HK body to boost bank ties

HK body to boost bank ties

HONG KONG (Reuter): Hong Kong's de-facto central bank will
continue building ties with regional central banks and boost the
territory's debt market to maintain competitiveness, Rafael Hui,
secretary for financial services, said yesterday.

"The Hong Kong Monetary Authority (HKMA) is in discussions
with other central banks in the region including Australia and
New Zealand and Indonesia for a linkage of the settlement system
in the context of debt securities," Hui said at a press briefing.

Hui will continue to serve as secretary for financial services
under the new Beijing-backed government after July 1 when China
takes over Hong Kong.

"There are discussions between the HKMA and the People's Bank
of China to establish a settlement system which in future will be
linked and enable real time settlement of foreign exchange
transactions of the Hong Kong dollar and renminbi (yuan) in both
China and Hong Kong," Hui said.

Hong Kong's weak focus on its debt markets would be rectified,
Hui said.

"There are various measures and proposals from the private
sector and various exchanges to increase the liquidity and debt
of our debt both at the primary and secondary level," he noted.

On the equity side, Chinese companies listing in Hong Kong
would still have to follow Hong Kong Stock Exchange (HKSE)
regulations, Hui said.