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Unformatted text preview: - the Hong Kong foreign exchange market Turnover of the Foreign Exchange and Derivatives Market in Hong Kong (HKMA Quarterly Bulletin, 9/2010): http://www.info.gov.hk/hkma/eng/public/qb201009/fa1.pdf REASONS FOR UNDERDEVELOPMENT OF HK BOND MARKET (1) Lack of a benchmark in the form of risk-free government securities. (2) Preference of retail investors for risk and rewards of equity markets. (3) Commercial bank dominance of financial sector relative to securities firms. (4) Absence of bond rating. (5) Lack of a government mandated employee retirement or provident fund. (6) Unfavorable tax treatment for corporate bonds. (7) Non-EF papers no longer eligible for discounting at Discount Window. (8) Low secondary market liquidity....
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- Winter '11
- Finance, Hong Kong Bond Market