Financial System

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Financial system[edit]

  • The financial system is a financial system structure established by a country in the form of law, and the division of labor and interconnection of various banks and non-bank financial institutions that constitute this system. The financial system has gradually formed in the long-term development. It has evolved into Complex and clear system.


  • The financial system is a financial system structure established by a country in the form of law, and the division of labor and interconnection of various banks and non-bank financial institutions that constitute this system. The financial system has gradually formed in the long-term development. It has evolved into Complex and clear system. The so-called financial system refers to the banking system and its corresponding institutional regulations. The main body of the financial system of the Western countries is the central bank and commercial banks.[1]


  • (1) The top level of the financial system is the law, rules and regulations and monetary policy, that is, financial activities and financial transaction rules in the general sense;
  • (2) The middle layer of the financial system is the composition of the financial system, including financial institutions and regulatory agencies;
  • (3) The basic layer of the financial system is the behavior of financial activities and financial transaction participants. In any financial system, its participants can be basically classified into five categories: people or departments with more funds, people with shortage of funds or Department, financial intermediaries, financial markets, financial regulatory authorities.

Hong Kong financial system[edit]

  • Hong Kong is a major international financial centre. Financial institutions are closely linked to the market. They provide a wide range of investment products and services to local and overseas clients and investors. The Hong Kong financial market is characterized by high liquidity and effective and transparent regulation of the market. Under the operation, all regulatory regulations are in line with international standards.
  • The Hong Kong Special Administrative Region (HKSAR) Government abides by the principle of not interfering with the operation of the financial market as much as possible and tries its best to provide an environment conducive to business. The government implements a low tax policy and implements a simple tax system to enable various businesses to have more initiative and innovation. Space. Hong Kong attaches great importance to the rule of law and maintains fair competition in the market. It will not prevent foreign companies from participating in the local financial market, nor will it restrict the flow of funds into and out of Hong Kong. Moreover, there is no foreign exchange control in Hong Kong.
  • Financial Markets: In the banking sector, as of the end of May 2006, there were 134 licensed banks, 32 restricted licence banks and 33 deposit-taking companies in Hong Kong. In addition, 88 foreign banks have representative offices in Hong Kong, branches. A total of about 1, 300 (excluding the main place of business in Hong Kong). These foreign banks come from 37 countries, 69 of which are among the world's 100 largest banks. Hong Kong banks are engaged in a wide range of retail and wholesale banking operations, such as 1. Deposit acceptance, trade finance, corporate finance, treasury activities, precious metals trading and securities brokerage.
  • Hong Kong has been ranked as the most economically free place by the Heritage Foundation for 11 consecutive years (1995-2005). Hong Kong's banking business is about 57% in foreign currency and is mainly external, showing Hong Kong's global banking industry. The important position in China. As of the end of 2005, the total net assets of various banks and deposit-taking institutions were HK$1, 604 billion, making Hong Kong one of the largest banking centers in the world.
  • Hong Kong's foreign exchange market is mature and active in trading. Hong Kong has no foreign exchange controls and is located in a favorable time zone. This is very beneficial to the development of the foreign exchange market. As Hong Kong and the overseas foreign exchange market are closely linked, Hong Kong investors can be fully 24 Hours of foreign exchange trading in markets around the world. According to the three-year global survey conducted by the Bank for International Settlements in 2004, the Hong Kong foreign exchange market ranks sixth in the world in terms of turnover. The Hong Kong currency market mainly includes the interbank market. The money market is mainly for the banking business at the wholesale level. The interbank interest rate in Hong Kong is determined by the supply and demand of funds between market participants. Therefore, this interest rate is one of the most important price indicators for short-term loans in Hong Kong. In March 2006, the average daily turnover of the Hong Kong Interbank Offered Rate Market was HK$266 billion.
