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24 ANNUAL REPORT 2017 Advisory Committees
THE EXCHANGE FUND ADVISORY COMMITTEE
Chairman 1 March 2018
The Honourable Paul CHAN Mo-po, GBM, GBS, MH, JP The Honourable John TSANG Chun-wah, GBM, JP The Financial Secretary The Financial Secretary (from 16 January 2017) (until 15 January 2017) Members
Mr Norman T.L. CHAN, GBS, JP Professor Lawrence J. LAU, GBS, JP The Monetary Authority Ralph and Claire Landau Professor of Economics The Chinese University of Hong Kong
Mr Benjamin HUNG Pi-cheng, BBS, JP Mr Peter WONG Tung-shun, JP Regional Chief Executive Officer, Greater China & North Asia Deputy Chairman and Chief Executive Chief Executive Officer, Retail Banking The Hongkong and Shanghai Banking Corporation Limited Standard Chartered Bank
Mr Carlson TONG, SBS, JP Dr David WONG Yau-kar, GBS, JP Chairman Managing Director Securities and Futures Commission United Overseas Investments Limited Page 25
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Advisory Committees
Professor Stephen CHEUNG Yan-leung, BBS, JP Mrs Angelina LEE WONG Pui-ling, SBS, JP President Partner The Education University of Hong Kong Woo, Kwan, Lee & Lo
Mr Philip TSAI Wing-chung, BBS, JP Mr T. Brian STEVENSON, SBS, JP Chairman Deloitte China
Mr Nicky LO Kar-chun, SBS, JP Mr Silas YANG Siu-shun, JP
Mr Anthony CHOW Wing-kin, SBS, JP Dr Moses CHENG Mo-chi, GBM, GBS, JP Consultant Chairman Guantao & Chow Solicitors and Notaries Insurance Authority Page 26
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Advisory Committees
The Honourable Bernard Charnwut CHAN, GBS, JP Mr LAU Ming-wai, GBS, JP President Chairman Asia Financial Holdings Limited Chinese Estates Holdings Limited (from 1 August 2017) (from 1 August 2017)
Ms Agnes CHAN Sui-kuen Mr GAO Yingxin Managing Partner, Hong Kong and Macau Vice Chairman and Chief Executive Ernst & Young Bank of China (Hong Kong) Limited (from 12 February 2018) (from 20 February 2018)
Mr YUE Yi Dr LO Ka-shui, GBS, JP Vice Chairman and Chief Executive Chairman and Managing Director Bank of China (Hong Kong) Limited Great Eagle Holdings Limited (until 31 December 2017) (until 31 January 2018)
Secretary Ms Carrie CHAN Page 27
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Advisory Committees
THE EXCHANGE FUND ADVISORY COMMITTEE
SUB-COMMITTEE STRUCTURE
Governance Sub-Committee
Oversight
Audit Sub-Committee
Exchange Fund Advisory Committee Currency Board Sub-Committee
Investment Sub-Committee
Technical
Financial Infrastructure and Market Development Sub-Committee Page 28
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Advisory Committees
THE EXCHANGE FUND ADVISORY COMMITTEE
GOVERNANCE SUB-COMMITTEE
Chairman
Professor Lawrence J. LAU, GBS, JP Ralph and Claire Landau Professor of Economics The Chinese University of Hong Kong
Members
Mr Carlson TONG, SBS, JP Dr David WONG Yau-kar, GBS, JP Chairman Managing Director Securities and Futures Commission United Overseas Investments Limited
Mrs Angelina LEE WONG Pui-ling, SBS, JP Mr Philip TSAI Wing-chung, BBS, JP Partner Chairman Woo, Kwan, Lee & Lo Deloitte China
Mr T. Brian STEVENSON, SBS, JP Mr Nicky LO Kar-chun, SBS, JP
Mr Anthony CHOW Wing-kin, SBS, JP Dr Moses CHENG Mo-chi, GBM, GBS, JP Consultant Chairman Guantao & Chow Solicitors and Notaries Insurance Authority
Mr LAU Ming-wai, GBS, JP The Honourable Bernard Charnwut CHAN, GBS, JP Chairman President Chinese Estates Holdings Limited Asia Financial Holdings Limited (from 1 August 2017) (from 19 September 2017)
Ms Agnes CHAN Sui-kuen Professor Stephen CHEUNG Yan-leung, BBS, JP Managing Partner, Hong Kong and Macau President Ernst & Young The Education University of Hong Kong (from 12 February 2018) (until 18 September 2017)
