of the triangular trading links between fujian, hong kong and taiwan. in its role as an international financial centre, hong kong is also the host to a number of banks from taiwan. the taiwanese presence here consists of 4 licensed banks, 2 restricted licensed banks and 3 representative offices. there are also a significant number of other taiwanese banks which have expressed the intention to establish representative offices here. we are processing these applications in an orderly fashion on a “ first - come first - served ” basis. it has long been our policy not to allow in too many banks from the same region or country too quickly. as in the case of the japanese regional banks and the korean banks we therefore operate a queuing system. i know that this can sometimes be frustrating to those who are at the back of the queue. but i would like to made it clear that these is no reluctance on our part to admit banks from taiwan, as the existing presence here clearly demonstrates. i am sure that dr. jeffrey koo will also testify to this. 6. hong kong is currently going through tougher times as a financial centre. some foreign banks have cut back their lending here and a few banks have actually left. this has reflected problems back home rather than discontent with hong kong. however, it is true that hong kong must reduce the cost of doing business in order to remain competitive, and that is why the current fall in property prices and rents, while painful, is also necessary. i am confident that hong kong will emerge from the current crisis with a better - balanced economy and with even stronger fundamentals. above all, it can continue to rely on its main strategic advantage as a financial centre - namely, its proximity to the mainland of china. this places it in an ideal position to intermediate the trade and investment flows between places like fujian and taiwan. 7. in conclusion, i would like to repeat my welcome to you and to express my hope that your discussions today will lay the foundation for even greater cooperation between fujian, hong kong and taiwan in the future.

long term infrastructural projects because of the higher capital charge required to hold these assets on their books. more specifically, many european banks, which were very active in infrastructural financing in asia in the past decade, have reduced their exposures in this area and will continue to do so in the future. so many infrastructural projects in asia are now finding it increasingly difficult to secure the necessary finance. at the same time, many bankers and fund managers have said that there is still ample supply of funds looking for investment opportunities, but lending or investments in asia ’ s infrastructure has been greatly hampered by the shortage of “ bankable ” projects. so on the one hand asia has a huge funding need for infrastructural projects but on the other bankers and investors sitting on huge amounts of savings complain that they cannot find sufficient “ bankable ” projects. clearly there is a big gap here. there are many reasons why such gap exists, involving factors relating to legal, governance and political risks for investing in asia ’ s infrastructure. whatever the reasons, we must endeavour to find a workable solution to narrow the gap or else it will significantly impair asia ’ s growth potential as well as constraining the development of asia ’ s financial markets. 7. in conclusion, i would say that today ’ s conference is very timely as it will discuss the key challenges facing asia ’ s finance in the future. asia is now at a crossroad and we must work together to choose the right path. i have no doubt that this conference will contribute useful insights and advice on this very important subject. thank you. bis central bankers ’ speeches