ENG-2009 — Page 118

70 | Financial and Monetary Affairs

Hong Kong continues to be one of the most open insurance centres in the world. Among the 171 authorised insurers at year's end, 82 were from 20 overseas countries or the Mainland. Fourteen of the world's top 20 insurers are authorised to conduct insurance business in Hong Kong either directly or through a group company. There were 19 professional reinsurers in Hong Kong, including most of the world's top reinsurers. Gross premium income in 2009 was $185.7* billion.

The Government, including the Hong Kong Monetary Authority (HKMA) in particular, seeks to foster a better understanding of Hong Kong's economic and financial strengths among international credit rating agencies. In November 2009, Moody's upgraded the outlook for Hong Kong's local and foreign-currency ratings. from 'Stable' to 'Positive', reflecting recognition of Hong Kong's credit strengths, particularly its strong external asset position and healthy public finances.

Major Achievements in 2009

Continued efforts were made in 2009 to enhance Hong Kong's competitiveness as an international financial centre in general and develop Hong Kong as a capital formation centre, asset management centre and offshore RMB business centre in particular, as pledged in the Chief Executive's October 2009 Policy Address. The Government continues to work closely with regulators and the industry to optimise Kong Kong's regulatory framework. It also continues to press ahead with various initiatives to develop further Hong Kong's fund-raising, wealth management and RMB business.

Enhancing Hong Kong's Competitiveness as a World Financial Centre

To build on Hong Kong's strength as an international financial centre, the Government optimises its regulatory framework to keep abreast of local and international developments, to enhance the quality of its markets and to increase their depth and breadth.

Optimising the Regulatory Framework

An effective regulatory regime is a pre-requisite to maintaining investor confidence and Hong Kong's standing as an international financial centre. During the year, the Government, the Hong Kong Monetary Authority and the Securities and Futures Commission implemented measures to better regulate the securities business conducted by banks and to strengthen investor protection. The HKMA took steps to require banks to attach 'health warnings' to retail derivative products, to audio-record the sales process of investment products and to separate clearly general banking business from securities-related activities. The SFC also launched a public consultation on the need for products' key facts statements, introduction of cooling- off periods, disclosure of commissions and fees and other relevant initiatives.

Hong Kong's financial system emerged from the global financial crisis without systemic problems, thanks to its robust regulatory regime. The financial tsunami

Provisional statistics