Hong Kong forms financial services task force

A Preparatory Task Force on the Financial Services Development Council has been established by the government to recover lost ground in financial services.

"The council is a platform of the collaboration of the public and private sector to push forward Hong Kong’s position as an international financial centre of the country, to promote the further development our financial service and also to promote Hong Kong’s financial services overseas," said Chief Executive-elect CY Leung.

He reiterated that the council will not replace the Monetary Authority and other regulatory bodies.

Leung said Laura Cha will be the task force chairperson. Other members include Alasdair Morrison, Tse Yung-hoi, Laurence Li and the Under Secretary for Financial Services & the Treasury to be appointed later.

Cha said the purpose of the task force is to study the terms of reference, the structure and the operation model of the council.

"In the process, we will consult the stakeholders, the industry and the sector. In the end, we will produce a report with recommendations to the Financial Secretary and the Chief Executive."

Volatile global financial markets; the massive debt crisis in Europe and slower growth in China and the United States are hammering Hong Kong’s financial services sector.

Hong Kong's economic growth slowed sharply in the first quarter due to moribund exports and a weak global economy, the government said. The economy grew 0.4% year-on-year in the first three months of the year compared with 3% in the fourth quarter of 2011.

Exports fell 5.7% from January-March year-on-year, the slowest year-on-year growth since the fourth quarter of 2009.

Hong Kong's economic growth is expected to slow to 1% to 3% this year from 5% in 2011, said the government.