16 sep 2022 keynote speech at the treasury markets summit 2022 eddie yue, chief executive, hong kong monetary authority “ new impetus for hong kong ” distinguished guests, members, and friends of the treasury markets association ( tma ), ladies and gentlemen. opening 1. it is an honour and a pleasure to be asked to give the keynote speech at this year ’ s treasury markets summit. 2. as much as i wanted to be with you all in - person, i have to join this event virtually while travelling to international meetings. travel has been rather difficult for the past two - anda - half years but now that most cities and countries have achieved high vaccination rates and covid - related symptoms have generally become less severe, i am taking every opportunity to physically represent hong kong at key international meetings. there is really no substitute for face - to - face connection, and i do hope such gatherings are back to stay. this is a great time and a perfect opportunity for us to show the world that hong kong is back, stronger and better than ever. 3. in my remarks today, i wish to talk about hong kong ’ s progress as an international financial centre, and to highlight the rapid growth of mainland china and the rmb. no appreciation of hong kong ’ s growth can be complete without acknowledging the rest of the nation ’ s progress : looking at one without the other would be like admiring a sunrise without seeing the sky behind it. 4. so let me start with what hong kong and mainland china have achieved together in the past year and how much progress we have made as an offshore rmb business hub. i will then elaborate on the opportunities in front of us because i am very confident that our collective efforts will further strengthen hong kong ’ s position as an international financial centre. achievements in the past year on offshore rmb hub and rmb internationalisation development 5. this year, we celebrate the 25th anniversary of the establishment of the hong kong special administrative region ( hksar ) of the people ’ s republic of china. hong kong is poised to enter a new era of opportunities as we better integrate into and align with the nation ’ s development. the national “ 14th five - year plan ” and the development of the guangdong - hong kong - macao greater bay area will herald massive opportunities for hong kong. in particular, in the 14th five - year plan, the central people ’ s government reaffirmed hong kong ’ s positioning as an international financial centre and, specifically

payment services, and iii ) third, we will put in place a robust legal and regulatory framework to manage the risks that may arise from these new technologies. let me elaborate below on the second and third components of this strategy. iii. embracing the m - commerce opportunities in hk 14. talking about m - commerce, i believe that, if there is an “ app ” that would guide market players to search for a place to launch their m - payment business with any of these key words – “ market readiness ”, “ policy support ”, or “ sound regulatory framework ”, the choices to pop up on your app screen would likely include hong kong. let me explain. ( a ) market readiness 15. in terms of market readiness, the relevant statistics clearly indicate that hong kong is ready and willing to embrace m - commerce. according to some research, the market size of hong kong ’ s mobile commerce exceeded hk $ 6 billion in 2012, and is expected to reach near hk $ 18 billion by 2015. 2 16. these online shoppers are well - equipped for mobile payment. the mobile subscriber penetration rate in hong kong, which stood at 237 % as of may 2014, is one of the highest in the world. moreover, many of the new smartphones shipped to hong kong are nfc - enabled. 17. thanks to the promotional efforts of various payment service providers, people in hong kong are very used to making contactless payment. some statistics show that among non - sources : paypal consumer online and mobile shopping insights 2012. bis central bankers ’ speeches cash transactions, the portion of contact - less transactions amounts to about 85 %. 3 with such a technology - savvy population, there is a huge market that m - commerce merchants can tap into. ( b ) policy support 18. now, let me turn to “ policy support ”. development of the policy framework for mobile payment services started a few years back. in 2012, the hkma commissioned a consultant to examine how our city should best embrace the m - payment technology, and promote creativity through competition, while ensuring sufficient protection of the users in terms of prepaid stored value and data security. the consultant made two recommendations. “ soft ” infrastructure – best practices 19. the first one focused on building the critical “ soft ” infrastructure. the consultant suggested that the hkma should work with the industry to develop a set of standards to ensure inter - operability and system security. we agreed on this point, and worked proactive