QINGDAO, June 21 (Xinhuanet) -- Asian foreign ministers, who are here attending the Third Foreign Ministers' Meeting of Asia Cooperation Dialogue, have attached great importance to the establishment of a regional bond market, saying it can help maintain financial stability in the region.

    At a high level seminar held on the sideline of the ACD ForeignMinisters' Meeting Monday, Thai Foreign Minister Surakiat Sathirathai said the development of a regional bond market was a key instrument to ensure that Asian wealth would be invested more in Asia for common Asian prosperity so as to help prevent a repeatof the 1997 Asian financial crisis.

    On June 2, 2003, the Executives' Meeting of East Asia-Pacific Central Banks (EMEAP) launched the Asia Bond Fund, with an initialsize of about 1 billion US dollars, to invest in a basket of US dollar denominated bonds issued by major Asian economies.

    The Asia Bond Fund laid a cornerstone for the fostering of the Asian Bond Market, part of an integral and resilient regional financial system to enhance Asia's strength in resisting economic and financial crises.

    Addressing the opening ceremony of the ACD High Level Seminar on Asian Cooperation and Development, Surakiat also suggested thaton top of the Asian Bond Fund, a second Fund denominated in local currency be established to best serve Asian financial markets.

    Experts have said investment in US dollar denomination may encourage currency mismatches which is a major reason for the outbreak of the 1997 Asian financial crisis. A study is underway on the feasibility of the Asian currency denominated bond market.

    Also at the seminar, Pakistani Foreign Minister Khurshid Kasurialso stressed the importance of setting up an Asian Bond Market, saying Pakistan has supported the setup of an Asian Bond Market and can not overemphasize the importance of movement towards the creation of such a market, a key element in regional financial cooperation.

    The seminar, presided over by Secretary General of the Bo'ao Forum for Asia Long Yongtu, was attended by nearly 100 officials, experts and scholars from Asian countries. Kazakhstan's Foreign Minister Kasymzhomart Tokayev and ASEAN Secretary General Ong KengYong also addressed the opening ceremony.

    In his speech, Long said the seminar will work out a proposal for the ACD Foreign Ministers' Meeting Tuesday, which will highlight regional energy security and cooperation, regional integration and agricultural cooperation. Enditem