ENG-2019 — Page 95

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Financial and Monetary Affairs

Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road (B&R) Initiative to further enhance its position as a major platform of capital raising and financing for Mainland and overseas enterprises as well as a global hub for offshore Renminbi (RMB) business.

Financial Services

The financial services industry is an important pillar of the Hong Kong economy, contributing to nearly a fifth of Gross Domestic Product and providing over 260,000 jobs, which account for nearly 7 per cent of the working population. Hong Kong is constantly striving to consolidate its strengths and develop the financial markets whilst ensuring its regulatory framework can keep pace with the times, manage systemic risks effectively and provide protection for investors.

Financial Regulators

Hong Kong Monetary Authority

The Hong Kong Monetary Authority (HKMA) maintains currency stability within the framework of the Linked Exchange Rate System; promotes stability and integrity of the financial system, including the banking system; helps maintain Hong Kong's status as an international financial centre, including the maintenance and development of Hong Kong's financial infrastructure; and manages the Exchange Fund.

The HKMA is an integral part of the government, but operates with a high degree of autonomy complemented by a high degree of accountability and transparency. It is accountable to the Financial Secretary, who is advised by the Exchange Fund Advisory Committee (EFAC) in exercising control of the Exchange Fund.

The Banking Advisory Committee and Deposit-taking Companies Advisory Committee are established under the Banking Ordinance to advise on matters relating to the banking industry. Both committees are chaired by the Financial Secretary and comprise members from the banking and other professions.

Securities and Futures Commission

As the statutory regulator of Hong Kong's securities and futures markets, the Securities and Futures Commission (SFC) derives its powers from the Securities and Futures Ordinance (SFO). Its regulatory work is categorised into five areas: intermediaries, investment products, listings. and takeovers, market infrastructure, and enforcement.

Intermediaries - The SFC sets standards for industry practitioners seeking to be, and to remain, licensed. It supervises licensed corporations, including stock brokers, futures and leveraged foreign exchange (forex) dealers, fund managers, investment and corporate finance advisers, and credit rating agencies, to ensure their financial soundness and compliance with conduct requirements.

Investment products The SFC maintains a robust regulatory regime and performs gatekeeping functions in authorising investment products offered to the Hong Kong public under the SFO, and monitors compliance with disclosure and other requirements. It formulates

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