COMPETITION POLICY STATEMENT

Hong Kong, China


We have promulgated our Statement on Competition Policy in May 1998. The objective of our competition policy is to enhance economic efficiency and free flow of trade, thereby also benefiting consumer welfare. We are committed to competition as a means to achieving the said objective, and not as an end in itself.

We consider competition is best nurtured and sustained by allowing the free play of market forces and keeping intervention to the minimum. We will not interfere with market forces simply on the basis of the number of operators, scale of operations, or normal commercial constraints faced by new entrants. We will take action only when market imperfections or distortions limit market accessibility or market contestability, and impair economic efficiency or free trade, to the detriment of the overall interest of Hong Kong. We will strike the right balance between competition policy considerations on the one hand, and other policy considerations such as prudential supervision, service reliability, social service commitments, safety, etc., on the other hand.