Election Series XIII - 8 Sep, 2004

FC Election Insights - Financial Services Sector

Hong Kong aspires to be a world financial centre on par with London and New York.

What do the 5 candidates in the Financial Services FC (FSFC) represent and do they reflect Hong Kong’s aspiration?


A. Background

1. Creation: The FSFC was created in 1991. Originally, insurance companies and brokers were put together in one FC but in 1998, they were split to create two FCs.

2. Voters: The FSFC consists of humans and corporate voters. The humans are the participants of exchange companies (brokers) and voting members of the Chinese Gold & Silver Exchange (CG&SE). There are less than 500 corporate and 100 individual voters altogether. Thus, this sector does not include many people one normally associates with financial services.

B. Candidates and Platforms

1. Chim Pui Chung - A former LegCo member for this FSFC, who was imprisoned for conspiracy to forge, is a colourful character. His major platform items include:

Treat industry and practitioners fairly
Amend unreasonable securities-related legislation
Ensure the HK Stock Exchange serves brokers’ interests
Fight for CG&SE’s benefit

2. Henry Wu - The incumbent member. His major platform (in slogans) items include:

Amend harsh securities-related legislation
Check powers of the Securities & Futures Commission (SFC)
Fight for reasonable earnings of [presumably] brokers

3. Christopher Cheung - Securities dealer. His major platform items include:

Amend unreasonable legislation (to ensure the industry survives)
Respect traditional (local broking) culture
Enhance the status of the CG&SE

4. Fung Ka Pun - Liberal Party member. His major platform items include:

Create a level playing field
Ensure legislative/regulatory bodies listen to the sector
Set-up committee to provide free legal advice to [presumably to brokers]
Revive HK’s gold market

5. Fung Chi Kin - Hong Kong Progressive Alliance member and a former LegCo member who lost to the incumbent in 2000. His major platform items include:

Promote non-price competition
Reform the SFC
Promote co-operation between HK’s and Shanghai’s bullion exchanges
Fight for more FCs for listed companies, and various groups of sector participants
“To safeguard the core values of HK, being a goose that lays golden eggs”

C. Observations

1. Goose eggs: The one piece of campaign material that each of the candidates gave to the government for postage to all the FSFC voters are all in Chinese (with only one candidate making a reference to goose eggs in English), reflecting the focus of the majority of voters.

2. Local brokers’ interests: As the majority of the voters are local brokers and dealers, the FC candidates say they will resist tougher legislation and regulation of their sector, hence references to fairness, local culture and checking the powers of the SFC - HK’s statutory regulatory body for the financial services sector - hardly the sort of stuff to turn HK into an international financial centre comparable to London and New York.

CHRISTINE LOH
Civic Exchange - HK’s independent think tank
www.civic-exchange.org