Monetary Authority Chief Executive Joseph Yam says the financial systems of Hong Kong and the Mainland should work together for the benefit of the country.

In his latest Viewpoint article published on the authority's website today, he said Hong Kong has been named the freest economy in the world while the Mainland economy is moving towards greater dependence on the market.

"The obvious dilemma that efficient markets and bureaucrats do not co-exist well is not easily resolved. It takes a lot of political skill and courage to promote the sentiment of leaving things to the market and trusting it to do a better job. But we are seeing impressive progress, although from a free-market perspective the pace of liberalisation is never quite fast enough. "

Mr Yam said the public interest should lie in the efficiency of financial intermediation and the stability of the financial system of the whole country.