| Last updated at: (Beijing Time) Monday, November 19, 2001 |
HK Plays Key Role in Mainland's Financial Development: Official |
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The Hong Kong Special Administrative Region plays a pre-eminent role in the mainland's strategy for financial development, said Hong Kong's Financial Secretary Antony Leung Monday in Hong Kong.
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The Hong Kong Special Administrative Region plays a pre-eminent role in the mainland's strategy for financial development, said Hong Kong's Financial Secretary Antony Leung Monday in Hong Kong.
Addressing a forum on China's securities market development, Leung said Hong Kong is the main external arranger for the mainland's loan syndication, bond issues and stock listings.
Over the past 11 years, the amount of total syndicated loans arranged in Hong Kong amounted to 21 billion U.S. dollars, representing 45 percent of total syndicated loans arranged for mainland enterprises, Leung said.
Hong Kong has been the favored location for listing and regional distribution of the mainland's global sovereign and non- sovereign bond issues. Mainland enterprises have also raised 15.3 billion U.S. dollars through listing of 54 H shares here since 1993, he said.
Playing a key role in intermediating capital into and out of the mainland, Hong Kong is the Mainland's largest investor accounting for about half, or 171 billion U.S. dollars, of all realized direct investment in the mainland.
The mainland also accounted for 104 billion U.S. dollars or roughly 26 percent of total inward investment into Hong Kong as of end 1999, Leung said.
With China's entry into the WTO and its opening of the financial markets, Hong Kong's role as an intermediator will be strengthened and its links with the mainland will grow, Leung said.
China is not only a potential issuer of debt instruments, but also a huge pool of potential funds. It has a sizable economy at over one trillion U.S. dollars, which continues to expand at a stable and strong growth rate of 7 percent.
"It is obvious that there are lots of business opportunities and these have special implications for Hong Kong, given our unique role in the region," noted Leung.
With its advanced financial infrastructure, efficient debt market clearing and custodian system, high-quality financial professionals and freest economy, Hong Kong can be an important base for raising funds related to mainland activities, said Leung.
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