How To Add Value to Hong Kong's Competitive Edge?

Extracts of the Opening Address by the Guest of Honour, The Honourable John TSANG Chun-wah, JP, Financial Secretary, HKSAR

 
There is an emerging consensus on the value of good corporate governance. Many studies have suggested a positive link between good corporate governance and company performance. Practising ethical corporate governance can enable corporations to effectively manage the risks arising from unethical behaviour, malpractice, or even corruption and fraud. The high standard of corporate governance has also enabled Hong Kong to maintain and enhance the competitiveness of the financial markets.
 
Over the years, the Hong Kong SAR Government (the Government) has been making conscious efforts to promote a robust and effective corporate governance regime. These include, amongst others, drawing up a Corporate Governance Action Plan together with the Securities and Futures Commission and The Hong Kong Exchanges and Clearing Limited in 2003 to bring Hong Kong's corporate governance standard into line with international ones and the latest effort in establishing the Financial Reporting Council in July 2007 to further enhance the quality of financial reporting by listed companies.
 
These efforts have begun to bear fruit as Hong Kong has been recognised by some international agencies as having good progress in strengthening corporate governance or being a genuine global financial heavyweight in the years ahead.
 
These achievements indeed rely on the concerted efforts of the business community. Riding on the momentum and past achievements, the Government would continue to vigorously pursue various corporate governance initiatives by strengthening the "Three-Cs" - compliance, culture and continuous collaboration:
 
 

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Compliance - The Government will continue to enhance the regulatory framework, eg. legislative proposals to give statutory backing to major listing requirements and a five-year project to modernise Hong Kong's Companies Ordinance.

 
•  Culture - Corporate governance ultimately depends on an ethical corporate culture through practising ethical governance and constantly upgrading themselves in this regard. Most importantly, training should cover, amongst others, the important topic of enhancing directors' ethical responsibilities and value judgment.
 
•  Continuous Collaboration - The success of building up good corporate governance culture and achieving satisfactory compliance hinges very much on the continuous and collective efforts of relevant stakeholders. The Government will continue these collaboration efforts, both in spirit and in action.
 

To demonstrate to local and international investors the Government's commitment in enhancing the quality of Hong Kong's market, continuous efforts will be made to take the "Three-Cs" to new heights through pooling the expertise, support and commitment of all stakeholders.

   

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