  • In terms of capital market capitalization as of the end of May 2006, Hong Kong's stock market ranked eighth in the world and second in Asia. In terms of equity fundraising in 2005, Hong Kong's stock market ranked fifth in the world and Asia first. There are diversified investment products in the local stock market, including ordinary shares, options, warrants, CBBCs, real estate investment trusts, unit trusts and debt securities, for investors to trade. As of the end of May 2006, There are 1, 144 listed companies listed on the main board of the Hong Kong Stock Exchange (SEHK), with a total capital market value of HK$9, 411 billion. Of these, 347 are Mainland enterprises. These mainland enterprises have so far raised more than 11 through Hong Kong. HK$100 million. The transactions conducted on the Stock Exchange are carried out through the "Automatic Matching and Trading System". The third generation of electronic trading system, namely the "3rd Generation Automatic Matching and Trading System", has been fully operational. The new system provides a trading platform that connects investors, brokers and exchanges to increase market efficiency and facilitate online trading in the stock market.
  • As for the derivatives market, as of the end of May 2006, there were four futures products and two options products traded on the Hong Kong Futures Exchange (HKFE) and the Stock Exchange, including index futures, stock futures, interest rate futures, bonds. Futures, index options and stock options. As more and more mainland companies are listed on the Hong Kong stock market, H-shares index futures and options have been launched in December 2003 and June 2004 respectively. In addition, the Xinhua FTSE China 25 Index Futures and options were also launched in May 2005. As the trading of Hang Seng Index futures and options contracts was transferred to the "Automated Trading System" in June 2000, the trading operations in the derivatives market were fully electronic. The transactions carried out on the Exchange were settled and settled through three interconnected clearing companies, namely Hong Kong Securities Clearing Company Limited, Hong Kong Stock Exchange Options Clearing Company and Hong Kong Futures Clearing Company. The company settles and settles in the stock market through the Central Clearing and Settlement System. The Hong Kong Exchanges and Clearing Limited (HKEx) is the twoThe exchange company and the holding company of the three clearing companies. The Hong Kong Stock Exchange completed the introduction of a new generation of "Central Clearing and Settlement System" ("Third Generation Central Clearing and Settlement System") in mid-2003. The system is open. The structure allows the Hong Kong Stock Exchange to be connected to market participants. In the derivatives market, the Hong Kong Stock Exchange launched a new "Derivatives Settlement and Settlement System" in early 2004 to replace the Hong Kong Stock Exchange Options Clearing Company and Two sets of traditional settlement systems used by Hong Kong Futures Clearing Corporation. The Derivatives Settlement and Settlement System allows futures exchanges and stock options exchange participants to settle and settle their futures and options markets through a single front-end device. Inside the transaction.
  • In addition to the stock and futures markets, there is also an active over-the-counter market in Hong Kong, which is mainly operated and used by professional institutions. The products involved include swaps, forwards and options contracts related to stocks, interest rates and currencies.
  • Hong Kong's debt market has developed into one of the most liquid markets in the region. The Central Debt Settlement System was established in 1990 and is managed by the Hong Kong Monetary Authority. It is issued by Exchange Fund Bills and Notes and the private sector. Debt securities provide settlement and custody services. In September 2006, the average daily turnover of Exchange Fund Bills and Notes was HK$36.3 billion. As of the end of September 2006, the amount of outstanding Exchange Fund Bills and Notes was approximately 1, 304. In the first half of 2006, the amount of debt securities issued by the private sector amounted to HK$112 billion.
  • Since the beginning of the 20th century, the Hong Kong Gold and Silver Exchange has provided investors with a trading platform for trading gold. In 2005, the total number of 99 gold traded in the trading market reached 3.92 million.
  • Hong Kong is one of the most open insurance centres in the world. In June 2006, there were 174 accredited insurance companies in Hong Kong, of which 87 were incorporated in Hong Kong and the remaining 87 were incorporated in 21 countries. And Bermuda has the most. In recent years, Hong Kong's insurance market has seen good growth every year. Temporary data show that the total premiums in 2005 were about HK$ 141 billion.
  • Hong Kong is a regional centre for portfolio management activities. These include Hong Kong-recognized unit trusts and mutual funds, as well as larger institutional fund management. As of the end of March 2006, there were 1 998 approved unit trusts and mutual funds in Hong Kong. At the end of 2005, the net worth of these approved unit trusts and mutual funds was approximately HK$2, 527.2 billion.
  • The Mandatory Provident Fund (MPF) system introduced in December 2000 will have huge retirement assets to promote the further development of the financial market. The investment activities of the long-term metal accumulation will not only increase demand for new investment products, but also increase The demand for existing products will help promote the stable development of the financial market. As of May 2006, the total accrued assets under the MPF scheme have reached HK$170.6 billion (US$22 billion).
