Fifteen private banks have opened for business since 2009, bringing the total to 45 banks offering private banking services to their clients today. For the asset management business as a whole, the combined fund management assets hit a record high of $ trillion in 2012, with 65% of the funds sourced from non-Hong Kong investors, according to a recent SFC survey. It is, however, worth noting that the survey also showed that 74% of the practitioners in the asset management field were engaged in the sales and marketing functions. While the figure has already trended downward from 81% in 2008, it does reflect the fact that Hong Kong needs to further expand the other segments of the asset management “value added” chain, e.g. in structuring, research, investment and trading. To achieve this objective, the HKMA’s outreach work in the last two to three years has taken a new focus on asset owners, such as pension funds and sovereign wealth funds. 11. Since 2010, the Market Development Team of the HKMA attended hundreds of meetings with overseas asset managers and owners. I am pleased to report that these outreaching campaigns are generating positive results, with about one-third of the institutions that we have approached indicating a commitment to devote resources to Hong Kong. Specifically, 67 institutions have expressed interest in pursuing a Hong Kong presence and 48 institutions are planning to expand their existing operations in Hong Kong. 12. There are several reasons why the HKMA is uniquely well placed to undertake effective outreach programmes.
First, the HKMA is a banking supervisor and banks are the key players in the financial markets in Hong Kong. Second, the HKMA is also itself a major asset owner and manager, with over $ billion of Exchange Fund assets under management. This makes it easier for the HKMA to make the right connections and speak the same language of the asset owners or managers overseas. Thirdly, the HKMA senior management is fortunate to have the support from a small but dedicated team of highly professional staff in the outreaching programmes. Finally, the HKMA is part of the Government and it is easier for us to refer issues or problems to the relevant government bureaux or departments for consideration or actions. In this context, I would like to thank in  BIS central bankers’ speeches  3  particular the SFC and InvestHK, which have been working very closely with us to provide the much needed advice or help when overseas financial institutions are thinking of locating or relocating their operations to Hong Kong. Concluding remarks 13. Ladies and gentlemen, I would like to end my comments by saying this: competition amongst financial centres has always been fierce and will be even more so in the future. Competition is quite like rowing a boat up a river, in which case there is a Chinese saying: “ 逆水行舟，不進則退”or in English: “excel and advance” or “stay put and be left behind”! 14.