Hong Kong is the ideal gateway for Middle Eastern investors who are keen to capitalise on the Mainland’s rapid economic growth. International investors can gain exposures to different sectors of China through the Hong Kong platform. For example, for investors wanting to access China’s property market, they can make use of the Real Estate Investment Trusts listed in Hong Kong with underlying exposures to properties in Mainland China. There has also been encouraging innovation in combining sukuk with China equity exposures – what I refer to was the launch of an exchangeable sukuk linked to the underlying shares of a Mainland China company listed in the stock exchange of Hong Kong. The exchangeable sukuk, which is listed on our stock exchange as well, attracted a high subscription from Middle Eastern investors and reaffirmed the keen demand for investment opportunities with China growth prospect through the Hong Kong platform. In terms of infrastructural support, many leading international banks have geared up for Islamic finance products and many of them have a very strong presence in Hong Kong. Our market players are therefore well-equipped to leverage on the expertise in other parts of the world in structuring Shariah-compliant products and meeting the needs of even the most demanding Islamic financier. Hong Kong’s success factors lie not only in our premier location and versatility, but also in possessing the talent and infrastructure to become the conduit to facilitate the capital flows between the Middle East and Asia. What more should be done?
Eddie Yue: Hong Kong’s possible role in Islamic finance Welcome address by Mr Eddie Yue, Deputy Chief Executive of the Hong Kong Monetary Authority and Executive Board Chairman of the Treasury Markets Association, at the Hong Kong Showcase on Islamic Finance, Dubai and Amman, 11-12 May 2008. *  *  *  Ladies and gentleman, It is with great pleasure that I welcome you all to the Hong Kong Showcase on Islamic Finance, presented by members of the financial services industry in Hong Kong, and jointly organised by the Hong Kong Monetary Authority, the Hong Kong Treasury Markets Association and Hong Kong Trade Development Council, which is being held over two days in Dubai, UAE and Amman, Jordan. I would first like to thank Her Majesty Queen Rania Al-Abdullah of Jordan, who is hosting the Islamic Financial Services Board’s Annual Summit, the Central Bank of Jordan, and of course the IFSB itself, for graciously agreeing to allow us to organise this event under the auspices of the Annual Summit. This forum is indeed an excellent opportunity for the regulators, industry practitioners and investors in the Gulf region and Hong Kong to share new perspectives in the rapidly expanding area of Islamic finance, which transcends national borders and is fast penetrating global financial markets. Today we will be focusing on what Hong Kong has to offer and where it fits into this changing global financial landscape.