  • Supervision of financial markets: To cope with international trends, Hong Kong has developed and developed a local financial services regulatory system over the years. The main regulators include the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC), Insurance. The Office of the Commissioner of Insurance (OCI) and the Mandatory Provident Fund Schemes Authority (MPFA) are responsible for overseeing the banking, securities and futures, insurance and retirement planning businesses.
  • In 1993, the Government merged the Exchange Fund Office and the Office of the Commissioner of Banking into the HKMA. The main purpose was to ensure the maintenance of the functions of the central bank such as the financial system and the stability of the banking industry. It can be implemented by a professional organization and maintain policies. Continuity to maintain the confidence of Hong Kong people and the international financial community in Hong Kong. In addition to regulating the banking industry, other functions and objectives of the HKMA include maintaining the stability of the Hong Kong dollar, improving the efficiency of the financial system and promoting its development, and maintaining integrity and fairness. Financial system; this is roughly the same as the functions and objectives of central banks around the world.
  • The Government does not participate in the day-to-day supervision of the securities and futures industry. The Securities Regulatory Commission was established in 1989. It is an independent statutory body responsible for enforcing the laws governing the Hong Kong securities and futures market and promoting and promoting the development of the securities and futures market. Maintain and promote fairness, efficiency, competitiveness, transparency and order in the securities and futures industry and provide protection to investors. The SFC has the responsibility to regulate and monitor the Hong Kong Stock Exchange and its subsidiaries, including the The Exchange, the HKFE and three approved clearing houses. The Government will assist in promoting and coordinating market reforms implemented by the Securities and Futures Commission and the Hong Kong Stock Exchange when necessary.
  • The Securities and Futures (Amendment) Ordinance 2006 came into effect on June 23, 2006. The Amendment Ordinance provides for the separation of the role of the Chairman of the SFC and the executive management of the Association and the establishment of the post of Chief Executive Officer. Under the framework of the structure, the Chairman leads the Board of Directors of the SFC to formulate the overall direction, policies and strategies of the SFC, and to monitor the implementation of the management's objectives, policies and strategies as agreed by the Executive Board. As for the Chief Executive Officer, he is required to the Securities and Futures Commission. The day-to-day operations assume administrative responsibility. This model is consistent with local and international best governance practices.
  • The OCI is an office within the government structure responsible for enforcing the laws governing insurance companies and intermediaries. The Commissioner of Insurance is appointed as the Insurance Authority to exercise cautious supervision over the insurance industry in Hong Kong to protect policyholders. In addition, the insurance industry will consult the Insurance Authority and formulate self-regulatory measures to strengthen the professional discipline of the insurance market. Under the supervision of the Insurance Authority, the insurance industry has implemented the "Insurance Intermediary Quality Assurance Scheme". All insurance intermediaries are required to pass the examination before they can practise. Since 2002, insurance intermediaries are required to participate in continuous professional training programs before they are allowed to continue registration or authorization.
  • The MPFA was established in September 1998. It is an independent statutory body responsible for regulating and monitoring the operation of the MPF System.
  • Banks: The deposit-taking institutions in Hong Kong are divided into three levels, namely licensed banks, restricted licence banks and deposit-taking companies. According to the Banking Ordinance, the above banks and companies are collectively referred to as "authorized bodies". These authorized institutions can Hong Kong registered companies or foreign bank branches operate in Hong Kong.
  • At present, only licensed banks can operate their current account business and accept deposits of any amount and duration. Restricted license banks are mainly engaged in commercial banking and capital market operations. These banks can accept deposits of HKD 500, 000 or above. Deposit-taking companies are mostly owned by licensed banks or affiliated with licensed banks and operate a range of businesses, mainly consumer loans. Deposit-taking companies can only accept HK$100, 000 or more. A deposit with a minimum period of three months.
