HONG Kong is on the right track to become Asia's centre for the issue of regionally and locally denominated debt, according to Morgan Stanley. Thierry Porte, managing director of Morgan Stanley Japan, said: ''We have seen some of the statements made by the stock exchange and spoken to some of the regulators and they are making themselves very receptive to this type of issue developing in Hong Kong.'' This year, Morgan Stanley has dominated the issue of foreign currency denominated debt - more specifically US dollar corporate debt. The US investment bank has issued US$2.5 billion in Asian-issued debt so far this year, compared with $500 million in 1992. Mr Porte said: ''Obviously, we see there is a potential for more. That is why we are here. ''We are also interested in the Hong Kong dollar market, but for now we are looking at market conditions and how the participants work.'' As the debt market grows, Mr Porte says the need for an Asian clearer will emerge, in order to satisfy clients' needs and generate liquidity.