Beijing man's proactive approach to finance

Qi Bin, deputy director of the central government's liaison office in Hong Kong, yesterday handed in the first piece of homework since he was appointed to the post in mid-November last year.

No wonder high hopes have been attached to the man known to be one of the country's most brilliant minds.

In light of the speech he gave at the financial forum, the former Wall Street investment banker is living up to the high standards expected of him.

Qi made a number of points at the forum that was also attended by Financial Secretary Paul Chan Mo-po and Securities and Futures Commission chairman Kelvin Wong Tin-yau.

Some of the points he made were especially notable. In particular, he called for a road map and timetable to enhance the city's capital market as this would help Hong Kong demonstrate to the world its commitment and win trust and confidence in the SAR.

Broadly speaking, according to Qi, the city needs to do more to enhance market regulation, improve transaction costs and strengthen corporate governance despite the economic growth recorded in the first nine months of the fiscal year.

Qi arrived at these observations after carefully studying the local situation, but it would have been a lot better if the central liaison office's deputy director had also elaborated on the blanks that he is asking the SAR officials to fill.

Each of the areas of concern as raised is important - but it is a matter of easier said than done.

It is hoped that Qi will follow up this piece of homework with more insights.

It is commendable that the former China Investment Corporation strategist was able to come to his views less than two months after taking up his position in the Hong Kong office, given that some in the audience have been in charge for a good while.

It was not the first time someone from Beijing called on SAR officials to identify inadequacies.

These statements were usually made by more senior leaders directly rather than someone at a much junior level.

Politically, Qi may have overstepped the protocol, but a sense of authority was evident in the speech.

As I mentioned last November, Qi's appointment was eye-catching.

The central liaison office has a number of deputy directors but Qi is the only one directly from the financial branch of the central government.

Commanding a reservoir of market regulatory and sovereign wealth fund management experience, he quickly identified several areas that Hong Kong needs to upgrade if it is expected to continue to further its success.

Many of the local and international market watchers would agree that market regulation, transaction cost and corporate governance are all important to the investment environment.

While these are the headlines, where is the substance? It is a pity that these were missing yesterday.

So how can these be upgraded and enhanced? That is the homework for Chan and Wong to complete.

If the city is not going to see a road map and timetable in the upcoming budget, will it be able to see them in the next few months before the Legislative Council goes into summer recess - bearing in mind that it has taken Qi less than two months to tell the city where its shortfalls lie.