Dr LO Ka-shui, GBS, JP Chairman and Managing Director Great Eagle Holdings Limited (until 31 January 2018)
Secretary Ms Carrie CHAN Page 29
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Advisory Committees
Terms of Reference (1) To monitor the performance of the HKMA in carrying (2) To consider recommendations and provide advice to out its functions and responsibilities and in its use of the Financial Secretary on the appointment and resources, and to formulate recommendations to the dismissal of staff at the level of Executive Director and Financial Secretary through the Exchange Fund Advisory above. Committee on (3) To keep under review the governance arrangements for (a) the remuneration and human resources policies of the HKMA and to make recommendations to the the HKMA; Financial Secretary through the Exchange Fund Advisory Committee as appropriate. (b) remuneration for HKMA staff, taking account of the Sub-Committee’s assessment of the quality and effectiveness of the HKMA’s work; and
(c) the use of resources of the HKMA, including its annual administrative budget. Page 30
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Advisory Committees
THE EXCHANGE FUND ADVISORY COMMITTEE
AUDIT SUB-COMMITTEE
Chairman
Mr Carlson TONG, SBS, JP Chairman Securities and Futures Commission
Members
Mr Philip TSAI Wing-chung, BBS, JP Mrs Angelina LEE WONG Pui-ling, SBS, JP Chairman Partner Deloitte China Woo, Kwan, Lee & Lo
Mr T. Brian STEVENSON, SBS, JP Mr Silas YANG Siu-shun, JP
Mr LAU Ming-wai, GBS, JP Ms Agnes CHAN Sui-kuen Chairman Managing Partner, Hong Kong and Macau Chinese Estates Holdings Limited Ernst & Young (from 1 August 2017) (from 12 February 2018)
Secretary Ms Carrie CHAN Page 31
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Advisory Committees
Terms of Reference (1) The objectives of the Audit Sub-Committee are as (d) reviewing the findings, recommendations or follows: criticisms of the auditors, including their annual management letter and management’s response; (a) to help Members of the Exchange Fund Advisory Committee to discharge their responsibilities for (e) reviewing the HKMA’s management procedures to ensuring the proper and smooth running of the ensure the effectiveness of internal systems of HKMA operations and management of the accounting and control, and management’s efforts Exchange Fund; to correct deficiencies discovered in audits; and
(b) to consider any matters relating to the financial (f) initiating investigations or audit reviews into any affairs of the HKMA and the internal and external activities of the HKMA which may be of concern or audit of the HKMA’s financial statements as the interest to the Sub-Committee. Sub-Committee may think necessary or desirable; (3) Authority (c) to encourage higher quality accounting and audit and provide more credible and objective financial The Sub-Committee shall be entitled to obtain any reporting of the HKMA; and information it requires from any member or employee of the HKMA, and all such members and employees (d) to consider any other matters referred to it by the shall be instructed to assist the Sub-Committee to the Exchange Fund Advisory Committee; and to report fullest extent possible. The Sub-Committee may also on all such matters to the Committee. take such independent legal or other professional advice as it considers necessary. The Sub-Committee (2) The functions of the Sub-Committee include, but are shall have no executive powers as regards its findings not restricted to, the following: and recommendations.
