Since then, Hong Kong has begun to play an active role in the activities of the BIS, including attending its regular meetings and participating in committees focusing on global financial issues, in particular, the Committee on Banking Supervision and the Committee on Payment and Settlement Systems. In July 1998, the BIS established in Hong Kong its Asia Pacific office, which is also the Bank’s first overseas office. In addition, Hong Kong continued to attend the annual meetings of the Asian Development Bank, International Monetary Fund and World Bank, as well as maintaining close technical co-operation with these bodies. Since the outbreak of the Asian financial turmoil, the issues of financial stability and new global financial architecture have become increasingly important. In addition to voicing our views on these topical issues under the name of “Hong Kong, China”, Hong Kong has also actively participated in the lending arrangements organised by international financial agencies. In 1998, we cochaired the G22 Working Group on Transparency and Accountability and actively promoted the disclosure standards in both public and private sectors. At present we have been invited to attend the BIS Committee on Global Financial System and its working group meetings. While the above underscore Hong Kong’s status as an international financial centre, it also demonstrates to the international financial community the successful implementation of the “one country, two systems” principle. Conclusion 21. Time flies. Nine years have passed since the Basic Law was promulgated.
Within these two broad guidelines, we shall continue to make efforts in the following tasks: (a) implementing credible financial and monetary policies and further strengthening the linked exchange rate system; (b) engaging in market operations and managing Hong Kong’s reserves with a high level of transparency and accountancy; (c) further improving the banking supervision system, ensuring the integrity, and increasing the competitiveness, of the banking sector; (d) promoting the development of the financial infrastructure, including the debt market and payment systems, heightening Hong Kong’s status as an international financial centre; (e) actively participating in international co-operation and seek to improve the international financial architecture; and (f) discharging our duties with a high degree of professionalism to gain confidence from both the public and international community. 23. The 21st century is fast approaching, with just some 200 days to go. The financial sector will then also embark on a new era. All that we have done in the past and are working on now, including 5  BIS Review 39 /1999  organising this seminar on the Basic Law, will help prepare us with a firm foundation for taking on the next century’s challenges. I strongly believe that the “one country, two systems” principle will continue to play an important role in the 21st century, and that both the Mainland, one of the world’s largest economies, and Hong Kong, one the world’s freest and most open economies, stand to reap immense benefits from it. Thank you. BIS Review 39/1999  6