Financial Leaders Share Insights on New Global Landscape at Asian Financial

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January 20, 2010 - More than 60 of the world’s leading business, finance and regulatory players, as well as government officials, shared their insights on the new financial landscape at the two-day Asian Financial Forum in Hong Kong.

The annual event, the third since September 2007, was co-organized by the Hong Kong Special Administrative Region government and the Hong Kong Trade Development Council.

Delivering his opening address, Hong Kong Chief Executive Donald Tsang said the international community expected Asia to rise to the challenge and play a more prominent role in the changing economic landscape amid the improved situation after the economic crisis.

“Governments around the world, including here in Asia, have spent vast sums of money in shielding their economies from the worst of the global financial crisis,” Mr. Tsang said. “Now is the time for governments to start coordinating exit strategies from these stimulus measures. A lack of coordination may lead to imbalances and financial instability that could hurt our region.”

Mr. Tsang stressed that Asian economies, individually and collectively, stood to benefit from greater cooperation in managing risks, reinforcing systemic resilience, enhancing productivity and ensuring financial stability.

He said Hong Kong’s fundamental strengths, coupled with its stable and vibrant economy, had helped enhance the city’s role in three important areas: as a global financial center in the Asian time zone, as a regional asset management center and as an offshore center for Renminbi business.

Mr. Tsang noted that Hong Kong had become a vital testing ground for the liberalization of the Mainland of China’s capital account and the regionalization and internationalization of the Renminbi. He highlighted the significant development of Renminbi business in Hong Kong last year, including the Renminbi trade settlement pilot initiative, the issuance of Renminbi bonds in Hong Kong by Hong Kong banks on the Mainland, and the issuance of the first Renminbi sovereign bonds in Hong Kong.

Mr. Tsang vowed that Hong Kong would continue to strengthen its role as the testing ground for the liberalization of the Mainland currency.

Mr. Tsang also noted the importance of financial integration with the Mainland of China. He said that through closer financial cooperation, Hong Kong aimed to play an exemplary role in promoting intra-Asia financial collaboration and integration.

At this year’s forum, speakers from overseas included the Managing Director of International Monetary Fund, Dr. Dominique Strauss-Kahn; the Managing Director of Goldman Sachs and former President of the Federal Reserve Bank of New York, Dr. E Gerald Corrigan; the Chairman of Morgan Stanley Asia, Dr. Stephen Roach; and Professor of Economics of the NYU’s Stern School of Business and Co-founder and Chairman of Roubini Global Economics LLC, Professor Nouriel Roubini. Speakers from the Mainland include the Chairman of the China Banking Regulatory Commission, Professor Liu Mingkang; the Executive Vice-Chairman of China Centre for International Economic Exchanges, Mr. Wang Chunzheng; the Governor of the People's Government of Guangdong Province, Mr. Huang Huahua; the Chairman and Chief Executive Officer of the China Investment Corporation, Mr. Lou Jiwei; and the Vice-Mayor of Shanghai, Mr. Tu Guangshao.

The following is a speech by Chief Executive Donald Tsang at the opening of the Asian Financial Forum: http://www.info.gov.hk/gia/general/201001/20/P201001200093.htm

Asian Financial Forum: http://www.asianfinancialforum.com/eng/index.htm