The Secretary for Financial Services & the Treasury says the Government will continue its multi-pronged approach to developing the bond market, which is showing signs of success. At the end of  September, outstanding Hong Kong dollar bonds, including the Hong Kong Monetary Authority-issued Exchange Fund Bills, amounted to $556 billion.

Speaking in reply to a question from Ambrose Lau in the Legislative Council today, Frederick Ma said investors' response to bonds issued last year - including retail bonds, with maturities ranging from seven to 15 years from the Airport Authority, the MTRC and the KCRS - has been good.

"These bonds provide benchmark yield curves for the reference of the market and offer additional choices for investors," Mr Ma said.

SFC to conduct comprehensive review of laws

Among other things, the Government will encourage the public sector to issue bonds, in particular retail bonds. It will also promote bond-investment education, and exchange views with the financial-services industry on how to stimulate the development of the market.

The Securities & Futures Commission will conduct a comprehensive review of all local laws and procedures governing public offers of securities with reference to regulatory reforms introduced in other leading international financial centres, with a view to putting in place a framework that provides the most efficient, competitive and fair environment for issuers and investors alike.

The commission has begun its review and aims to put forward proposals for public consultation by September 2004, Mr Ma added.