Press release

HK best investment platform for the Mainland

Friday, November 26, 2004

Hong Kong's pool of local and overseas financial services talent and a well-developed and liquid financial market has enabled it to provide quality professional advice and services to the Mainland insurance industry on asset management as well as to serve as the best investment platform for the industry.

This was said by the Secretary for Financial Services and the Treasury, Mr Frederick Ma, when he delivered a keynote address at the Forum on Management of Insurance Funds organised by the Financial Services and the Treasury Bureau in Beijing today (November 26).

In his speech entitled "Hong Kong as The Investment Platform for the Mainland", Mr Ma said the forum provided an excellent opportunity for market practitioners in the Hong Kong financial services sector to share their experience and insights on fund management with the Mainland insurance industry.

"As a renowned international financial centre, Hong Kong possesses a superb financial infrastructure, modern financial facilities and a regulatory regime which is in line with international standards," Mr Ma said. "That said, what is even more important is our pool of local and overseas financial services talent who possess ample knowledge, experience and exposure in the international market. Coupled with their rich experience in servicing Mainland enterprises, our professionals are well-qualified to provide professional advice to the Mainland insurance industry on asset management, including risk management and diversification of investment."

Mr Ma told the forum that since Hong Kong and the Mainland possessed many different edges, both economies would become stronger and would achieve a win-win situation through close co-operation.

Vice-chairman of the China Insurance Regulatory Commission, Mr Wu Xiaoping and a representative of the Insurance Association of China, Mr Miao Fu Chun also delivered keynote speeches on "Reform and Development of the Management Structure of Mainland Insurance Funds" and "Outlook of the Development of Managing Insurance Funds" respectively. At the luncheon of the Forum, the Hong Kong Exchanges and Clearing Ltd Chief Executive, Mr Paul Chow, spoke on Hong Kong as an important global investment market in the region.

One of the key discussion topics in today's forum was investment strategies of the insurance sector. A number of experienced professionals from the fund management industry in Hong Kong, including Chairman of the Hong Kong Capital Markets Association, Mr Brian Yiu; Chairman of the Hong Kong Investment Funds Association, Mr Au King-lun; Vice-chairman of the Schroder Investment Management (Hong Kong) Limited, Mr David Lui, and representative of the Hong Kong Federation of Insurers and Chairman of the Pacific Century Insurance Holdings Limited, Mr Francis Yuen, spoke at the forum. They gave a detailed introduction of the Hong Kong bond market, the development of the fund management industry in Hong Kong, the benefits of a diversified international portfolio for insurance funds, and institutional investment strategies of insurers.

During the discussion session, participants focused their discussions on three topics. They were: the Mainland's "Temporary Measures on Overseas Use of Foreign Exchange Insurance Funds" of August 18, 2004, investment products available, investment portfolio construction and supporting services; asset allocation/diversification and the capitalisation on cross-border investment opportunities to match long-term liabilities; and the considerations for Mainland insurance companies in investing insurance funds in the Hong Kong capital markets from the perspectives of insurers.

The Commissioner of Insurance, Mr Richard Yuen, who also took part in the forum, said the forum had provided an excellent opportunity for Mainland and Hong Kong insurance regulatory institutions to share their experiences in regulating the investment of the insurance companies.

Concluding the forum, the Permanent Secretary for Financial Services and the Treasury (Financial Services), Mr Kevin Ho, said the forum had gained wide and tremendous support from the Mainland and Hong Kong, with some 270 participants. The forum had successfully fostered experience sharing on management of insurance funds between Mainland and Hong Kong representatives. It had also helped improve the Mainland insurance sector's understanding of Hong Kong's edges as the international investment for the Mainland.

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