Center

China needs HK as global financial hub: HK lawmaker

(Xinhua)
Updated: 2007-01-16 09:09

"There is a great urgency for China to develop an international financial center of global significance within its own borders," said David Li, a lawmaker of the Legislative Council of theHong KongSpecial Administrative Region (HKSAR), in Hong Kong on Monday.

Li was speaking as convenor of a focus group on financial services, one of four groups the HKSAR Chief Executive established at an economic summit on "China's11th Five-Year Programand the Development of Hong Kong" last September.

In its report to the Chief Executive Monday, the financial services focus group had six proposals and 80 specific recommendations. Chief among them was the need for Hong Kong to develop further as China's international financial center of global significance.

"We believe that Hong Kong has the infrastructure, the transparent legal and regulatory environment, and the market depth to contribute in these areas for the benefit of the entire Mainland economy," he said.

He stressed the window of opportunity will not last forever. " If we do not act now, inertia will set in, and the business will gravitate to established financial centers overseas."

The report offered a five-pronged strategy to pursue the nation's economic development and financial reform in a more significant manner.

It includes enhancing the presence of Hong Kong financial intermediaries in the Mainland to provide financial services on location, and enhancing the outward mobility of Mainland investors,fund raisers and financial intermediaries.

It also includes allowing financial instruments issued in Hong Kong to be marketed in the Mainland, enhancing the capability of Hong Kong's financial system in handling financial transactions denominated inrenminbi, and strengthening financial infrastructure linkages between the Mainland and Hong Kong.