Speaking at the second pan-Asian Regulatory Summit in Singapore, the head of Hong Kong’s financial watchdog said Asian countries, including Hong Kong, should take a sensible approach when looking to adopt reforms which are a result of the global financial crisis which, he pointed out, “originated in the US and Europe”.
“This pragmatic, sensible and proven approach has served Asian countries, including Hong Kong, well over the years,” said Fong. “Likewise, in considering financial reforms, Asian nations would do well to adopt and adapt international regulatory reform initiatives, as appropriate, and in initiating their own reforms to address specific local regulatory issues.”
Fong added, in order for Asia to have a voice in shaping the global regulatory reforms, it is of equal importance that Asian nations actively engage their counterparts in the West through participation in various standard setting bodies and international organizations, such as the Financial Stability Board.
“This would enable Asian nations to better understand the functioning of global financial markets and new regulatory concerns such as systemic risks associated with shadow banking and OTC derivatives market, as well as to avoid making the same mistakes in the future,” Fong added.