(a) reviewing the HKMA’s financial statements, the (4) Meetings composition and accounting principles adopted in such statements, whether these are intended to be The Sub-Committee shall meet at least twice a year. audited or published or not; The Secretary to the Exchange Fund Advisory Committee shall attend its meetings and take minutes, (b) advising on the form and content of the financial copies of which shall be circulated to the Committee. statements of the HKMA; The Chief Executive of the HKMA shall be entitled to attend the Sub-Committee’s meetings. In all other (c) examining and reviewing with both the external respects, the Sub-Committee shall decide its own and internal auditors the scope and results of their procedures. audits; Page 32
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Advisory Committees
THE EXCHANGE FUND ADVISORY COMMITTEE
CURRENCY BOARD SUB-COMMITTEE
Chairman
Mr Norman T.L. CHAN, GBS, JP The Monetary Authority
Members
Mr Eddie YUE, JP Mr Arthur YUEN, JP Deputy Chief Executive Deputy Chief Executive Hong Kong Monetary Authority Hong Kong Monetary Authority
Mr Howard LEE, JP Dr John GREENWOOD Deputy Chief Executive Group Chief Economist Hong Kong Monetary Authority Invesco Asset Management Limited
Professor Lawrence J. LAU, GBS, JP Dr David WONG Yau-kar, GBS, JP Ralph and Claire Landau Professor of Economics Managing Director The Chinese University of Hong Kong United Overseas Investments Limited
Dr PENG Wensheng Professor CHEUNG Yin-wong Global Chief Economist and Head of Research Hung Hing Ying Chair Professor of International Economics Everbright Securities Limited Department of Economics and Finance City University of Hong Kong
Professor LIN Chen Ms Diana CESAR Chair of Finance and Stelux Professor in Finance Chairperson Faculty of Business and Economics The Hong Kong Association of Banks The University of Hong Kong (from 1 January 2018)
Mr YUE Yi Chairperson The Hong Kong Association of Banks (until 31 December 2017)
Secretary Ms Carrie CHAN Page 33
HONG KONG MONETARY AUTHORITY 33
Advisory Committees
Terms of Reference (1) To ensure that the operation of the Currency Board (4) To ensure a high degree of transparency in the operation arrangements in Hong Kong is in accordance with the of the Currency Board arrangements in Hong Kong policies determined by the Financial Secretary in through the publication of relevant information on the consultation with the Exchange Fund Advisory operation of such arrangements. Committee. (5) To promote a better understanding of the Currency (2) To report to the Financial Secretary through the Exchange Board arrangements in Hong Kong. Fund Advisory Committee on the operation of the Currency Board arrangements in Hong Kong.
(3) To recommend, where appropriate, to the Financial Secretary through the Exchange Fund Advisory Committee, measures to enhance the robustness and effectiveness of the Currency Board arrangements in Hong Kong. Page 34
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Advisory Committees
THE EXCHANGE FUND ADVISORY COMMITTEE
INVESTMENT SUB-COMMITTEE
Chairman
Mr Norman T.L. CHAN, GBS, JP The Monetary Authority
Members
Mr Eddie YUE, JP Mr Benjamin HUNG Pi-cheng, BBS, JP Deputy Chief Executive Regional Chief Executive Officer, Greater China & North Asia Hong Kong Monetary Authority Chief Executive Officer, Retail Banking Standard Chartered Bank
Mrs Angelina LEE WONG Pui-ling, SBS, JP Mr T. Brian STEVENSON, SBS, JP Partner Woo, Kwan, Lee & Lo
Mr Silas YANG Siu-shun, JP Professor Lawrence J. LAU, GBS, JP Ralph and Claire Landau Professor of Economics The Chinese University of Hong Kong
Dr David WONG Yau-kar, GBS, JP Mr Nicky LO Kar-chun, SBS, JP Managing Director United Overseas Investments Limited
Dr LO Ka-shui, GBS, JP Chairman and Managing Director Great Eagle Holdings Limited (until 31 January 2018)
Secretary
Ms Carrie CHAN Page 35
HONG KONG MONETARY AUTHORITY 35
