1. Financial Institutions in Hong Kong
Econ 310 Section 4
Financial Institutions in Hong Kong
Group Members:
Cheng Wai Lun, Alan (033163)
Tsang Sze Man, Judy (033182)
Lee Lai Fong, Nesta (033185)
Tang Wing Yi, Winnie (033198)

2. The prospect of Debt Market
Topic:
The prospect of Debt Market
in Hong Kong

3. What is “Debt Market”?
(I) Debt markets are often referred to generically as the bond market.
(II) A bond is a security that is a claim on the earnings and assets of a corporation.
(I) is true, (II) false.
(I) is false, (II) true.
Both are true.
Both are false.

4. Before 1990’s:
Hong Kong Government only emphasize the development of Bank and Equities Market

5. Until 1997: Asian Financial Crisis
Hong Kong Government want Hong Kong to become a “Debt Market Center”

6. Does Hong Kong has potential to become such Asian debt market centre?

7. We would like to talk about this by:
The opportunities of developing debt market in H.K
The threat of development
Ways to facilitate the debt market

8. Debt market loans to an entity
 promises to repay the bondholders or note-holders the total amount borrowed
Not owners of an entity, but its creditors
Attention
 debt prices fluctuate in response to the forces of supply and demand
 influenced by other factors

9. Debt market
(Source: Hong Kong Monetary Authority)

10. Debt market
(Source: Hong Kong Monetary Authority)

11. Debt market
(Source: Hong Kong Monetary Authority)

12. Debt market
(Source: Hong Kong Monetary Authority)

13. Opportunity Political and Economic environment
Encourage public corporations
Executive forcibly on MPF scheme
Mindset on the investment in Chinese

14. Threats Interest Rate (Source: Hong Kong Monetary Authority)
Attraction

15. Threats
(Source: Hong Kong Monetary Authority)
Large fluctuation

16. Threats Investment culture
>>short-term and high return investment
Neglected the principle of diversification of risk

17. Which factor is not the threat of developing Debt Market?
A) Investment Culture
B) Executive forcibly on MPF Scheme
C) Neglected the principle of diversification
of risk
D) Increase of the interest rate

18. Facilitate the Debt Market
Hong Kong Government:
provide a favourable external factors
stable financial market
sound legal system

19. Facilitate the Debt Market
Asian governments
 have a high saving rate of about 30 percent

20. Facilitate the Debt Market
Mutual Debt Market
 additional and stable investment channel for investors

21. Need to Focus on: Education Private sector or corporate
 people recognize with debt market
Private sector or corporate
willing to issue bonds in order to satisfy the demand in market
beneficial to raise more money for the better development to corporate.

22. Which is/are the favorable external factor(s)?
A) Stable financial market
B) Sound legal system
C) Both of them
D) None of the above

23. ~~~The End~~~