Securitisation - taking publicly own assets with a revenue stream and selling them to a buyer who then uses the revenue stream to pay off its debt - is a good idea. As well as raising money for the government, it should, in theory, encourage better management of the assets by those who buy them, and in the process, encourage a broadening and deepening of financial markets.

But can it be made to work in Hong Kong? While the government has plenty of assets with revenue streams - housing, shops, tunnels and car parks, to name just a few - there are many obstacles to bundling them up and selling them off, from legislation capping rentals and the interests of current users to ensuring that management standards are maintained or raised.

8.30	Registration and welcome refreshments
9.00	Welcome Remarks • Professor Richard Wong, Dean, Faculty of Business and Economics, The University of Hong Kong
9.10	Presentation - Securitisation: The Way Forward for Hong Kong • Vinod Kothari, internationally recognised author and expert on securitisation, asset-based finance, credit derivatives and derivatives accounting, outlines global securitisation experiences and their relevance to Hong Kong. Mr Kothari is the Executive Director of Asian Securitization Forum as well as the Director of Association of Leasing and Financial Services Cos., a body of over 500 top leasing companies in India. He is also a part of an Asian Development Bank consulting group to advise the Government of India on reforms in secured lending law. Click here for presentation
9.40	Panel Discussion Session 1 - Why Securitisation? • What are the advantages of securitization over privatization and other similar forms of raising money for the government by putting publicly owned assets to work? • Can Hong Kong realistically expect to raise a considerable amount of money by securitizing Government assets such as revenues from car parks or tunnels? • Given that Hong Kong already has a large surplus of capitals, does securitization meet any real need? • Would securitizing publicly owned assets lead to greater efficiency in their management and operations? • Is the lack of a securitization sector hindered by the lack of a broader debt market in Hong Kong? • What wider economic benefits Hong Kong could expect to gain from a large-scale securitization programme? • Could the development of securitization and other similar debt instruments lessen the risk of contagion and instability in the event of a financial crisis? • Could Hong Kong establish itself as a regional securitization centre? Moderators: • Louis Beckerling, Banking Correspondent, South China Morning Post Panelists: • Vinod Kothari, Vinod Kothari Consultant P. Ltd • Raymond Chen, Director, Asia Pacific (China & Hong Kong), Global Securitized Markets, Citigroup Global Markets • Tommy Yuen, Principal Assistant Secretary for Financial Services and the Treasury (Treasury) (Investment), Financial Services and the Treasury Bureau, The Government of HKSAR • Jerome Cheng, Vice President / Senior Credit Officer, Moody¡¦s Investors Service • Leland Sun, Managing Director, Pan Asian Mortgage Co Ltd • Dr Maurice Tse, Associate Professor, School of Business and Finance, The University of Hong Kong Transcripts for downloading
10.30	Morning tea/coffee
10.45	Panel Discussion Session 2 - Securitisation in Hong Kong • What policy measures could the Government adopt to best facilitate securitization? • Are there ay legal, regulatory or other barriers blocking the development of a securitization sector in Hong Kong? • Is there any need for greater market transparency to make securitization viable? • Who will be the winners from a large-scale securitization programme? What can be done to encourage their participation in the development of such a programme? • Who will be the losers? How powerful are they and what objections will they make? • Given that the development of a securitization industry would make capital cheaper, why isn¡¦t the private sector keener on securitization? • Is there a need for regional co-operation to make securitization viable in Hong Kong? How much progress are the current APEC teams set up to examine capital market development in the region making? • Are there any lessons which can be learned from the experiences of other countries or regions in the development of securitization industry? Transcripts for downloading
11.50	Closing Remarks
12.00	End of Seminar