Hong Kong's key to being a competitive and efficient market is close co-operation among the Government, regulators, the exchange, practitioners, professionals and investors, Securities & Futures Commission Chairman Martin Wheatley says.

He hopes that with the market's continuous support, Hong Kong can excel as an international finance centre and premier fund-raising centre for the Mainland.

Meeting the media as chairman for the first time today, Mr Wheatley said the challenge for Hong Kong is to preserve and build on its enviable status as a hub for finance and develop its synergy with the Mainland.

Special status

He said the city has unique characteristics. It comprises most of the world's major investment banks, some sizeable local firms, and a large body of small but dedicated brokers. Hong Kong also enjoys the advantage of proximity to the Mainland and many companies from there have chosen Hong Kong as a fund-raising platform.

"Like any other regulator who has to handle cross-border issues, Hong Kong has to embrace the challenges as well as the opportunities. The past chairman, Andrew Sheng, has built an organisation that is professional, highly transparent and accountable. I have every intention to continue that openness, and build on the relationship with the industry and the media to deliver our objectives fairly, transparently and with proper accountability," he said.

"As we regulate, we will balance the need for investor protection with facilitation of market development. We will continue to educate investors and practitioners. We will enforce the law firmly and fairly. It is against that small fraction of the market who break the rules of the game that the commission will hit hard. Where market integrity and investors' interest are at stake, we will take tough action, without fear or favour."

Warrant market review

Mr Wheatley said there will be conclusions next month on the review of the warrants market. The market will be consulted before changes are introduced.

When asked on investigations into certain market activities, Mr Wheatley said the commission has received some complaints which are being looked into. He called on investors to understand the products, such as warrants, before they buy them.