Hong Kong is now the seventh largest stock market, in terms of market capitalisation, in the world.
And, to strengthen that position, it is important for the territory to develop and market new financial products and facilities, says Alvin W.K. Li of the office of the Commissioner for Census and Statistics.
The commissioner's office is one of the organisers of the International Statistical Institute Cutting Edge Conference on Stock Market Indexes and Index Derivatives Trading.
The Stock Market of Hong Kong has come a long way since the world equities market crash of October 19, 1987.
'There is a regulatory framework within which securities and futures trading can be conducted in a fair and orderly fashion,' Mr Li said. 'There has been many major reforms to rectify inadequacies in the system.
'The Stock Exchange of Hong Kong and the Hong Kong Futures Exchange act as the frontline regulators of their respective markets and members.
'The Securities and Futures Commission oversees the operation of the stock and futures market and tries to ensure that a balance is attained between the need to regulate the markets, with a reasonable level of investor protection, and the need to allow the markets to grow and develop.' Mr Li said the value of a stock was related to the measure of risk involved. This was defined as the variability of its return.