| Date
| Context
| Summary of development
| Action
|
|---|
|
31.10.97
| FA
| The Panel discussed with the Administration on measures to deal with the financial crisis surrounding the Hong Kong dollar and the Hong Kong stock market. [Paper]
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26.11.97
| CM
| The Council passed a motion moved by Hon Ambrose LAU urging the Government to expeditiously review the operating mechanism of the local financial market, including the chain relationship between the stock, foreign exchange and index futures markets, and in particular to properly regulate stock lending and short selling of index futures, with a view to strengthening the Government's responsiveness to unforeseeable speculative activities and financial crisis. [Hansard "page 102"]
|
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|
7.1.98
| CQ
| Hon CHOY So-yuk raised a question on measures adopted to defend the linked exchange rate system. [Hansard "page 103"]
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|
18.2.98
| COU
| In the 1998-99 Budget, the Financial Secretary (FS) gave reports on the crucial issues of the maintenance of the linked exchange rate system and banking and market regulation. [Budget "paragraphs 11 to 48"]
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|
14.8.98
| PRESS
| The Government announced that it had started to take action in the securities market to thwart manipulation, with the full intention of releasing to the public the reasons and details of its actions when the market situation stabilized. [Statement by the Financial Secretary (FS)]
[Transcripts of FS's press briefing]
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|
5.9.98
| PRESS
| The Hong Kong Monetary Authority (HKMA) announced measures to strengthen the currency board arrangements in Hong Kong in order to strengthen the institutions and order in the market, and to reduce the chances of Hong Kong coming under further attacks and the need for intervention. These include the seven measures aiming at strengthening the linked exchange rate and a 30-point package to tighten the regulation of the stocks and futures markets and raising transparency. [Press release]
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|
7.9.98
| FA
| The Panel discussed with the Administration on actions taken by the Government in the currency, stock and futures markets. At the meeting, FS referred to the announcement made by HKMA on 5.9.98 about the technical measures to strengthen the currency board arrangements in Hong Kong, and reiterated the Government's commitment to the maintenance of the linked exchange rate system. [Minutes]
|
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|
9.9.98
| CM
| The Council passed a motion moved by Hon Bernard CHAN urging the Government to adopt strategic and effective measures to deter further speculative attacks on the Hong Kong currency. [Hansard]
|
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|
7.11.98
| FA
| The Panel discussed with the Administration on the mechanism for defending the linked exchange rate system, and met with market practitioners and academics on the subject. [Minutes]
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14.11.98
| FA
| The Panel continued the discussion with the Administration on the mechanism for defending the linked exchange rate system, and met with academics and study group on the subject. [Minutes]
|
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|
7.12.98
| FA
| The Panel discussed the Administration's response to views of market practitioners and academics on the mechanism for defending the linked exchange rate system. [Paper]
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|
17.12.98
| FA
| The Panel discussed HKMA's response to views of market practitioners and academics on the mechanism for defending the linked exchange rate system. [Paper]
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|
4.6.01
| FA
| At the briefing by FS on Hong Kong's latest economic situation, members discussed with the Administration on the linked exchange rate system. [Minutes "page 10"]
|
|
| 7.11.01
| CQ
| Hon Emily LAU raised a question on the review of linked exchange rate system. [Hansard "page 84"]
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14.3.02
| FA
| The Panel was briefed on the background and process of research on "Practices of overseas jurisdictions in building up or maintaining their fiscal reserves" conducted by the Research and Library Services Division (RLSD). [Minutes] [Research report]
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|
19.7.02 and 20.9.02
| FA
| At the meeting on 19.7.02, the Panel decided that RLSD should conduct a research study on the linked exchange rate system. A draft research outline was circulated to members on 19.9.02.
At the meeting on 20.9.02, members noted that the research outline of the proposed research study had attracted wide press coverage and there had been speculations in the market about the implications of the proposed research. With appreciation of the sensitivity of the issue and its potential adverse impact on the stability of Hong Kong's monetary system, members supported Dr Hon Eric LI's motion that the proposed research should be shelved. [Minutes]
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|
5/05 | PRESS
| HKMA introduced the following three refinements to the operation of the Linked Exchange Rate system with effect from 18.5.05:
| (a) | The introduction with immediate effect of a strong-side Convertibility Undertakings (CU) by HKMA to buy US dollars from licensed banks at 7.75;
| | (b) | The shifting of the existing weak-side CU by HKMA to sell US dollars to licensed banks from 7.80 to 7.85, so as to achieve symmetry around the Linked Rate of 7.80. This shift will be achieved in a gradual manner of over five weeks by moving the exchange rate of the weak-side CU by 100 pips on every Monday starting with 7.81 on 23 May 2005 until it reached 7.85 on 20 June 2005; and
| | (c) | Within the zone defined by the levels of the CUs (the Convertibility Zone), HKMA may choose to conduct market operations consistent with Currency Board principles. These market operations shall be aimed at promoting the smooth functioning of the Linked Exchange Rate system, for example, by removing any market anomalies that may arise from time to time. |
[Letter from HKMA with a press release]
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| 4.7.05
| FA
| HKMA briefed the Panel on the three refinements to the operation of the Linked Exchange Rate system. Members noted that the refinements aimed at removing uncertainties about the extent to which the exchange rate might strengthen under the Linked Exchange Rate system and promoting the smooth functioning of the money and foreign exchange markets in accordance with Currency Board arrangements. [Paper]
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| 4.11.09
| CQ
| Hon Mrs Regina IP LAU Suk-yee raised a question on linked exchange rate system. [Hansard "page 102"]
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