Research on Corporate Hong Kong's Readiness for the Mainland Financial Markets

It is obvious that Hong Kong's economic development is closely tied to the Mainland market. The further liberalisation of the Mainland finance industry in the coming years has the potential to provide strong growth opportunities for Hong Kong based practitioners. Though we enjoy the natural advantages of proximity and cultural ties, we also face keen competition from regional and global players. Therefore, it is important for Hong Kong to seriously re-consider whether our industry and our people are ready to exploit these opportunities as they come along.

As one of the leading industry professional associations for finance practitioners in Hong Kong, the HKSI believes that it is necessary for our members and the finance community at large to be aware of our level of "readiness" for the Mainland market.

Join hands with the Academics and Practitioners
Against this background, the HKSI Board decided to commission Lingnan University (LU) to do an independent research to assess our industry's readiness. The research team was led by Professor K F Lau and Professor Kent Lai from LU. We believe that through a structured research process, the findings can provide useful pointers to facilitate our practitioners' strategic planning and fine-tuning of their corporate strategy for the Mainland market.

The Institute is indebted to the HKSI Board of Directors, and Members of the Research Subcommittee - Mr Matthew Harrison of the Hong Kong Exchanges and Clearing Limited, Professor Paul McGuiness of the Chinese University of Hong Kong, Mr Joseph Lee of the Securities and Futures Commission, Mr Alec Tsui of WAG Financial Services Group and Professor John Wei of the Hong Kong University of Science and Technology. Insights and guidance from these experienced professionals help assured the quality of the project.

Mainland Market Readiness Index (MMR Index)
One of the key deliverables of the research project is the development of a "Mainland Market Readiness Index". The Index, first of its kind, intends to provide a simple-to-use vehicle for corporates to assess their readiness for the Mainland market.

Going Forward
While every effort is made to ensure the compilation of the Index serves the purpose of general application, as the research project is a pilot one, it is prudent to treat the Index as a preliminary finding that helps put the industry's current state into perspective. Over time, the Institute would like to review the components and application of the Index by expanding the base of the research, not only in numbers but also to include other sectors across the spectrum.

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