provides room for our banks to continue lending and providing relief measures to customers during the covid - 19 outbreak. 14. and our capital markets are thriving. hong kong was the world ’ s leading ipo centre last year. although global markets were tested by extreme volatility in the first quarter, our capital markets have continued to function without incident. as several large chinese companies that had listed in the us seek secondary listings in hong kong this year, we should once again achieve a very high ranking in the global ipo league table. 15. none of this happened by luck or by chance. the resilience we see now is the result of sustained efforts over many years. it ’ s the result of building capital and liquidity buffers into the banking system ; and prudently managing the reserves that support the linked exchange rate system. it ’ s the result of enhancing our own – and the banks ’ – operational resilience and business continuity plans. it ’ s the result of communicating effectively with stakeholders to maintain confidence in the financial system. 16. so this quality of resilience is the product of a long term investment in the many factors that make our system strong. abundance of opportunities 17. the second quality of an international financial centre that i want to talk about is its ability to generate opportunities for investors. advanced financial centres like hong kong compete fiercely with each other. we succeed by offering investors opportunities so that they can succeed. that means we need to keep innovating, exploring new frontiers and developing our value proposition. 18. hong kong ’ s advantages in offering opportunities to global investors is mainly down to three macro trends. i believe these will provide the impetus for us to continue growing and outperforming. 19. first of all, financial liberalisation on the mainland creates enormous opportunities for hong kong. we have always been the dominant financial gateway between the mainland and the rest of the world. today, more than half of international investors ’ stock and bond investments on the mainland are made through hong kong. we have also announced a pilot scheme for wealth management connect and have other initiatives under development in the greater bay area. 20. with our unique advantages and strengths – including the common law system and world2 / 4 bis central bankers'speeches class financial regulations and market practices – hong kong will remain the leading portal for international investors seeking opportunities on the mainland. 21. t he second trend that is creating opportunity in – and for – hong kong is fintech development. we

is not unlimited. third, the policy actions taken in the area of fiscal and monetary policy – as well as macroprudential and supervisory policy – have been necessary to mitigate the amplification of the immediate shock, enable the financial system to support households and businesses through the crisis, and to minimise the extent of longer - term difficulties. as a result of the pandemic we have seen over one million people in receipt of state income support. alongside the domestic economic shock, ireland remains sensitive to global developments, both the near - term global downturn and financial market conditions as well as any longer - term structural changes that might be triggered by the experience of the pandemic. closer to home, the outcome of the negotiations on the future eu - uk relationship is also of relevance to the macro - financial outlook. the immediate strain on households and businesses as a result of the economic shock has resulted in a necessary increase in public spending : fiscal policy is the first line of defence given the unprecedented collapse in economic activity. government support is also necessary to 1 / 2 bis central bankers'speeches minimise the risk of a long - term fall in the productive capacity of the economy due to covid - 19. the necessary intervention will result in much higher public debt than what would otherwise have been the case. the implications of this will be addressed in the bank ’ s next quarterly bulletin due to be published on 3 july. the near - term liquidity challenges faced by households and businesses as a result of the covid - 19 shock are significant and depending on future developments could result in solvency issues emerging. in the months ahead minimising the extent to which these liquidity issues are followed by solvency issues will be important. the banking system has a role to play, and it must do so in a sustainable way. temporary payment breaks that have been introduced are partly offsetting the immediate liquidity shock households and businesses are facing, but a portion may ultimately require longer - term solutions. in such cases, the central bank expects lenders to ensure appropriate solutions, including forbearance, are available. we expect lenders to engage with borrowers well in advance of the expiry of the payment break to support customers, and our existing arrears handling frameworks, including the statutory code of conduct on mortgage arrears ( ccma ), will apply in the normal manner. those frameworks are designed to protect the interests of borrowers, particularly in times where they