Joseph Hu, Standard and Poor's Country Head for China, addresses a press conference during the 39th Asian Development Bank's Annual Meeting in Hyderabad£¬India, May 6, 2006. The ADB opened its 39th Annual Meeting of the Board of Governors Friday to overview its performance in the past year and discuss new strategies for Asia-Pacific development, focusing on poverty reduction. (Xinhua Photo)

    HYDERABAD, India, May 6 (Xinhua) -- Financial integration would help facilitate the increasing transactional needs arising from more intra-regional economic and trade activities in Asia, said an official from Hong Kong here Saturday.

    This would also enhance the region's resilience against volatile international capital flows, said Peter ST Pang, head of the Hong Kong delegation at the 39th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB).

    He suggested five areas of financial integration.

    The first area is the linking of the financial infrastructure to facilitate the safe and efficient flow of funds between jurisdictions arising from many trade, investment and other economic transactions.

    The second area is the relaxation of restrictions on access by foreign financial intermediaries to domestic financial markets.

    The third is the harmonization of financial standards within the region.

    The fourth area is the cooperation between jurisdictions in developing domestic financial systems.

    And the fifth area is the promotion of great cross-border flows.

    He said the five areas of financial integration would help enhance the efficiency in financial intermediation and promote greater financial stability of the region, thus, contributing to more sustainable growth.

    Pang said the Asian Bond Market Imitative under the Association of Southeast Asian Nations (ASEAN) and China, Japan and South Korea (10+3) is a good example of financial integration in the region. Enditem