Hong Kong: With the tax framework for sukuk in place, Hong Kong’s financial platform is ready for sukuk issuance, according to a top official at the Hong Kong Monetary Authority.
“We highly welcome local and overseas entities to make use of Hong Kong’s platform to issue sukuk,” Peter Pang, Deputy Chief Executive of the HKMA, revealed.
“To play a lead-off role for this market, we are working closely with the HKSAR Government to prepare for the inaugural issuance of Government sukuk under the Government Bond Programme to promote the further development of the sukuk market in Hong Kong.” Pang added, “We very much appreciate the close partnership we have established with Malaysia in developing Islamic finance and look forward to more co-operation opportunities in the future,” Peter added.
The Hong Kong Monetary Authority (HKMA) and Bank Negara Malaysia (Central Bank of Malaysia) jointly organised an Islamic finance conference in Hong Kong to raise the level of interest and appreciation on sukuk as a viable financing and investment instrument amongst business and financial community from Hong Kong and China.
The half-day conference saw regulators and market leaders in the Islamic finance field from Hong Kong and Malaysia discussed and deliberated on a wide range of issues related to sukuk, from the latest trends in the global sukuk market to the business opportunity for Islamic finance in Hong Kong, the practical issues in structuring sukuk and its investment appetite.
“This inaugural conference is set to mark a significant step to enhance collaboration and deepen financial linkages in Islamic finance between Malaysia and Hong Kong. We look forward to sharing our Islamic finance marketplace with Hong Kong in terms of expertise in structuring, managing and distribution of sukuk as well as providing advice on legal and Shariah matters,” Muhammad Ibrahim, Deputy Governor of Bank Negara Malaysia, said.
Muhammad emphasized the importance of adopting international standards and best practices by new markets, with proper governance framework to facilitate execution of Islamic finance transactions and instill investors’ confidence in the industry. Potential areas of collaboration will also include dual listing of sukuk; leveraging on Malaysia’s Shariah governance framework and arbitration platform and developing human capital in Islamic finance.
The conference was attended by around 200 representatives from policy-makers, regulatory authorities, corporates, financial institutions, fund management firms, law firms and other stakeholders from Hong Kong, Malaysia and other economies.
The conference was supported by the Treasury Markets Association. This event followed the first meeting of the private-sector led Joint Forum on Islamic Finance between Hong Kong and Malaysia held in December 2013, the next meeting of which will be held in Kuala Lumpur in the second half of this year.