  • The three-tier system of authorized institutions enables companies with solid foundations but not as large as ordinary banks to be eligible to apply for restricted licence banks or deposit-taking companies in order to accept deposits from local people or to operate wholesale and investment banking businesses. The purpose of the Bank is to ensure that only those organisations with sound and well-managed organisations can be entrusted to accept deposits from the public. The licensing criteria will be reviewed regularly to ensure that they can be reflected. The need to change the regulatory environment from time to time, and in line with changing international standards.
  • Authorized institutions must comply with the requirements of the Banking Ordinance to maintain adequate liquidity and capital adequacy ratios; submit statistical reports to the HKMA on a regular basis; comply with the limits of loans to customers or directors and employees; and appoint directors and chief executive officers ( In the event of a change in control, and the change of control, seek the approval of the HKMA. Foreign banks operating in Hong Kong in the form of branches do not need to hold capital in Hong Kong. According to the Banking Ordinance, these banks are also not subject to capital ratio. Limited or limited by capital-based risk limits.
  • Hong Kong's legal framework for banking supervision is in line with international standards, including the “Main Principles for Effective Supervision of the Banking Industry” promulgated by the Basel Committee in September 1997. The regulatory process adopts a risk-based model with a focus on assessing accreditation bodies. The quality of the internal risk management system adopted for the existing and potential risks. The purpose of the supervision is to design a prudent monitoring system to help maintain the overall stability and effective operation of the banking system while providing sufficient flexibility. Let the authorized institution make a commercial decision.
  • All local registered AIs are required to maintain a statutory capital adequacy ratio of not less than 8% in accordance with the capital adequacy criteria set out in the Capital Accord issued by the Basel Committee in 1988. The HKMA intends to proceed from January 1, 2007. From the date of implementation, the revised capital adequacy framework (generally called Capital Accord II) promulgated by the Basel Committee in June 2004. In terms of monitoring the risks of foreign banks, whether the bank capital is sufficient is the regulatory body of the place where the bank is registered. Responsible for supervision. Although the supervision of credit concentration risk is the responsibility of the bank's head office and the regulatory authority of the place of registration, the HKMA will still collect data on prudent supervision of the case of large loans to banks. As for foreign exchange risk, gold management The Board will review and supervise the internal limits of banks. These limits are usually set by the head office of the bank. If there are any cases that exceed the limit, foreign banks must report to the HKMA. All authorized institutions in Hong Kong, regardless of their place of registration., all must maintain a statutory liquidity ratio of not less than 25%.
  • In view of the increasing popularity of e-banking services in Hong Kong and the increasing reliance on information technology, the HKMA continues to strengthen its regulatory framework for e-banking and accredited organisations' technology risk management. To this end, the HKMA has issued a series of guidelines., including "Electronic Banking Supervision" and "General Principles of Technology Risk Management", and conducted an on-site review of about 80 expert panel meetings on e-banking supervision and technology risk management since 2002. In addition, the HKMA promoted it as an endorsement. The self-assessment process for self-assessment of the organisations to assess the effectiveness of these organisations in e-banking supervision and technology risk management. In view of the increasing number of e-banking fraud cases in Hong Kong, the multi-channel consumer education programme on e-banking security has commenced. The bank also introduced a dual identity verification method in June 2005 to strengthen security controls on high-risk retail online banking transactions.
  • The HKMA is taking two major measures to promote the safety and stability of the banking system. First, the HKMA is assisting the Hong Kong Deposit Protection Board to set up a DPS in Hong Kong. According to the plan, in the event of a bank failure, each depositor has the most It is expected to receive compensation of HK$100, 000. It is expected that the scheme will be put into operation in the second half of 2006 to provide deposit protection. Secondly, the Industry Association has established a commercial credit database in Hong Kong as recommended by the HKMA. This database was published in 2004. The operation began in November. The first phase covers the credit information of non-capital companies with an annual turnover of no more than HK$50 million. The HKMA will work with industry associations to study how to expand the credit data of commercial credit databases.
  • Securities and Futures: The Hong Kong SAR Government's policy on the securities industry is to provide an enabling environment for the industry and to provide a fair operating market for market participants and to provide adequate supervision to ensure that securities and futures institutions follow the path to perfection. Commercial standards to maintain investor confidence, but will not be unduly hampered by cumbersome or financial intervention.
