bank credit in an easier and cheaper way than before. 45. we ’ re also looking to apply new technologies to addressing long - standing pain points in banking. take international remittances for example. the process is currently slow and costly. along with the bank of thailand, the hkma initiated a central bank digital currency project for cross - border payments that has now been joined by the central banks of the united arab emirates and china. this ‘ m - cbdc bridge ’ project is exploring the potential of using blockchain technology to facilitate real - time cross - border payments, which could reduce costs and enhance transparency for users. cbdcs have a range of promising applications and, together with our partner central banks, we want to be at the forefront of this development. enhancing the platform 46. we understand that a supportive regulatory environment matters a great deal to the providers and users of financial services. that ’ s why the hkma and other financial regulators are working closely with the government to keep enhancing the attractiveness of the hong kong platform. we keep our market infrastructure, legal framework, regulatory regime and tax system under constant review to make sure that they are business - friendly, forward - looking and competitive. 47. in recent years, we ’ ve been undertaking reforms that provide modern legal structures catering to the evolving needs of the asset management industry. and we are revising our tax code to make it more competitive for a wide range of financial services, including corporate treasury activities, the fund industry, private equity and wealth management. closing remarks 48. ladies and gentlemen, i started my speech with the question why hong kong is irreplaceable. in the past 15 minutes or so i highlighted the strength of hong kong ’ s ecosystem as an international financial centre, the scale of opportunity ahead and the actions we are taking to maintain our competitiveness. i hope you will agree with me that hong kong ’ s exceptional resilience under recent pressure reinforces – rather than calls into question – its long - term future as a global financial hub. 49. the legal profession has an important role to play in this journey, and i look forward to our continued close collaboration. 50. thank you. 5 / 5 bis central bankers'speeches

thrive in 2020, thanks to the secondary listings by home - coming mainland corporates and ipos by new economy companies. 33. but hong kong is much more than a capital - raising gateway for chinese firms. today, mainland institutions and individuals use hong kong to put their capital to work. southbound flows from the mainland to hong kong through the stock connect schemes rose by 128 per cent last year. 34. the volume of capital flowing from the mainland into hong kong is set to grow further. very soon, we will be launching a wealth management connect scheme. this next connect will ultimately offer customers across the greater bay area access to hong kong ’ s world - leading 3 / 5 bis central bankers'speeches wealth management services. we are also in discussion with our mainland counterparts about launching southbound trading under bond connect. 35. both of these developments will create great opportunities for hong kong as a financial centre. but we will not stop there. china ’ s economic growth and wealth generation, as well as global investors ’ increasing appetite for rmb - denominated assets, all point towards a bigger role for hong kong. our city can intermediate financial flows between the mainland and the rest of the world for decades to come. at the hkma, we are continuously working towards new policy breakthroughs that can strengthen hong kong ’ s ability to do that. opportunity – going green 36. the china opportunity for hong kong is compelling. but hong kong must also lead the other trends shaping the future of finance. and in my view, at the top of the global financial agenda are : sustainable finance and technology. and that is where the hkma, in its market development role, is focusing its efforts. 37. to meet the paris agreement climate change target, the world needs to transition to net - zero carbon emissions by 2050. that will cost an estimated one to two trillion us dollars a year, making sustainability one of the biggest drivers of capital flows in the decades ahead. 38. in hong kong, we are determined to be at the forefront of this transition. first, the government has set a net - zero emissions target by 2050, in line with developed economies globally. we are also integrating sustainability into our exchange fund investments and banking system. and the hkma is co - operating with other regulators to green our financial system by setting supervisory expectations, encouraging climate disclosure, and building industry capacity. in fact, hong kong is the first asian jurisdiction that has committed to comply with the recommendations of the task force on