RE: The Role of Hong Kong in Building China's 21st Century Financial System

  1. On behalf of the Mainland Legal Affairs Committee of the Law Society, I attended the above luncheon discussion.

  2. There were altogether 26 attendants who are the leaders and elite of their own professions and trades attending this discussion. The key note speaker Mr. Vincent Cheng said the role that Hong Kong can play is to provide to China with:

    1. Best Practices

    2. Source of Capital

    3. An off-shore RMB settlement Centre

  3. Others advanced similar but more specific types of services that Hong Kong talents can provide, such as, creating a securitised market for non-performing loans of China state-owned enterprises both in Hong Kong and in China; promoting the concept of corporate governance in commercial world inside China; introducing more about trust concepts to the commercial world in China; emphasis that Hong Kong can and has the ability to accomplish all of them.

  4. Above all, Julius Wang raised the fundamental issue as to how the investors' interests can be looked after and safeguarded. He would like to know as to what role and extent the "Rule of Law" can play in the developing financial market in China.

  5. I echoed his comments and indicated that Hong Kong has a superb and well recognised judicial system worldwide. We should and could achieve more if there be a mutual enforcement of judgments between China and Hong Kong. At present, our law does not enable this to happen. I therefore urged those present in the luncheon to give input in advocating for changes in the law in this regard. As a matter of fact, if Hong Kong be permitted to export legal judgments in support of all these financial ventures in China it certainly could assist China to emerge as a giant not only financially but also politically in international arena.

Junius Ho