Regional integration: Chief Executive Donald Tsang speaks at a luncheon at the Boao Forum for Asia's Annual Conference 2006 in Hainan.

Regional financial integration will bring greater efficiency in fiscal intermediation, greater stability and greater sustainability of economic prosperity, Chief Executive Donald Tsang says.

Addressing a luncheon at the Boao Forum for Asia's Annual Conference 2006 in Hainan today, Mr Tsang said there are many other aspects of growing economic partnership associated with trade integration in this region. By contrast, the pace of financial integration seems to be lagging seriously behind, he added.

"Whether greater regional financial integration will ultimately lead to a common Asian currency is, perhaps, a question that many of us will not be able to answer in our lifetimes. But at least the subject is now attracting discussion in wider circles, which is encouraging."

In driving Asia's growth to the next level, participants should focus on the quality of growth and aim to make it more balanced, stable and sustainable, he said. When Asian finance is better organised, participants will collectively be less vulnerable to sharp and costly disruptions to economic progress.

"With enhanced efficiency in financial intermediation and greater financial stability, growth will become more sustainable - and the people we serve will feel more confident about spending more and saving less, thus achieving more balanced growth. Perhaps all this will also contribute to reducing or eliminating the global imbalance."