to be a responsible stakeholder. we seek to achieve this — by putting in place mechanisms to closely monitor market developments and behaviours ; by continually improving our regulatory regimes to mitigate risks in the financial system ; by building buffers and planning for contingencies on sunny days, and by swiftly implementing contingency plans when storm clouds approach ; and by contributing to policy deliberation and standard setting at international regulatory forums. we also build resilience by enabling market participants to seize new opportunities to deepen and expand hong kong ’ s role as an ifc. this brings me to my third word : opportunity. opportunity for many decades hong kong has been intermediating the trade, investment, and financial flows between china and the world. today over 60 per cent of foreign direct investment into the mainland is routed through hong kong. a similar figure applies to china ’ s outward investments. hong kong is the pre - eminent fund - raising venue for mainland corporates, through equity ipos, debt issuance, bank lending, and various forms of private investment. in recent years, two major developments in financial linkage have been gaining momentum. one is the continuous opening of the mainland ’ s financial markets to global investors through the various northbound connect schemes with hong kong. the other is the increasing southbound traffic, again through the connect schemes, that enables mainland investors to invest in overseas financial assets. these are significant developments. they demonstrate china ’ s confidence and willingness to be connected to the global financial markets. the southbound schemes also send a clear 2 / 4 bis central bankers'speeches message : as china ’ s economy grows and its people become more affluent, both institutional and retail investors look for more diversified allocation to overseas assets. let me offer some context here. when we think about the northbound traffic, we should bear in mind that, in global terms, china ’ s stock and bond markets are second in size only to their us counterparts. for the southbound traffic, we are talking about managing the wealth of the world ’ s second largest economy and most populous country. and we are only in the early stages of these two - way flows through the connect schemes. hong kong is the natural choice of venue to host the connect schemes. quite apart from our excellent ecosystem and proven resilience, we have a strong record as the mainland ’ s trusted partner in its entry into the global financial system. we have been able to assist in achieving the desired outcomes while ensuring the integrity and stability of the mainland ’

eddie yue : hong kong's positioning and prospect as an international financial centre opening remarks by mr eddie yue, chief executive of the hong kong monetary authority, at the people's bank of china and hong kong monetary authority joint seminar “ hong kong's positioning and prospect as an international financial centre ”, 9 december 2021. * * * distinguished guests and friends in beijing, hong kong and overseas : good afternoon, and a very warm welcome to you all. i begin with heartfelt thanks to governor yi, not only for his inspiring opening remarks, but also for the unfailing support the pboc has given to hong kong over many years. my colleagues and i also extend our gratitude to international institutions such as the bis and the imf for your close partnership through all these years. without your support, hong kong ’ s financial sector would be in a far less robust position than it is today. in a little over six months we will be celebrating the 25th anniversary of hong kong ’ s establishment as a special administrative region. this is a good moment to pause – both to reflect on hong kong ’ s success as an international financial centre, and to consider the steps we need to take to build on that success. tackling such a vast subject in ten minutes is a tall order. let me make an attempt by asking two simple questions. what are the attributes of an ifc? and, how far does hong kong possess them? i do not have all the answers. but i will approach these questions with three words : ecosystem, resilience, and opportunity. ecosystem let me start with the ecosystem. by this, i mean the various components, mechanisms, and interactions within the financial system. but i also refer to the larger environment in which the financial system operates. these two domains are intricately connected with each other. without a favourable operating environment an ifc cannot flourish. hong kong ’ s financial services are now broadly based and well established, reinforcing our status as a global centre on many fronts. we are also championing emerging trends that shape the future of finance – notably fintech and green finance. all of this results from the hard work of our financial practitioners, supported by world - class professional services in fields ranging from accounting to risk management and compliance. hong kong has a fully bilingual legal system, rooted in the common law, with an independent judiciary and a strong legal profession. our financial regulatory regime is internationally recognised for its open and progressive approach. these are tried