  • The trend of technological development and the integration of global financial markets is accelerating competition among local markets. To enhance Hong Kong's competitiveness as an international financial centre, the Financial Secretary announced the issue of securities and futures when he delivered his Budget speech in March 1999. The market implements three major areas of reform. The reform measures include improving the market infrastructure; reforming the market structure by combining and merging the two exchanges and the three clearing companies; and updating the legal framework of the regulatory system. Streamlined and rationalized.
  • In terms of market structure reform, the licensing legislation for the merger of the two exchanges and the three clearing companies, namely the Transaction and Clearing House (Merger) Ordinance, was enacted on February 24, 2000, and the merger plan was followed in 2000. Completed on March 6. As a merged institution, HKEx was listed on its own exchange on June 27, 2000. The purpose of the merger is to establish a new market structure to improve efficiency, reduce costs, and strengthen risk management. And encourage the market to introduce new products and services to enhance the competitiveness of the market. The Hong Kong Stock Exchange is a commercial organisation, but is awarded the important public functions such as maintaining a fair and orderly market and prudent management of risks. The checks and balances are designed to ensure that the company balances its ability to perform public functions and achieve business objectives as it develops its business.
  • As regards regulatory reforms, the Securities and Futures Ordinance came into effect on April 1, 2003. The Ordinance updates the 10 laws regulating the securities and futures markets and synthesizes them into a new piece of legislation to enable the securities and futures markets. The regulatory system is in compliance with international standards and practices. It also introduces new regulatory measures, including the establishment of a single licensing system for market intermediaries to streamline regulatory arrangements and relieve the burden on regulated persons. Conditions to enhance the quality of intermediaries' services; set up market misconduct tribunals, handle cases in civil proceedings, and expand existing criminal prosecutions to combat market misconduct; update regulations on disclosure of securities interests to improve Market transparency; and flexible regulation of automated trading services to promote market innovation. The regulations provide a more transparent and more complete regulatory framework and achieve a reasonable balance between protecting investors and promoting market development. In addition, the Ordinance has further consolidated Hong Kong's position as a major international financial centre and the premier fundraising centre in Mainland China.
  • Insurance: The Insurance Companies Ordinance stipulates that all insurance companies operating in Hong Kong or from Hong Kong are authorized and prudently supervised by the Insurance Authority. The Government's policy is to allow new insurance with good reputation, financial stability and sound management. Companies, join the ranks of insurance. All insurance companies seeking authorization from the Insurance Authority are subject to the same authorization criteria, and all authorized insurance companies, regardless of their place of registration, are also subject to cautious supervision by the Insurance Authority.
  • MPF System: In August 1995, Hong Kong enacted the Mandatory Provident Fund Schemes Ordinance, which laid the foundation for the establishment of a mandatory private provident fund system. This means that Hong Kong has taken an important step in providing retirement protection for employees. The Ordinance was amended in March 1998. The subsidiary regulations were also passed in April 1998 and May 1999 respectively. Specific provisions were made on the operation of the MPF System and the exemption of certain Occupational Retirement Scheme members. rule.
  • As the MPF contributions are mandatory, the Government has introduced a number of measures under the MPF System to ensure that MPF assets are properly kept. These include setting strict criteria for the approval of MPF trustees. Prudent supervision to ensure compliance with standards and compliance; ensure that the plan is functioning and transparent; and establish a compensation fund mechanism to compensate for losses incurred as a result of illegal activities. The MPF system began in December 2000. As at the end of May 2006, about 98.7% of the employers, 96.9% of the employees and 77% of the self-employed persons participated in the MPF Scheme. The MPF legislation was continuously reviewed to enhance the effectiveness of the MPF System. And the enactment of the legislation relating to the operation and technical matters was enacted in 2002. Another legislative amendment to the investment regulation was also enacted in 2006. The MPFA is currently preparing other covered schemes and Proposed amendments to law enforcement matters for submission to the Legislative Council for consideration.
  • In June 2004, the MPFA promulgated the MPF Investment Fund Disclosure Code to improve the disclosure of MPF fund charges and investment performance information. The objective is to enhance transparency and ensure that plan members have more information and make informed investments. It was decided that the MPFA also announced a set of Compliance Standards in July 2005 to assist the approved MPF trustees in establishing a rigorous compliance framework to monitor the compliance obligations and responsibilities of the organisation.
