already have a thriving ecosystem for finance and technology businesses here. this has been bolstered by the hkma ’ s smart banking initiatives, which have catalysed digitalisation in the banking sector, driving faster and more efficient services for customers. i ’ m sure many of you are finding banking and payments much more convenient than before. 22. we will continue to work with the banking industry to apply technology to enhancing finance for customers in hong kong. we will explore greater use of artificial intelligence and data analytics in banking operations. we will also explore improvements to hong kong ’ s data infrastructure so that bank customers, particularly small businesses, can make better use of their own digital footprint to enhance their access to finance. and we will adopt the latest technologies for cross - border applications, such as international payments and trade finance. our vision for hong kong to become a leading global fintech hub will create a wealth of opportunities for local and international players. 23. the third trend driving opportunity is green finance. hong kong is already at the forefront of promoting the role of finance in driving the transition to a more sustainable economy. our government is one of the few government issuers with a dedicated green bond programme. we have a robust green finance ecosystem that draws on experts from around the world. as a banking supervisor, the hkma is pushing forward a green banking framework. we are also working with other regulators on a local taxonomy for defining green projects. and we are seeking to prioritise investments that align with environmental, social and governance principles as we deploy the reserves entrusted to us in the exchange fund. 24. our work in developing green finance is relevant beyond hong kong. going back to our role as a gateway for investment to the mainland, hong kong ’ s embrace of green finance will also promote foreign participation in the mainland ’ s sustainable capital markets, which are among the world ’ s largest. 25. when speaking of opportunities, i should also mention the all - important element of human capital. our people have always been our greatest resource. we need to maintain a highlymotivated, highly - skilled workforce to uphold the standards that give hong kong its competitive edge. through the hkma ’ s ‘ capacity building for future banking ’ initiative, we have worked with the banking sector to create a long - term plan for delivering the advanced skills our industry requires. this investment in people creates opportunities for our workforce to advance and prosper within the fast - evolving banking landscape. 26. as with our efforts to ensure the

norman t l chan : reform and liberalisation in china – the positioning and future of hong kong speech by mr norman t l chan, chief executive of the hong kong monetary authority, at the hong kong economic summit 2015, hong kong, 1 december 2014. * * * ladies and gentlemen, hong kong ’ s success story – borrowed time and borrowed place? 1. i am glad to be invited to address the economic summit 2015. this year ’ s theme is “ connectivity breeds opportunities ” and “ breaking new grounds for economic and trade development ”. i would like to share with you my views on hong kong ’ s positioning and prospect amidst the reform and opening up of mainland china. i always believe that hong kong will be all the more prosperous as mainland china continues to deepen its reform and open up further to the world. i do not subscribe to the view that our prosperity is built on borrowed time in a borrowed place. 2. there are some who think that time has changed and hong kong ’ s golden years are behind us. with china ’ s rise, hong kong will decline in its relative importance and relevance to the mainland. some also think that the central government will trigger a plan b in favour of other mainland cities to replace hong kong as its international financial centre if hong kong becomes unstable or is no longer reliable for whatever reasons. indeed, there is even a feeling among some that hong kong will inevitably be marginalised no matter what as mainland china ’ s reform and liberalisation gathers pace and other mainland cities bypass hong kong to establish direct trade and financial links with the world. 3. these people believe our future is doomed and would be eclipsed by the mainland ’ s reform and liberalisation. they tend to look back with fond memories of the “ good old days ” in the 1980s and 1990s when hong kong was the sole gateway between mainland china and the rest of the world. so, i pose this question – is their reasoning sound? will hong kong become irrelevant as mainland china opens up? 4. first, let ’ s look at the changes in the role of hong kong as an intermediate trading hub for mainland china over the past few decades. in 1979, mainland china ’ s external trade amounted to a mere us $ 30 billion and container throughput amounted to just 30, 000 to 40, 000 teus, which were mostly processed at the kwai chung container terminal in hong kong. by contrast, in 2013, the mainland ’ s external trade ballooned 140 times to us