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Much of Asian savings, in particular official sector savings and private sector savings that have been institutionalized, are still invested in assets of OECD countries, although the trend has been a gradually falling one. I cannot speak for other economies, but insofar as Hong Kong is concerned, in excess of 95% of our $ billion of foreign reserves are invested outside Asia. Specifically, in the management of our foreign reserves, we work against a preferred neutral position of about 75% in US dollar assets, mostly in US Treasury securities. I understand also that more than 80% of total Asian foreign exchange reserves amounting to $ billion are invested largely in North America and Europe. At the same time, there has been much foreign direct investment and foreign portfolio investment from OECD countries in Asia. It can be argued therefore that Asia is financing much of the budget deficits of developed economies, particularly the United States, but has to try hard to attract money back into the region through foreign investments. And the volatility of foreign portfolio investments has been a major cause of disruptions to the monetary and financial systems of the Asian economies. Some have even gone as far as to say that the Asian economies are providing the funding to hedge funds in non-Asian centres to play havoc with their currencies and financial markets. 35. This comment is perhaps a little unkind, given the important role that is being played by the international financial community in the globalized financial environment.