Hong Kong's securities laws need to be reformed quickly due to rising competition with neighbouring markets and the challenge of China's impending entry into the World Trade Organisation, according to the Securities and Futures Commission (SFC).
In a government paper to legislators, the SFC said the laws needed to be reformed soon.
'As Australia and Singapore deregulate, the competition is intensifying,' the paper said.
'Further, with the mainland opening up with its accession to the WTO, Hong Kong can no longer take for granted the business it attracts as the 'gateway' to the mainland.'
Australia and Singapore have reformed their securities markets in recent years, while their stock exchanges have demutualised and become listed companies.
They also plan to consolidate their securities laws under a single set of regulations covering all financial markets.
Next month, Singapore will remove stockbrokers' minimum commission system. Hong Kong will do this in April 2002.