Hong Kong Chief Executive Urges Reform of
Global Financial Architecture to Remain Top Priority

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November 13, 2009 - Hong Kong Chief Executive, Mr. Donald Tsang, said today that reform of the global financial architecture should remain a top priority on the action agenda of the international community in the wake of the global financial turmoil.

“The process of recovery and repair worldwide is still incomplete. Economies must sustain the necessary policy response for a balanced, inclusive and sustainable growth, and draw up exit strategies in a coordinated manner,” Mr. Tsang told the business sector of Member Economies at the Asia Pacific Economic Cooperation CEO Summit 2009 in Singapore.

“Hong Kong will maintain steadfast support for international and global fora to improve global economic governance and financial regulatory reform, and will actively participate in their activities,” the Chief Executive said.

Mr. Tsang said that as an active member of the Financial Stability Board, Hong Kong would take concrete action to translate high-level principles agreed at the Board into practical guidelines for implementation.

“We are closely following international discussions on the regulation of hedge funds and credit rating agencies. We also support measures conducive to active due diligence and risk monitoring, and to reducing the risk of financial instability,” Mr. Tsang said.

He added that in upgrading the financial regulatory system in Hong Kong, a reasonable balance would be struck between market development and investor protection.

The Chief Executive started the day in Singapore with a busy schedule. He first met the U.S. Secretary of Commerce, Mr. Gary Locke to exchange views on economic and trade issues of mutual interest. This was followed by a meeting with the Prime Minister of New Zealand, Mr. John Key. After the meeting, Mr. Key and Mr. Tsang jointly announced the conclusion of negotiations of the Hong Kong and New Zealand Closer Economic Partnership Agreement.