  • Money market: As far as the money market is concerned, the interbank interest rate market in Hong Kong is large and active, and the wholesale Hong Kong dollar activities between banks are also conducted through the interbank interest rate market. The Hong Kong Interbank Offered Rate and the Borrowing Interest Rate are An important indicator of financial liquidity in the financial market, and plays an important role in the pricing of Hong Kong dollar credit.
  • Bank interbank funds have always been the main source of Hong Kong dollars in the banking system, especially for banks that do not operate large retail networks (mostly foreign registered banks). At the same time, the interbank market is also those with large customer deposits. Banks make short-term loan investment channels. At present, interbank funds account for about 15% of all banks' total Hong Kong dollar debt, reflecting that the interbank interest rate market is very important for Hong Kong financial intermediation services.
  • Monetary policy: Hong Kong's monetary policy objective is to maintain monetary stability, that is, to maintain a stable exchange rate of the Hong Kong dollar, so that the exchange rate of the Hong Kong dollar against the US dollar in the foreign exchange market remains at around 7.80 Hong Kong dollars to about US$ 1. The reason for adopting this target is that Hong Kong is a high Outward economic system. Maintaining the stability of the Hong Kong dollar exchange rate is of particular importance to Hong Kong, both in terms of the nature of local business activities or public confidence.
  • Hong Kong implemented the linked exchange rate system in October 1983, which is a currency board system. The currency board model stipulates that the Hong Kong dollar monetary base is provided by the exchange reserve of US dollar at a fixed exchange rate of 7.80 Hong Kong dollars to 1 US dollar. 100% of the support, and any change in the Hong Kong dollar monetary base must also be 100% compatible with the corresponding changes in the US dollar reserves. The monetary base includes the issued banknotes and coins, and the balance of the settlement accounts opened by the licensed banks in the HKMA ( That is, summing up the surplus and outstanding Exchange Fund Bills and Notes.
  • As of the end of May 2006, Hong Kong's foreign exchange reserves amounted to US$12.5 billion, which is about six times that of the currency in circulation. It ranks eighth in the world. When three banknote issuing banks in Hong Kong issue banknotes, they must apply to the HKMA's Exchange Fund account. Deposit US dollars (based on HK$7.80 to US$1) in exchange for legally required liability certificates for banknotes. For the government issued 10 dollar notes and coins, the HKMA and the correspondent bank (responsible for custody and launch in the market 10 The transaction between the dollar notes and the coins is also settled in US dollars at the exchange rate of HK$7.80 to US$1. Therefore, both the Hong Kong dollar notes and the coins are fully supported by the US dollar in the Exchange Fund, and the changes are also correspondingly increased by the US dollar reserves. Since September 1998, the HKMA has clearly assured licensed banks that the Hong Kong dollar in the settlement accounts of these banks will be converted into US dollars. The HKMA launched a strong exchange guarantee on May 18, 2005, at 7.75. The level of buying dollars into licensed banks, and announced that the current HKMA will sell the US dollar at 7.80 level to the licensed bank's weak party exchange guarantee to move to the level of 7.85, so that the strong and weak two-way exchange guarantee can be symmetricOperating at a linked exchange rate of 7.80. The HKMA may choose to conduct market operations in accordance with the operating principles of the currency board system in order to facilitate the smooth exchange of currency and foreign exchange markets within the exchange range set by the strong and weak exchange guarantee levels. Smooth operation.
  • Development of the Debt Market: In the past 10 years, the HKMA has implemented a number of measures to develop the local debt market, including the issuance of Exchange Fund Bills and Notes, and the establishment of the “Debt Tools Central Clearing System”. The Exchange Fund Bills and Bond Issuance Programme provide high quality. Hong Kong dollar bonds and a benchmark yield curve for Hong Kong dollar bonds to promote growth in the debt market. The establishment of the "Debt Instrument CCASS" provides an efficient settlement and settlement system for Hong Kong dollar and non-Hong Kong dollar bonds, while overseas The networking of the settlement system will facilitate the investment of cross-border debt instruments. Other measures include the use of Exchange Fund Bills and Notes as margin collateral for trading futures, index options and stock options from March 1999, which encourages encouragement. The market has extensively used Exchange Fund Bills and Notes to increase the liquidity of Exchange Fund Bills and Notes. In addition, Exchange Fund Notes began listing on the Stock Exchange in August 1999, expanding the investor base to the level of individual investors. The listing of bonds issued by various institutions, such as the Hong Kong Mortgage Corporation Limited (HKMC) since 1999Some of the bonds issued will be listed on the Stock Exchange from October.
