73.7 per cent of self-employed people have enrolled in MPF schemes;

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