HKMA strengthens the peg
Article Abstract:
The Hong Kong Monetary Authority (HKMA) has launched 7 measures to strengthen Hong Kong dollar peg rate and reduce volatility of interest rates as result of speculation. The 7 measures include 1) Banks can convert HK dollars to U.S dollars at fixed exchange rate of HK$7.75 to US$1. 2) Cancel bid rate for the Liquidity Adjustment Facilities. 3) Set up a new discount window where banks can borrow money at a basic rate decided by the HKMA. 4) Borrowers of the repo of Exchange Fund Paper will not face penalty interest rates. 5) Issue new Exchange Fund paper only when there is an inflow of funds. 6) License banks will face a scheduled of discounts rates for different holding of Exchange Fund paper. 7) Impose restrictions on repeated borrowing of repo transactions other than Exchange Fund Paper. Under the measures, speculators will need to purchase large amount of HK dollars in order to manipulate interest rates. The HKMA also said it would not adopt foreign exchange control and would reduce intervention if stock market was not found of being manipulated by speculators. *
Comment:
Hong K: HKMA launches 7 measures to strengthen country's dollar peg rate & to reduce volatility of interest rates
Publication Name: HK Standard
Subject: Business, international
ISSN:
Year: 1998
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sfc can take hkma to court over shares
Article Abstract:
The Securities and Futures Commission claims that the government should disclose its share holdings in listed companies when over 10% share holdings under law. However,the Hong Kong Monetary Authority said the regulation would not apply to the government. According to the Interpretation and General Clauses Ordinance, no law applies to the government. Some analysts said the government's disclosure would enhance transparency of the stock market and imply the government taking more concern to the public. *
Comment:
Hong K: Securities & Futures Commission claims that govt should disclose share holdings in listed cos when over 10% under law
Publication Name: HK Standard
Subject: Business, international
ISSN:
Year: 1998
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Move to ease liquidity woes
Article Abstract:
The Hong Kong Monetary Authority will disclose its two-day forecast for the level of change in the aggregate balance attributable to the authority's foreign exchange transactions involving Hong Kong dollar on a new electronic page of the widely-used Reuters financial service. The new measure, effective from 11 June, increases transparency in its foreign exchange transaction in order to minimise sharp rises in interest rates arising from tight liquidity in the financial market. *
Comment:
Hong K: Monetary Auth introduces new measure, effective 6/11/98, that increases transparency in foreign exchange transaction
Publication Name: HK Standard
Subject: Business, international
ISSN:
Year: 1998
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