The Global Financial Crisis and the Future of Financial Regulation in Hong Kong

Abstract

In this study, a team of researchers from the University of Hong Kong's Asian Institute of International Financial Law (AIIFL) discuss the current structure of financial regulation in Hong Kong and its performance in the global financial crisis, focusing on major local issues such as structured financial products sold to retail investors called 'Minibonds'. Based on this evaluation, the study recommends a range of regulatory reforms in Hong Kong in order to address existing weaknesses and to enhance Hong Kong's competitiveness as an international financial center.

The study concludes that in addition to a range of changes necessary to lessen the likelihood of similar problems in future, that Hong Kong undertake a major reform of its regulatory structure along functional/Twin Peaks lines in order to enhance both financial stability and its international role.