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Hong Kong To Boost Its Regulatory Regime

Friday, October 14, 2011

In his 2011-12 Policy Address, Chief Executive Donald Tsang disclosed that, by enhancing its regulatory regime, the government hopes to attract more companies to Hong Kong from Europe, the United States and emerging markets and, thereby, broaden listings on the Hong Kong Stock Exchange.

Tsang said the move includes enacting legislation this year to oblige listed corporations to disclose price-sensitive information. The government will also broaden and deepen its bond market, and seek to finish updating the Companies Ordinance.

In addition, it will take forward the establishment of an independent Insurance Authority and enhance the regulatory regime for insurance intermediaries. "We will also prepare proposals for the establishment of a policyholders’ protection fund, which will form the basis of the relevant legislation," he added.

Tsang also indicated that the government will actively negotiate closer economic and trade arrangements with Hong Kong’s trading partners, so as to expand market and business opportunities for our enterprises engaged in the trading of goods and services. Apart from exploring the possibility of a free trade agreement with Chile, it will soon negotiate with Russia an agreement on investment promotion and protection.

The government is also actively exploring the possibility of joining the trade and economic co-operation arrangements among East Asian economies, and strengthening links with stock markets in the 'BRICS', the leading emerging market countries of Brazil, Russia, India, China and South Africa.

He said that a further supplement to the Closer Economic Partnership Arrangement with China will be signed by the end of this year. The Chinese government has clearly indicated, he concluded, that the markets for Hong Kong's trade in services will be further opened up, and has set a target to basically achieve full liberalization of trade in services for Hong Kong by the end of the 12th Five-Year Plan in 2015.