• Sun
  • Jul 27, 2014
  • Updated: 12:05am

HKMA

The Hong Kong Monetary Authority oversees Hong Kong’s monetary system. It was founded in 1993 when the Office of the Exchange Fund merged with the Office of the Commissioner of Banking. Its responsibilities include maintaining currency stability, monitoring Hong Kong’s banking system and managing the Exchange Fund.  

BusinessEconomy

HKMA chief warns against complacency over Shanghai trade zone

PUBLISHED : Friday, 06 September, 2013, 1:48pm
UPDATED : Friday, 06 September, 2013, 7:22pm

Hong Kong Monetary Authority chief warned on Friday that the city must not “sit on its laurels” if it wants to remain a global financial centre after plans for China’s first free trade zone were revealed.

Draft proposals for the free trade zone (FTZ) in Shanghai showed that the zone goes beyond greater liberalisation of trade to take in investment and financial services -- including free currency convertibility.

“It is no good for Hong Kong to sit on its laurels and just hope or pray that other financial centres do not or cannot catch up,” Hong Kong Monetary Authority chief executive Norman Chan told a financial summit in the city.

“There is no room for complacency,” he added.

When asked if he feared Shanghai could surpass Hong Kong as a financial hub, Chan defended its powerhouse status.

“Hong Kong is already a world-class financial centre and has a leading edge in the offshore renminbi (yuan) business,” he said.

“It is important that we continue to upgrade our platform in facilitating renminbi businesses and we will be able to maintain a competitive edge over time.”

As pro-democracy campaigners in Hong Kong push for universal suffrage by 2017 and anti-Beijing sentiment increases, Chan said the city’s economy was “well positioned” to withstand political tensions.

“We have taken sufficient measures to enhance the risk management of the banking system, our banks are well positioned and well prepared to withstand future shocks, from whatever source,” he said.

Chan underlined the crucial importance of financial market infrastructure to a city’s economic success.

The draft free trade zone plan for Shanghai, revealed on Thursday, said the new zone would support the establishment of foreign and joint venture banks and welcome privately funded financial institutions.

At present, China’s banking sector is overwhelmingly dominated by state-run institutions.

 

Share

Related topics

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

2

This article is now closed to comments

caractacus
There is only one way for Hong Kong's economy to move foward: better governance that responds to the needs of the people instead of pandering to special interests who have a stranglehold on our economy and look after only themselves while **** everyone else. Break the property, land and associated banking cartels and shift the emphasis to economic activity which produces real value and benefits for everyone, not just a parcel of corrupt cronies and parasitic tycoons.
 
 
 
 
 

Login

SCMP.com Account

or