ENG-2016 — Page 99

4

Financial and Monetary Affairs

Bond Market

The Government Bond Programme promotes the development of the bond market in Hong Kong. It has a borrowing ceiling of $200 billion. Successful issuances of institutional bonds, retail inflation-linked bonds and Islamic bonds in the past testify to the vibrancy and robustness of the local bond market.

Bonds totalling $16.4 billion were issued to institutional investors under the programme in 2016. In June, under the retail part of the programme, the government issued a $10 billion inflation-linked retail bond (iBond) with a tenor of three years, for the sixth consecutive year to Hong Kong residents. Then in August, the government issued a $3 billion inflation-linked Silver Bond, with a tenor of three years, to Hong Kong residents aged 65 or above to encourage financial institutions to tap into the immense potential of the 'silver market' by introducing a larger spectrum of appropriate products.

Financial Technologies

A Steering Group on Financial Technologies (fintech), formed in 2015 to examine the challenges. and opportunities of applying technology in the financial sector, completed its mission and released its report in February 2016. The group proposed how Hong Kong could develop further as a fintech hub. The government, together with financial regulators and stakeholders, has made good progress on implementing various measures to support the fintech sector.

On the regulatory front, financial regulators set up fintech liaison platforms to enhance communication with the industry. The HKMA also established a Fintech Supervisory Sandbox in September, allowing banks to test new technologies and applications on a pilot basis.

Cyberport started an incubation programme to provide support for 150 fintech start-ups over the next five years. It launched a fintech co-working space, Smart-Space FinTech, in December to further develop an innovative cluster for fintech start-ups.

InvestHK formed a fintech team in September to attract fintech enterprises, investors and research and development institutions to establish a presence in Hong Kong. It organised an inaugural Fintech Week in November to showcase Hong Kong's fintech advantages.

In December, the Cyber Resilience Assessment Framework, Professional Development Programme and Cyber Intelligence Sharing Platform were implemented under the HKMA's Cybersecurity Fortification Initiative. These projects enhance protection for e-banking consumers and strengthen Hong Kong's expertise in cybersecurity.

During the same month, the HKMA and Britain's Financial Conduct Authority entered into a cooperation agreement on fintech. Both sides will work closely on initiatives such as referrals of fintech firms, joint innovation projects, information exchange and experience sharing.

Talent Training

In August, the government launched a three-year Pilot Programme to Enhance Talent Training for the Insurance Sector and the Asset and Wealth Management Sector. Initiatives were rolled out in phases, including enhanced public education, summer internships for undergraduates,

65