  • To further enhance the liquidity and transparency of the second-hand market of Exchange Fund Bills and Notes, the HKMA has adopted a number of reform measures since 2000, including regularly reviewing the performance of market makers based on benchmarking criteria; replacing short-term Exchange Fund Bills with long-term Exchange Fund Notes. And bonds; and the quarterly issuance schedule for the release of Exchange Fund Bills and Notes. The HKMA has published Exchange Fund Bills and Notes on its website since November 2002, as well as other debts managed and settled by the Debt Instrument CCASS. The statistics of the monthly turnover and the outstanding amount of the securities. These figures are based on the remaining maturity and fixed rate/floating-rate bonds. In addition, the HKMA implemented the "Exchange Fund Bills and Notes Pricing Scheme" in December 2002 to strengthen the Hong Kong dollar benchmark. The credibility of the yield curve. The pricing of Exchange Fund Bills and Notes was published by major news agencies and posted on the website of the HKMA.
  • The HKMA has been working hard to strengthen the infrastructure of the debt market. In 2000 and 2003, the Bank introduced the "Dollar Separation System" and the "Euro Settlement System" respectively, enabling the US dollar and Eurobond transactions to be efficiently settled in real time in the Asian time zone. In December 2005, the Central Bank of Malaysia signed a memorandum of understanding with the HKMA to establish a network between the Malaysian real-time payment settlement system in Malaysia and the US dollar real-time payment settlement system in Hong Kong. The network is scheduled to be completed in 2006 and is the first in the region. Establish cross-border networking between two real-time payment settlement systems to provide simultaneous settlement of foreign exchange transactions for two currencies.
  • In November 2001, the Hong Kong Stock Exchange launched three-year Exchange Fund Notes futures as a tool to hedge risk in the debt market. To encourage more companies to list their bonds, HKEx lowered the listing of bonds on July 1, 2002. In addition, the Government has taken a number of measures to simplify the regulations and procedures for bond issuance and listing.
  • In order to promote the development of the retail bond market, various institutions have continuously implemented reform measures, including reducing the minimum face value of bonds eligible for tax concessions from HK$500, 000 to HK$50, 000 in 1999; instilling knowledge about bond investment to the public Reviewing the rules for the public offering of bonds; the mortgage company has issued bonds for individual investors through the bank's sales network since 2001; and the introduction of retail exchange fund bonds. The MPF system introduced in December 2000 further promotes The development of the debt market and fund management business. The government successfully issued bonds in May and July 2004, which raised the public's awareness and interest in bonds and increased the investment choices of the public. Individuals and institutional investors The response to these two bond is very active. This not only proves that Hong Kong has the infrastructure and talents to issue large-scale bonds, but also shows Hong Kong's huge potential demand for high-quality bonds.
  • The Government is conducting a phased review of the public offering system for improving retail bonds and shares. The recommendations in the first phase of the Shanshan plan were implemented in May 2003. December 2004, in the Companies (Amendment) Ordinance 2004 The amendments relating to the prospectus came into effect, marking the completion of the second phase of the improvement plan and explicitly assigning statutory status to the first phase of the measure. The third phase of the improvement plan was issued by the SFC regarding the Companies Ordinance. The feasibility study reform document of the prospectus system was launched in August 2005. The scope of the reform proposal relates to the regulatory trend of similar but legally divided financial products of different categories, pre-trade research, sponsor's Legal liability, and the information that can be kept in an online depository by reference to the system in the prospectus. The consultation period ended on December 31, 2005, and received 26 submissions. The government expects to respond. Documents can be published in the third quarter of 2006.
