Norman Chan reappointed as Hong Kong Monetary Authority chief

Hong Kong's de facto central banker, Norman Chan Tak-lam, has been reappointed with an 8 per cent pay rise, in a move seen by bankers as a bid to sustain the city's financial stability.

Chan, 59, would serve a second five-year term as Monetary Authority chief executive after his current term ends in September, the government said yesterday.

His predecessor, Joseph Yam Chi-kwong, was in office for 16 years, making way for Chan in October 2009.

Financial Secretary John Tsang Chun-wah said he had "every confidence" Chan would be able to continue helping him develop the city as the world's largest offshore yuan centre.

Wilson Chan Fung-cheung, senior consultant to the Institute of Bankers, said Chan would help the banking sector further develop relationships with overseas markets and cash in on yuan reforms. "[Chan] has a good understanding of the mainland and many connections with industry, and both areas give him an edge."

The reappointment would bring continuity in a time of uncertainty, HSBC Asia-Pacific chief executive Peter Wong Tung-shun said. "We believe [Chan's] extensive experience in regulatory policy will help Hong Kong face the challenges of the next five years," Wong added.