Hong Kong has no plans to control the flow of capital
The Hong Kong authorities do not plan to exercise control over the movement of capital over national security law, said the financial Secretary of the government of Hong Kong Paul Chan.
The deputies of vsekitajsky meeting of national representatives adopted on may 28, adopted the "Decision on the establishment and improvement of the legal system and enforcement mechanisms to ensure national security in the special administrative region of Hong Kong." The resolution delegates to the standing Committee of the national people's Congress drafting bill on national security specially for Hong Kong. The newspaper South China Morning Post, citing an informed source reported that the NPC the PC will need about two weeks to make the law, this means that it can enter into force in August. The bill has caused concern that Hong Kong may lose a high degree of autonomy from the Central government of China.
"The market concern two aspects. First, we are talking about the effect of the law on freedom of access to capital and the functioning of exchange rates, as well as the future status of Hong Kong as an international financial centre. I can confidently say that none of these aspects has not suffered", - wrote in his blog, Paul Chan.
He stressed that Hong Kong is not applies a policy of exchange control, the Hong Kong dollar is freely convertible.
With regard to the exchange rate mechanism, Paul Chan recalled that this mechanism, which operates subject to the availability of sufficient U.S. dollars to ensure the exchange in the range of 7.75 to 7.85 Hong Kong dollars per U.S. dollar.
"Currently, from Hong Kong to get sufficient foreign exchange reserves, assets exceed 440 billion US dollars, which guarantees the reliable support to the Hong Kong dollar," - he stressed.
Paul Chan added that Hong Kong has sufficient funds, the experience and confidence to respond to emerging challenges.