  • Monitoring of the Settlement and Settlement System: The Settlement and Settlement System Ordinance came into effect in November 2004. The purpose of the Ordinance is to promote the stability of Hong Kong in monetary or financial terms or to act as an international financial centre for Hong Kong. The function of the clearing and the overall safety and efficiency of the settlement system. The Ordinance empowers the Monetary Authority to designate and monitor such settlement and settlement systems. The Ordinance also provides for the settlement of transactions conducted through such designated systems. Final statutory support is provided to protect the finality of the settlement from bankruptcy legislation or any other legislation. To this end, the Monetary Authority will issue a final certificate to the designated system that meets certain criteria set out in the Ordinance. As of 2005 At the end of the year, there are a total of five settlement and settlement systems (including "Debt Tools CCASS", "Hong Kong Dollar Clearing House Automated Transfer System", "Continuous Link Settlement and Settlement System", "Dollar Clearing House Automated Transfer System" and "Euro The Clearing House Automated Transfer System" is designated and each is issued with a final certificate. After the implementation of the Ordinance, an independent settlement and settlement system appeal is reviewed.The department has been established under the Ordinance to hear an appeal against any decision made by the Monetary Authority on the appointment and related matters. In addition, a procedure review committee comprising independent persons was established in December 2004. Responsible for reviewing the procedures and procedures used by the Monetary Authority to apply the standards required by the Regulations to designated systems with statutory or beneficial interests in the HKMA.


The Financial System

00:00 the financial system in 1907 financial
00:03 panic broke out of the United States the
00:05 stock market crashed and people stormed
00:07 the banks the banker JP Morgan brought
00:09 together the rich elite of America into
00:11 a single room and forced them to loan
00:13 money to the banks in order to prevent a
00:15 collapse of the financial system 101
00:18 years later nine heads of the largest
00:20 banks in the United States congregated
00:22 in a room at the Ministry of Finance and
00:24 did not exit until they signed their
00:26 consent to receive a government bailout
00:28 of 250 billion u.s. dollars why is the
00:33 financial system so important that
00:34 everything must be done in order to
00:36 prevent its collapse the financial
00:38 system is composed of institutions and
00:39 markets it's job is to act as a broker
00:42 between those who need money or capital
00:44 and those who have capital it's
00:46 responsible for allocating capital in
00:48 the world who has capital households
00:50 companies and governments that deposit
00:53 and banks money that they've saved or
00:54 that invest money in the capital markets
00:56 who needs capital households companies
00:59 and governments need more money than
01:01 they have for household purchases
01:02 recruitment of workers development
01:05 technology and the building of
01:06 infrastructures brokering is done
01:08 directly through the purchase of
01:10 securities bond or shares investors
01:12 basically transfer money to companies or
01:14 governments or indirectly to banks and
01:16 financial institutions which take
01:18 deposits and essentially provide loans
01:20 to ever needs money when a company sells
01:23 shares it's raising capital for its
01:25 activities and in return it gives
01:27 investors a stake in its ownership
01:29 shareholders are meant to share in the
01:30 profits of the company which they
01:32 receive as dividend payments when a
01:34 company sells bonds its lending money
01:36 the investor who purchases the bond is a
01:38 lender but has no ownership he's
01:41 supposed to receive interest payments of
01:42 the entire loaned Sal at the end of the
01:44 period an example of allocating capital
01:47 through bonds is China which purchases
01:49 from its actual revenues bonds of the
01:51 United States government thereby
01:53 financing it when we save and invest
01:55 money we hope to increase her capital
01:57 pension saving for instance is meant to
01:59 finance our retirement in exchange for
02:01 loaning money to someone else we receive
02:04 yield and our money grows without
02:06 brokerage the global financial system
02:07 would look completely different the
02:09 achievements of the financial system are
02:11 not negligible and when it failed to the
02:13 Brazil
02:14 for catastrophic in the crisis panic
02:16 took over and Trust in the financial
02:18 system was destroyed the desire to lend
02:20 money dissipated thank you for your time
02:23 and we're certain that the more you
02:25 learn the more interesting and
02:26 successful trade will be you can find
02:28 additional and more focus courses on
02:30 trade that teach Market basics models
02:32 support not position and more

This "The Financial System" video is published on 6 Mar 2015 by rolin corporation under People & Blogs category on YouTube (with 3,575 views, 23 likes, 1 dislikes and 326 subscribers on 23 Aug 2018).


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