I am also referring to the geographical mix, with a large showing from Asia, in addition to delegates from Europe. This is a testament to the rapid growth of the green bond market in region. 4. Indeed, over the past few years, the green bond market has grown exponentially, including the green bond market in Hong Kong, and we are very pleased about this development. For many years, the HKMA has been working to promote the development of the Hong Kong bond market. Today, Hong Kong is the third largest bond issuer in Asia ex-Japan, behind only the Mainland of China and South Korea. 5. The HKMA plays more than just the promoter role in green finance. As many of you may know, the HKMA is the investment manager of the Exchange Fund. With assets under management over USD500 billion at the end of last year, we are one of the world’s largest asset owners. The HKMA has been very supportive of responsible investment, and has incorporated environmental, social and governance, or ESG, principles into our investment processes. Our disclosure rules would not allow me to give too many details. Suffice to say that items from green bonds to renewable energy projects such as wind farms feature in our portfolio. 6. As a long term investor, the HKMA considers risk and return over a long horizon. We believe looking at an investment proposal through the ESG lens would complement our normal riskreturn analysis, and help unveil the long-term value and risk of an investment. 7.
Of course the foreign exchange costs in the eurozone were limited right from the start of the EMU in 1999, but they will now disappear completely. For the economy as a whole, however, this exchange of cash has involved a relatively small cost, which is nevertheless symbolically important. A somewhat larger cost has arisen from the handling charges the companies have been forced to bear to hedge against undesirable fluctuations in exchange rates. This cost disappeared as early as 1999 within the eurozone, but it is not particularly large in relation to our GDP – perhaps a few tenths of a percentage point. A single currency will promote competition within the EU and benefit the consumers, who will experience lower prices and thereby have more money in their pockets. When everyone uses the same unit of currency, it is easier to compare prices between countries. It will also be an advantage for the national economy as a whole, since competition facilitates the work on holding down inflation. Some differences in prices are unavoidable and arise from transport and information costs, but not all of the differences can be attributed to these costs. Despite the fact that we now have a common market with free trade for goods and services throughout the entire EU, there are still large differences in prices between different countries within the union.