By staff reporter Wang Duan

(Caijing.com.cn) Hong Kong Monetary Authority chief executive Joseph Yam is retiring after 16 years as head of the territory's de facto central bank, the Hong Kong government said on its website on May 19.

The 62-year-old Yam's retirement will take effect on October 1. Last year he said he would likely retire in September2009.

"I am very pleased that, with the support of the various Financial Secretaries over the years, and of the community, my colleagues and I have been able to maintain and develop Hong Kong's monetary and financial systems, which have proved their robustness and continue to provide a firm basis for stability in the future," Yam said in a statement.

Yam is the world's longest-serving central bank chief since joining the Authority in 1993. He helped set up Hong Kong's linked exchange rate system and stabilized the stock market during 1997's Asian financial crisis.

"He has contributed in no small measure to Hong Kong's financial stability and has tendered valuable advice to successive financial secretaries, including myself," said Hong Kong's Financial Secretary John Tsang.

Tsang added that Yam's departure will not affect the city's monetary policies or the stability of its financial system.

In the statement, Hong Kong's Chief Executive Donald Tsang also expressed his gratitude for Yam's contributions.

"Mr. Yam has been my comrade in arms for years. He has been working wholeheartedly for Hong Kong and has made tremendous contributions," Tsang said.

Tsang said he hopes Yam would continue to serve the city and China in other positions after retirement.

Caijing earlier reported that Yam might serve as consultant to China's central bank.
The government said it is in the final stages of choosing a replacement for Yam.

Norman Chan is seen as a likely successor. Chan has worked as the deputy chief of HKMA and is currently the director of the Chief Executive's Office. Chan was also a vice president with Standard Chartered Asia.

Full article in Chinese: http://www.caijing.com.cn/2009-05-19/110168547.html