joseph yam : east asian financial markets - the next frontier welcoming remarks by mr joseph yam, chief executive of the hong kong monetary authority, at the conference on " east asian financial markets - the next frontier ", hong kong, 22 june 2006. * * * ladies and gentlemen, it is a great pleasure for me to welcome you to this conference on " east asian financial markets - the next frontier ". it is also an honour for the hong kong monetary authority to be co - hosting this event with the world bank to discuss the findings of its latest regional financial sector flagship study and the future development of the financial markets in asia. the world bank has been very supportive of economic development in the region and i particularly welcome the focus in its recent work on financial markets. here in asia, considerable efforts have been made at the individual economy and regional levels to further develop our financial markets. much remains to be done, however, so it is with great anticipation that i look forward to the discussions, conclusions, and recommendations that will emerge during the coming two days. the title of the conference, " east asian financial markets - the next frontier " is, i believe, very fitting. each part of it carries an important message. the focus on financial markets reminds us that a wellfunctioning financial system is increasingly important for economic development. this is not only the case for economies like ours here in hong kong where financial services constitute a substantial proportion of gdp, but equally for economies that rely on other sectors, be they manufacturing, mining, or agriculture, for the bulk of economic activity. there are many reasons for this. first, a well - functioning financial system helps allocate capital to the most productive individuals, firms, and sectors through the process of intermediation between households that engage in savings and entrepreneurs who require funds to carry out investment projects. second, broad financial markets permit risk sharing and diversification, thereby reducing the exposure of investors to idiosyncratic risks. third, structured financial products allow the transfer of risk to entities that are most capable of bearing it. this makes it possible for economic agents to offload risks that they are not well equipped to deal with and specialize in activities which constitute their comparative advantage. last but not least, a financial system makes it possible to shift purchasing power across time as individuals build up financial assets while they are working to sustain a comfortable living standard in retirement. considerable progress has been made by many regional economies in revamping and strengthening the

norman t l chan : removal of rmb conversion limit for hong kong residents speech by mr norman t l chan, chief executive of the hong kong monetary authority, hong kong, 12 november 2014. * * * i am glad to announce that the rmb conversion limit for hong kong residents of rmb20, 000 per day will no longer be applicable with effect from 17 november 2014. under the new arrangement, banks will square their positions arising from rmb conversions conducted with hong kong residents in the offshore market instead of the onshore market. as a result, the prevailing conversion and other relevant restrictions for onshore conversion will hence be no longer applicable. the hkma has just issued a circular to banks setting out the detailed arrangements. the hkma has had many rounds of discussions with the banking industry and mainland authorities on relaxing the restrictions on rmb currency conversions by hong kong residents. we consider that the best option is for rmb conversions by hong kong residents to be done in the offshore market instead of the onshore market. with the size of the offshore rmb liquidity pool in hong kong exceeding rmb 1 trillion, and considering the scale and depth of the rmb foreign exchange market, we do not foresee any problem for banks to square their positions for hong kong residents ’ rmb conversions in the offshore market. i believe that after the removal of the conversion limit, it will become more convenient for hong kong residents to participate in shanghai - hong kong stock connect and other rmb financial transactions. in addition, following the principle that offshore rmb businesses should be conducted according to the rules and practices in the offshore market, the prevailing restrictions on rmb cashnote conversions and banks ’ rmb lending to hong kong residents will no longer be applicable. this will facilitate the launch of rmb investment products by financial institutions in hong kong, and raise the position of hong kong as an offshore rmb business centre to new heights. bis central bankers ’ speeches