, and are aiming to launch the final version soon. another important area is transition finance. it has evolved from a fringe topic mired in greenwashing controversy, to generally accepted as a mean to support emerging markets and hard - to - abate sectors in achieving their climate objectives. here the issue is almost the opposite of that of taxonomy : while we now have a consensus at the conceptual level, operationalising transition finance remains a challenge, given that what qualifies as transition finance is often firm, industry and country - specific. conclusion i hope i have given you a good overview of our approach to regulation and the symbiosis between regulation and market development. for sure regulation is no panacea to all the problems that we face, but good regulation should provide a strong foundation for markets to prosper. and i am sure that we would all learn more about this at the rest of today's event. thank you. 5 / 5 bis - central bankers'speeches

developed the liquidity, infrastructure and ecosystem that are capable of serving the financing, investment and risk management needs of corporates and investors alike. there are many factors behind the success of hong kong as a china gateway and an offshore rmb hub. our " one country, two systems " institutional arrangement is critical : it facilitates cross - boundary cooperation between mainland and hong kong authorities, while allowing hong kong to maintain a market environment that is familiar to market participants from the rest of the world. 2 / 5 bis - central bankers'speeches the design of these products and service offerings are also conducive to international participation. investors using these connect schemes can continue to follow common offshore market practices and rules that they are accustomed to, and leveraging their established legal and operational set - ups in hong kong, without the need to open onshore accounts and engage onshore agents. all these are familiar factors. i would, however, argue that hong kong's robust regulatory regime has played a crucial, if understated role. for our fellow mainland regulators, the various connect schemes in effect allow investors that are not directly under their purview to access the mainland market. mainland authorities would need to have confidence that such investors are properly regulated in hong kong. consider how much emphasis that mainland authorities put in market stability and order, the trust that they have in hong kong's regime is remarkable. likewise for international investors : the fact that they are now investing in a market – the mainland market – without actually having connected to that market shows how much they trust that hong kong regulators have done their homework for them, and that we will make sure that their interest is well - protected and the investment channel will run in an orderly manner. our robust regulation is what underpins this trust and in turn, our success as the hub for all things china. ( ii ) tech and innovation tech and innovation is another area that i believe regulation and market development are complementary and can feed into each other in a virtuous cycle. this is particularly the case for virtual assets. there was a time when virtual assets and the so - called cryptocurrencies were seen as a way to escape from the reach of governments and regulation. some continue to hold this belief, but they are now a minority. two reasons explain this. first is some high profile failures in the industry. many of the causes behind the failures - poor governance, misuse of client assets, etc. – are not new and are exactly the