Advisory Committees
Terms of Reference (1) To monitor the investment management work of the (b) the investment policy and risk management of the HKMA. Fund;
(2) To make recommendations to the Financial Secretary, (c) the investment strategy for the Fund; and through the Exchange Fund Advisory Committee, on (d) any other matters referred to the Sub-Committee in (a) the investment benchmark for the Exchange Fund; connection with the investment management of the Exchange Fund. Page 36
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Advisory Committees
THE EXCHANGE FUND ADVISORY COMMITTEE
FINANCIAL INFRASTRUCTURE AND MARKET DEVELOPMENT SUB-COMMITTEE
Chairman
Mr Norman T.L. CHAN, GBS, JP The Monetary Authority
Members
Mr Eddie YUE, JP Mr Arthur YUEN, JP Deputy Chief Executive Deputy Chief Executive Hong Kong Monetary Authority Hong Kong Monetary Authority (from 1 August 2017)
Mr Howard LEE, JP Mr Jack CHEUNG Tai-keung Deputy Chief Executive Chief Executive Officer Hong Kong Monetary Authority Treasury Markets Association
Mrs Ayesha MACPHERSON LAU, JP Mr Vincent CHUI Yik-chiu Managing Partner, Hong Kong Chief Executive KPMG Morgan Stanley Asia International Limited
Ms DING Chen Mr Harold WONG Tsu-hing Chief Executive Officer Managing Director and Chief Executive CSOP Asset Management Limited Dah Sing Bank, Limited
Mr Joseph NGAI Professor Kalok CHAN Senior Partner and Managing Partner, Greater China Dean, CUHK Business School McKinsey & Company, Inc. Hong Kong Wei Lun Professor of Finance The Chinese University of Hong Kong
Ms Jacqueline LEUNG The Honourable Bernard Charnwut CHAN, GBS, JP President & Managing Director President Leighton Textiles Co., Ltd. Asia Financial Holdings Limited Leighton Investments Ltd. (from 1 August 2017)
Mr Ericson CHAN Mr Leong CHEUNG Chief Executive Officer Executive Director, Charities and Community Ping An Technology The Hong Kong Jockey Club (from 1 August 2017) (from 1 August 2017)
Ms Mary HUEN Wai-yi Mrs Ann KUNG YEUNG Yun-chi Executive Director and Chief Executive Officer Deputy Chief Executive Standard Chartered Bank (Hong Kong) Limited Bank of China (Hong Kong) Limited (from 1 August 2017) (from 1 August 2017)
Ms Miranda KWOK Pui-fong Ms Amy LO Choi-wan President and Executive Director Group Managing Director China Construction Bank (Asia) Country Head & Chief Executive, Hong Kong (from 1 August 2017) UBS (from 1 August 2017) Page 37
HONG KONG MONETARY AUTHORITY 37
Advisory Committees
Ms Helen WONG Pik-kuen, JP Ms Anita FUNG Yuen-mei, BBS, JP Chief Executive, Greater China Director The Hongkong and Shanghai Banking Corporation Limited Hong Kong Exchanges and Clearing Limited (from 1 August 2017) (until 30 June 2017)
Mr Lawrence LAM Yuk-kun Mr LAU Ming-wai, GBS, JP Senior Advisor, Greater China Chairman National Australia Bank Chinese Estates Holdings Limited (until 30 June 2017) (until 30 June 2017)
Mr TSE Kam-keung Chief Executive Officer Tradelink Electronic Commerce Limited (until 30 June 2017)
Secretary
Ms Carrie CHAN
Terms of Reference (1) To recommend to the Financial Secretary through the (c) measures to foster the development of other Exchange Fund Advisory Committee measures to enabling factors that would help enhance the further develop Hong Kong’s status as an international competitiveness of Hong Kong’s financial services; financial centre and strengthen the international and competitiveness of Hong Kong’s financial services, including – (d) initiatives for the HKMA, in discharging its responsibilities for maintaining the stability and (a) measures to promote the development, operational integrity of the monetary and financial systems of excellence, safety and efficiency of the financial Hong Kong, to promote the development of the infrastructure in Hong Kong, particularly payment financial infrastructure and financial markets in Hong and settlement arrangements; Kong under (a) to (c) above.
