The passage of insurance-linked securities (ILS) legislation and now the successful issuance of a second catastrophe bond in the country, helps Hong Kong as it continues on its mission to further diversify its financial market and services sectors, according to Financial Secretary Paul Chan.

With the recent completion of Hong Kong headquartered reinsurance firm Peak Re’s first cat bond, which was domiciled in the country, traction continues and the Government sees an opportunity to help broaden out Hong Kong’s financial services base with ILS.

Financial Secretary Chan commented that, “In recent years, the risks brought by global climate change to human social and economic activities have been increasing, and various financial instruments and alternative investments that can effectively transfer related risks are gradually being valued by the market.”