Hong Kong Chief Executive Donald Tsang delivers opening remarks at the Asian Financial Forum on January 20 at the Hong Kong Convention and Exhibition Centre.

The forum, the third since September 2007, attracted more than 1,500 people from all over the world. 

Carrying the theme “Asia in the New Economic Order,” the event was co-organized by the Hong Kong Special Administrative Region Government and the Hong Kong Trade Development Council.

In his opening address, Hong Kong Chief Executive Donald Tsang said the international community expects Asia to rise to the challenge and play a more prominent role in the changing economic landscape.

“Governments around the world, including here in Asia, have spent vast sums of money in shielding their economies from the worst of the global financial crisis,” Mr. Tsang said.

“Now is the time for governments to start coordinating exit strategies from these stimulus measures. A lack of coordination may lead to imbalances and financial instability that could hurt our region.”

Hong Kong Financial Secretary John C. Tsang attends the forum’s cocktail reception on January 20.

He stressed that Asian economies, individually and collectively, stand to benefit from greater cooperation in managing risks, reinforcing systemic resilience, enhancing productivity and ensuring financial stability. 

Mr. Tsang said Hong Kong’s fundamental strengths, coupled with its stable and vibrant economy, has helped enhance the city's role in three important areas: as a global financial center, as a regional asset-management center and as an offshore center for renminbi business.

“We have become a vital testing ground for the liberalization of our nation’s capital account and the regionalization and internationalization of the Mainland currency, the renminbi,” Mr Tsang said, referring to the significant development of renminbi business in Hong Kong in 2009, including the renminbi trade settlement pilot program, the issuance of renminbi bonds in Hong Kong by Hong Kong banks on the Mainland, and the issuance of the first renminbi sovereign bonds in Hong Kong.

“We will continue to strengthen Hong Kong’s role as the testing ground for the liberalization of the Mainland currency,” he said. “This includes developing other renminbi business, such as renminbi financing and promoting direct investment in Hong Kong.” 

Mr. Tsang also noted the importance of financial integration with the Mainland. He said that through closer financial cooperation, Hong Kong aims to play an exemplary role in promoting intra-Asia financial collaboration and integration.

“In particular, we have the experience, expertise and the motivation to better connect our nation with partners in the region and around the world.”

The January 20 session of the forum comprised a plenary session on “The Global Post-Crisis Financial Landscape” and “Asia’s Role in the New Economic Order,” a policy dialogue on “Responding to the Financial Crisis - Financial Reform Impacts and Regulatory Regime Changes,” a keynote luncheon by Guangdong Province Gov. Huang Huahua, panel discussions on global investment opportunities and China-focused topics, and a cocktail reception.

Hong Kong Secretary for Financial Services and the Treasury K.C. Chan speaks at the policy dialogue session on January 20.

Speaking at the reception, Hong Kong Financial Secretary John C. Tsang said the global economic turmoil has brought into sharp focus how regional economies are more interconnected as well as more interdependent.

“Through closer integration within Asia, we can build on the collective strength including our diversity, our dynamism, our deep pool of talent and our competitive spirit to spearhead the new economic order,” the Financial Secretary said.

Hong Kong Secretary for Financial Services and the Treasury K.C. Chan expressed his gratitude for the full support of all participants, without which the forum would not have been so successful. 

“Today’s forum gives us the opportunity to discuss the best way forward now that the global economy is getting back on track,” Professor Chan said. “I trust the valuable exchanges of views and experiences by speakers can pave the way for closer cooperation to overcome future challenges.”

Overseas speakers included International Monetary Fund Managing Director Dominique Strauss-Kahn; Goldman Sachs Managing Director and former President of the Federal Reserve Bank of New York E. Gerald Corrigan; Morgan Stanley Asia Chairman Stephen Roach; and Nouriel Roubini, professor of economics at New York University’s Stern School of Business and co-founder and chairman of Roubini Global Economics LLC.

Mainland speakers included China Banking Regulatory Commission Chairman Liu Mingkang, China Centre for International Economic Exchanges Executive Vice Chairman Wang Chunzheng, Gov. Huang, China Investment Corp. Chairman and Chief Executive Officer  Lou Jiwei and Shanghai Vice Mayor Tu Guangshao.

The January 21 session of the forum featured a breakfast meeting on “Striking a Balance between Financial Innovation and Regulation,” panel discussions on “Environment and Natural Resources” and “Infrastructure-related Issues,” a keynote luncheon by Dr. Roubini and concurrent workshops.