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HK IA and SASAC co-host forum to discuss the integration of the real economy & the financial sector and risk management



The Insurance Authority (IA) and the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) co-hosted a two-day forum in Hong Kong on 26 and 27 February 2019. The event aimed to provide a platform for visiting senior executives of Central State-owned Enterprises (SOEs) to share experience on enabling the financial sector to serve real economic development, as well as on risk prevention and risk management, and to promote Hong Kong’s role as a risk management centre for the Belt and Road Initiative.


The forum was attended by over 70 participants, including more than 40 officials from the SASAC, the Hong Kong and Macao Affairs Office of the State Council, and the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region, together with senior executives from various Central SOEs.

In his opening address, Mr Clement Cheung, Chief Executive Officer of the IA, said, “The forum aims to promote sharing through case studies amongst SASAC officials, specialists in captive insurance, and senior executives of Central SOEs on how they can use Hong Kong as a platform for risk management, and to explore how to promote Hong Kong as the ideal domicile for captive insurance. The topics discussed in the forum include how insurance can support the real economy through risk transfer, and how captive insurance companies can exemplify the successful integration between the real economy and the financial sector in supporting risk management of the parents of Central SOEs.”

Another honourable guest, Mr Li Bing, Director General of the Bureau of Capital Operation and Returns Management of the SASAC, said in his speech, “Hong Kong is an important international financial centre and has played a substantial role in the reform, opening-up and modernization of the country. With its unique geographical advantage, flourishing financial markets, advanced knowledge in risk management, and preferential tax policies, Hong Kong has been crucial to providing favourable conditions for Central SOEs to invest offshore and implement the Belt and Road Initiative. Central SOEs can fully utilize Hong Kong’s advantages to connect with international markets and services, to effectively prevent and resolve risks, and to leverage the positive aspects of the financial sector in promoting the development of the real economy.”

A strong line-up of speakers were invited to the forum, including representatives from Hong Kong’s banking sector, Mainland enterprises in Hong Kong, and the insurance and risk management sectors. Through case studies and discussion sessions, they showed how the financial industry could serve the real economy for mutual benefit from the perspective of Central SOEs. For example, Central SOEs can formulate risk management solutions to counter overseas investment risks along the Belt and Road by combining conventional corporate risk management models with expertise on industry-specific risks. They can also set up captives or arrange reinsurance to improve their risk management mechanisms.

The IA also had a meeting with visiting SASAC officials, and a consensus was reached on various issues, including the establishment of a regular liaison mechanism, enhanced promotion to Central SOEs on the advantages of setting up captives in Hong Kong, and co-operation on designated research projects. The two parties will continue to maintain close dialogue on topics of common concern. The IA expects more exchanges with the SASAC and Central SOEs in the future, which will help pave the way for Hong Kong’s insurance industry to provide quality professional services for their overseas investment projects for the prevention and resolution of major risks.

To help enterprises from the Mainland, Hong Kong and overseas that participate in projects and other commercial activities related to the Belt and Road Initiative identify and create feasible risk management solutions, the IA launched the Belt and Road Insurance Exchange and Facilitation (BRIEF) platform at the end of 2018, with membership spanning insurers, reinsurers, insurance brokers and other professional service providers.

Source: HK Insurance Authority  2019-02-28