of the total ; • more than 700 eu companies use hong kong as regional headquarters or regional offices ; • the eu is the 2nd largest source of visitors and 4th largest source of tourist earnings for hong kong ; • there are over 50 licensed banks and other authorized institutions in hong kong from the eu countries, the largest concentration in asia. clearly, what happens in the eu matters to hong kong. what therefore will be the impact of the euro on the participating countries? there should certainly be a number of economic benefits, including in particular : • a huge increase in transparency from the single currency which will make it easier to compare prices across national frontiers. this will boost competition, bring down costs and prices, and improve efficiency ; • a reduction in transaction costs, in particular from the elimination of foreign exchange commissions. this will encourage trade and cross - border investment flows ; • lower interest rates in individual countries from the elimination from the foreign exchange risk premium. this will reduce financing costs and stimulate investment and output ; • the development of larger and more liquid debt and stock markets across the euro zone. this will create a vast new pool of capital for companies, thus giving a further stimulus to investment ; • tighter fiscal discipline on the member countries under the stability and growth pact and monetary discipline exercised by the new european central bank. both these should ease inflationary expectations and produce a more stable financial environment for the euro zone. in summary, the single currency should be able to deliver higher economic growth and therefore increased demand for imports by the euro countries. as one of the eu ’ s major trading partners, this should benefit hong kong. hong kong may also be able to take advantage of the increased flow of funds for global investment which may be forthcoming from a greatly enlarged european capital market. furthermore, to the extent that an offshore euro market develops, hong kong would be an obvious location for this in asia. this reflects the existing large presence of european banks in hong kong and our role as a bridge between europe and mainland china. finally, hong kong is one of the world ’ s largest holders of foreign exchange reserves and the euro will provide interesting opportunities for diversification of our portfolio. of course, the advent of the single currency also brings with it certain risks. the discipline imposed by the single currency will not always be comfortable, particularly when the business cycles diverge in different member countries. this could set up tensions which could at worst lead to a break - up of monetary union or at least undermine confidence in the euro. the

eddie yue : climate business forum - asia pacific keynote address by mr eddie yue, chief executive of the hong kong monetary authority, at the climate business forum : asia pacific, hong kong, 27 february 2024. * * * good morning everyone, it is my great pleasure to welcome you all to the climate business forum : asia pacific, co - hosted by the international finance corporation ( ifc ) and the hong kong monetary authority ( hkma ). for those of you coming to hong kong from overseas, i would like to extend a very warm welcome to you all and i hope that apart from this forum you can find time to enjoy our lively and vibrant city. today's forum is the anchor event of the first hong kong green week. it brings together top executives and thought leaders in asia pacific and provides a platform to facilitate the exchange of ideas and knowledge, and the building of new networks and relationships. we hope that all these will help incubate new business opportunities and contribute towards addressing the bigger issues of climate change and sustainability. sustainability has always been a very complex and challenging issue. but sometimes, as we live in a complex world, we are distracted by other more eminent issues, whether it is market volatility, a pandemic, or the complex geopolitics we are facing. but climate change is not a problem that will go away on its own. in fact, it has become increasingly pressing and also intertwined with other global challenges that we face. the apac region is highly vulnerable to the impact of climate change. according to a report by the united nations development programme, asia - pacific countries experienced, on average, six natural disasters a year over the last 30 years a€ “ which is about twice as many as developing countries of latin america and the caribbean, and about three times as many as in sub - saharan africa. the region has seen an escalation in the intensity and frequency of extreme weather events, a decline in biodiversity, rising sea levels, and an increase in climate - induced disasters. asia pacific is also a key contributor to the problem, as we are producing more than half of the world's carbon dioxide emissions. and for the region as a whole, we need to reduce emissions, adapt to climate change, build resilience, and embrace innovation. it is not just about addressing a global issue that affects everyone, but also about protecting and helping our own people in asia. this need does not suggest a regression in our developmental