HKMA outlines financial strategy

THE Hong Kong Monetary Authority has outlined a series of initiatives to consolidate the territory's status as a regional financial power.

Chief executive Joseph Yam yesterday highlighted several main threats to the territory's position, most notably from Singapore, and provided some suggestions on the way forward.

Mr Yam appealed to the Government to introduce tax incentives 'to even the playing field' with the Lion City, while calling for measures to assuage investors' apprehension that Hong Kong's economy will be eroded, especially after 1997.

Investors need reassurance, he said, that areas such as currency stability and the legal system will remain unchanged after the handover to Chinese rule.