High-level conference in Hong Kong highlights challenges to central banks

Agustin Carstens, general manager of the Bank for International Settlements (BIS), delivers a speech at a high-level conference co-organized by the Hong Kong Monetary Authority (HKMA) and the BIS in Hong Kong, south China, Nov. 28, 2023. (Xinhua/Chen Duo)

A high-level conference co-organized by the Hong Kong Monetary Authority (HKMA) and the Bank for International Settlements (BIS) was concluded Tuesday in Hong Kong, with more than 300 participants including central bank governors.

Speakers discussed and shared their insights into issues including the key challenges central banks and policymakers are facing, such as persistent inflation pressures and the "higher-for-longer" interest rate environment, the future of the monetary system amid financial innovation, lessons learnt from financial crises in the past, as well as structural changes shaping the economic landscape.

In his speech at the meeting, People's Bank of China (PBOC) Governor Pan Gongsheng said Hong Kong's standing as an international financial center will be further enhanced.

He vowed to continue to create an enabling environment for RMB business in Hong Kong, and support Hong Kong's role as an international asset management center and risk management center and its goal to become a fintech and green finance hub in the Asia-Pacific region.

Paul Chan, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government, said the HKSAR government puts financial stability and security as one of its top priorities.

Chan said that over the years, Hong Kong has built up a robust regulatory framework and strong buffers, establishing a high-level "cross-market, co-ordinated, and round-the-clock" monitoring mechanism over all sectors of the financial market.

Agustin Carstens, general manager of the BIS, said the relative success of many Asian central banks in tackling inflation and financial stability risks in the region reflects decades of work in building and strengthening macro financial stability frameworks.

Leaders of financial institutions shared their perspectives on the future of finance in Asia at the meeting.

Attendees of the event also included chief executive officers of global, regional and local financial institutions, and leading experts from Hong Kong and other parts of Asia.