Monetary monitoring: Secretary for Financial Services and the Treasury Frederick Ma  said to maintain Hong Kong as an international monetary centre, it is important to safeguard investors' confidence through an independent judicial system.

To strengthen the monitoring of listed companies, the Government will propose to the Legislative Council the setting up of a statutory body comprising an independent investigation board and a financial reporting review panel early next year, Secretary for Financial Services & the Treasury Frederick Ma says.

Speaking on the RTHK programme "Talking to the Secretaries" this morning, Mr Ma said to maintain Hong Kong as an international financial centre, it is most important to safeguard investors' confidence through an independent judicial system and an effective regulatory regime.

He stressed the proposed statutory set-up will raise listed companies' transparency, credibility and accountability, and ensure quality of their financial reports. 

Independent experts to be asked to review financials

Mr Ma said the proposed independent investigation board, to be financed jointly by the Companies Registry, Securities & Futures Commission, Hong Kong Exchanges & Clearing Ltd and the Hong Kong Institute of Certified Public Accountants, will monitor the professional ethics of the auditing profession.

As regards the financial reporting review panel, he said it will be formed by independents outside the profession and tasked with examining listed companies' financial reports to ensure their compliance with relevant standards.

To raise the quality of IPO sponsors, Mr Ma said starting next year, the Securities & Futures Commission will conduct site inspections to ensure companies undergo all the required procedures.

He added amendments to the Companies Ordinance will be considered so as to raise companies' good governance.

Commenting on the current financial year, Mr Ma said above-the-target revenues have been recorded in stamp duties, first registration of motor vehicles, salaries tax and profits tax.

He said he is confident the budget deficit will be less than $42.6 billion though income from lottery tax may be less than expected.

On the recent announcement by the People's Bank of China of provisional measures for managing the transfer, sales and payment of foreign exchange relating to personal assets, he said Hong Kong, being an international asset-management center, will benefit from the move.