ENG-2010 — Page 115

Financial and Monetary Affairs 73

licensed corporations, banks and insurance companies also participate in asset management business.

Hong Kong operates one of the most active physical gold markets in the world. Spot gold can be traded through two closely related yet independent markets in the city the Chinese Gold and Silver Exchange Society and the loco London gold market. The Society, established in 1910, provides trading of both tael and kilo bars4. Prices track closely those in the major gold markets in London, Zurich and New York. In addition, Hong Kong is among the largest over-the-counter gold trading centres in Asia with strong growth in recent years.

Hong Kong continues to be one of the most open insurance centres in the world. Among the 168 authorised insurers at year's end, 80 were from 20 overseas countries or the Mainland. Twelve of the world's top 20 insurers were authorised to conduct insurance business in Hong Kong either directly or through a group company. There were 19 professional re-insurers in Hong Kong, including most of the world's top re-insurers. Gross premium income in 2010 was $207* 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 2010, Standard & Poor's upgraded Hong Kong's long-term foreign- and local-currency ratings from 'AA+' to 'AAA', the highest ever assigned by a credit rating agency to Hong Kong, with 'Stable' outlook. Moody's, Fitch and R&I also upgraded or affirmed Hong Kong's ratings during the year.

Major Initiatives in 2010

Continued efforts were made in 2010 to enhance Hong Kong's competitiveness as an international financial centre in general and to develop Hong Kong as a capital formation centre, asset management centre and, in particular, an offshore RMB business centre. 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 China's Global Financial Centre

To build on Hong Kong's strength as China's global 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.

4

*

Tael bars are of 99 per cent fineness and weighted in taels (one tael equals approximately 1.20337 troy ounces). Kilo bars are of 999.9 parts per thousand fineness and weighted in kilograms.

Provisional Statistics