In the coming year, the Government will continue to adopt a multi-pronged approach to provide an environment conducive to the development of the bond market, the Secretary for Financial Services & the Treasury says.

In an article on our major tasks during the Year of the Monkey, Frederick Ma pledged to continue to reinforce Hong Kong's position as an international finance centre.

Besides implementing the programme of securitising revenues from five toll tunnels and one toll bridge, he said the Financial Secretary is actively considering the issue of Government bonds.

"The issue of bonds by the Government would have the positive effect of deepening the bond market," he said.

Also, the Government will enhance investor education "not for the purpose of playing the role of an investment adviser, but to promote the development of the market and enhance people's understanding of bonds".

Mr Ma attached great importance of the bond market to our long-term economic development and to Hong Kong as an international financial centre, noting that the growth of the bond market has lagged far behind that of the stock market and the banking industry over the past few decades.

"The bond market can serve as an additional capital raising channel for companies, especially those undertaking longer-term projects. As for investors, the bond market offers them another investment option."

Hong Kong will further develop as an international asset management centre, and it is already a major fund management centre in Asia.

According to a survey, Hong Kong managed 5% of internationally invested private wealth in 2000, ranking first in the region. With rapid economic growth in Asia, particularly the Mainland, the development potential in this area is enormous.

Hong Kong has tremendous strengths in asset management, including a high concentration of fund management companies, a pool of talented people, the absence of foreign exchange control, the rule of law, good corporate governance and a simple and low tax regime.

Mr Ma said the Financial Services & the Treasury Bureau will, through the Advisory Committee on Human Resources Development in the Financial Services Sector, encourage the industry and tertiary institutions to upgrade the training of local talent with a view to enhancing our competitiveness in this area.

The Government, together with other institutions like HK Exchanges & Clearing, will continue to facilitate and promote Hong Kong's development as the premier international capital formation centre for Mainland enterprises, such as by giving strong support to and actively participating in the HKEx's promotion activities.

The bureau will also upgrade corporate governance and tighten the regulation of intermediaries to attract more investors to Hong Kong.

The market generally expects that the number of companies (including Mainland enterprises) to list in Hong Kong in the Year of the Monkey will exceed that of the Year of the Ram, Mr Ma said.