to mind the debate between the efficient market hypothesis proponents and the advocates of behavioral finance. to believers of efficient markets, the price contains all relevant information to make a decision and market forces will trade away arbitrage opportunities. believers of behavioral finance, on the other hand, look at a trader ’ s psychology and how he values “ prospects ” and “ gambles ” as the drivers of prices. to its supporters, behavioral finance explains market overshooting, over / under - reaction and loss aversion. well, the jury is still in out on this debate … but whether you believe in one school of thought or the other, one thing is clear – to be able to maximize your treasury potential, you need information … correct and timely information. i hope that by having distilled our current market environment into three risks, four lessons and three policy guideposts, i have moved this discussion further to help you optimize your potential. as i close, let me point out that your chosen theme is not limited to parochial bottom - line optimization. your theme calls for “ excellence ”. to me, that is a call for you to be responsible stakeholders. if you are on the sell - side, sufficient disclosure and transparency are central in your dealings. if you are on the buy - side, bounded risk taking is relevant in your investments. as you perform your jobs, i hope you appreciate that you are an invaluable partner of the bsp in transmitting the impact of our policies to the real economy …. i hope also that you bear in mind that as participants in the financial market, you have a responsibility to the broader community that you are in … finally, i trust that you will remember that your reason for being is to finance activities in the real sector. on that note, let me once again thank the organizers of this conference and wish all of you a productive and rewarding afternoon. good day to all! bis central bankers ’ speeches

eddie yue : opening remarks - hong kong academy of finance 5th anniversary and financial leaders programme graduation ceremony opening remarks by mr eddie yue, chief executive of the hong kong monetary authority, at the hong kong academy of finance 5th anniversary and financial leaders programme graduation ceremony, hong kong, 13 december 2024. * * * a very warm welcome to all of you for joining us today to commemorate the 5th anniversary of the hong kong academy of finance ( aof ) and the 3rd financial leaders programme graduation ceremony. back in 2018, with the financial industry becoming increasingly globalised and complex, the financial secretary tasked the hong kong monetary authority ( hkma ) to commission an experts group to consider how to further enhance hong kong's " soft power " as an international financial centre ( ifc ). the experts group concluded that cultivating this " soft power " in practice required a robust talent pool in leadership ranks and a strong local research base to further elevate hong kong's competitiveness and profile as an ifc on the global stage. with this in mind, the aof was established in 2019 as a collaboration among the four financial regulators in hong kong, namely the hkma, the securities and futures commission, the insurance authority, and the mandatory provident fund schemes authority. the mission of the aof was twofold : ( i ) to serve as a centre of excellence for developing financial leadership ; and ( ii ) to act as a repository of knowledge in monetary and financial research, including applied research. three aof fellows – norman [ chan, senior adviser of the hong kong academy of finance ], moses [ cheng, non - official member of the executive council ], and tony [ neoh, co - chairman, the asian academy of international law ] – who played a significant role in conceptualising the idea of the aof, are here with us today, and will share their insights on the aof's progress in achieving its strategic objectives in a panel session later. before that, let me first share a few observations. in fact, the aof was born during a rather testing time back five years ago. right after its launch, hong kong faced a series of challenges from social unrest to the global pandemic. but through these adversities, the aof managed to stay nimble and innovative, and still succeeded in making meaningful progress across several key areas. firstly, the aof has built up a strong and diverse membership base comprising nearly 400 senior executives from across the financial