(b) measures to promote the development of Hong (2) To monitor the work of the HKMA in relation to the initiatives identified in (1) above. Kong as an offshore renminbi centre; Page 38
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Advisory Committees
THE BANKING ADVISORY COMMITTEE
Chairman
The Honourable Paul CHAN Mo-po, GBM, GBS, MH, JP The Honourable John TSANG Chun-wah, GBM, JP The Financial Secretary The Financial Secretary (from 16 January 2017) (until 15 January 2017)
Ex Officio Member
Mr Norman T.L. CHAN, GBS, JP The Monetary Authority
Members The Honourable James H. LAU Jr., JP Mr GAO Yingxin Secretary for Financial Services and the Treasury Vice Chairman and Chief Executive (from 1 July 2017) Bank of China (Hong Kong) Limited Representing Bank of China (Hong Kong) Limited (from 1 January 2018)
Ms Diana CESAR Ms Mary HUEN Wai-yee Group General Manager Executive Director and Chief Executive Officer Chief Executive, Hong Kong Standard Chartered Bank (Hong Kong) Limited The Hongkong and Shanghai Banking Corporation Limited Representing Standard Chartered Bank (Hong Kong) Limited Representing The Hongkong and Shanghai Banking Corporation Limited (from 1 March 2017)
Mr Carlson TONG, SBS, JP The Honourable CHAN Chun-ying Chairman Member Securities and Futures Commission Legislative Council Representing Securities and Futures Commission
Mr Peter LO Chi-wai Ms KWANG Kam-shing Chief Country Officer, Hong Kong Managing Director Deutsche Bank AG Senior Country Officer, Hong Kong JPMorgan Chase Bank, N.A.
Mr Yusuke ONO Professor the Honourable K.C. CHAN, GBS, JP General Manager Secretary for Financial Services and the Treasury Sumitomo Mitsui Banking Corporation (until 30 June 2017) Hong Kong Branch (from 15 August 2017)
Mr YUE Yi Ms May TAN Siew-boi Vice Chairman and Chief Executive Chief Executive Officer Bank of China (Hong Kong) Limited Standard Chartered Bank (Hong Kong) Limited Representing Bank of China (Hong Kong) Limited Representing Standard Chartered Bank (Hong Kong) Limited (until 31 December 2017) (until 28 February 2017)
Mr Toshihide MOTOSHITA Executive Officer Regional Head for Hong Kong and General Manager The Bank of Tokyo-Mitsubishi UFJ, Limited Hong Kong Branch (until 26 May 2017)
Secretary Ms Jasmin FUNG Page 39
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Advisory Committees
THE DEPOSIT-TAKING COMPANIES ADVISORY COMMITTEE
Chairman
The Honourable Paul CHAN Mo-po, GBM, GBS, MH, JP The Honourable John TSANG Chun-wah, GBM, JP The Financial Secretary The Financial Secretary (from 16 January 2017) (until 15 January 2017)
Ex Officio Member
Mr Norman T.L. CHAN, GBS, JP The Monetary Authority
Members The Honourable James H. LAU Jr., JP Mr LEE Huat-oon Secretary for Financial Services and the Treasury Acting Chairman (from 1 July 2017) The DTC Association (The Hong Kong Association of Restricted Licence Banks and Deposit-taking Companies) Representing The DTC Association
Ms Gilly WONG Fung-han Dr the Honourable Elizabeth QUAT, BBS, JP Chief Executive Member Consumer Council Legislative Council Representing the Consumer Council
Mr Vincent CHUI Yik-chiu Mr Andy POON Shiu-chung Chief Executive Chief Executive Morgan Stanley Asia International Limited Scotiabank (Hong Kong) Limited
Mr Jack CHAN Hoi Professor the Honourable K.C. CHAN, GBS, JP Managing Director, Financial Services Secretary for Financial Services and the Treasury Greater China (until 30 June 2017) EY
Secretary Ms Jasmin FUNG