A high-level delegation of Hong Kong financiers held a seminar yesterday to promote the Chinese special economic zone as a gateway to Shariah-compliant fund-raising and investment in China.

Despite scepticism about a role in Islamic finance for Hong Kong, local market players were quick to develop Shariah-compliant products, deputy CEO of the Hong Kong Monetary Authority, Eddie Yue, was quoted as saying in a Khaleej Times report.

The first Islamic fund introduced by a local bank was approved last year and is an index-tracking fund for the Dow Jones Islamic Market China/Hong Kong Index. In December the Hong Kong Mortgage Corporation signed a joint venture agreement with Malaysia's Cagamas Berhad to develop Islamic mortgages.

Nasser H Saidi, chief economist of the Dubai International Financial Centre Authority, said Hong Kong could also play role in developing "straightforward or convertible sukuk" for sale to Chinese savers to fund projects in the Middle East.