take this occasion to share with you the following observations : 1. appropriate laws and regulations are needed to foster a regulatory environment that is conducive to financial innovation. it is worthwhile to attempt new ideas as long as they would not contravene the requirements of existing laws and regulations. however, we must have a full understanding of the related risks. and, we must have an appropriate risk control system or measures to mitigate or eliminate the risks. apart from complying with necessary regulatory procedure, the new ideas must facilitate market development without impairing the rights of consumers. to this end, the qdii scheme for stock investment can serve as a classic example. the introduction and moderation of the qdii scheme as well as the gradual opening of the mainland capital market represent an important step towards financial system reformation. these measures are also financial innovation conducive to financial market development. based on this situation, we can expect more innovation in financial policies. in the near future, a wave of keenly anticipated innovations in financial institutions, products, service and cooperation will arise from innovated financial policies. 2. there should be ongoing observation of changes in market development, analysis of special needs of customers, segmentation of customers and markets, as well as the establishment of a system to trace the demand of market and customers. the regulators should proceed in tandem with the pace of market development and monitor changes and characteristics of consumer demands. as far as financial products are concerned, asset management and structural financing that are selling like hot cakes are good examples. 3. financial innovation should be adapted to time, place and people. this issue has been explored before with macao as an example. 4. maintain good communication between regulators and market participants. it is normal for regulators to receive tons of complaints and enquiries from consumers. as these letters are mostly pinpointing financial products and services, regulators would gain a better understanding or come up with a general idea on the types of services demanded by consumers during the course of handling these complaints and enquiries. 5. investors and consumers need education. it is desirable to initiate a two - pronged measure. based on the objectives of protecting the rights of the consumers and investors as well as facilitating the penetration of the financial market, the regulator can actively embark on financial consumption related education through various channels such as the media and topical exhibitions etc. on the other hand, the market participants are encouraged to launch more promotions that are infused with educational

, and such support services can be provided by the macao financial system. 11 ) in november 2010, the then premier of the state council, mr. wen jiabao, visited macao for the 3rd ministerial meeting of the “ forum for economic cooperation between china and portuguese speaking countries ”. he announced a series of policy measures to promote macao to be the platform for economic cooperation between the countries. he hoped that macao would perform “ core function ” in promoting rmb trade settlement in the process, which would further embody macao ’ s position as platform for economic cooperation between china and lusophone countries. 12 ) macao ’ s uniqueness and competitive edges support its development into a rmb settlement platform for commercial and trade activities between the mainland and bis central bankers ’ speeches portuguese speaking countries. at the moment, the division of labour between the two financial centres, shanghai and hong kong, is clear cut ; shanghai is the “ onshore ” rmb centre while hong kong is the leading “ offshore ” centre. it is envisaged that macao can strengthen its cooperation with shanghai and hong kong, exploring the opportunity arising from the orderly financial reform in the mainland. to cope with the need of the country, macao can serve as a platform for regional economic and trade cooperation, by which it can help create an accommodative environment conducive to external trade, overall economic development, financial reform and modernization of our country. under such positive interaction, we can promote jointly the process of the internationalization of the rmb. thank you! bis central bankers ’ speeches