Home
News
In Focus
Business
Metro
Nation
World
Sports
Feature
Opinion
View more »Opinion Columns
Wan LixinOpinion deputy editor of Shanghai Daily
Restaurants get off to a quick start thanks to game-changing policies
High service charges on event ticket refunds call for further regulation
Sunday
- Subscribe
Related News
HK inks currency swap deal to boost liquidity
By Zhang Fengming |
January 21, 2009, Wednesday
|
Print Edition
Print Edition
CHINESE central bank and Hong Kong signed a 200-billion-yuan (US$29 billion) currency swap deal yesterday to bolster liquidity in the special administrative region.
The three-year deal gives the Hong Kong Monetary Authority access to the yuan whenever the SAR needs "short-term liquidity support," the People's Bank of China said yesterday.
Short-term liquidity support can also be provided to the mainland operations of Hong Kong banks and the Hong Kong operations of mainland banks.
The deal can also promote yuan-backed trade between the mainland and Hong Kong and strengthen confidence in Hong Kong's financial sustainability, the bank said.
The life of the deal can be extended with the agreement of both sides.
The deal is seen as a further strengthening of financial cooperation between the mainland and Hong Kong.
The Financial Secretary of Hong Kong John Tsang said the deal would further support Hong Kong's economic development and help maintain Hong Kong's status as an international financial center.
The central government last month said 14 measures would be undertaken to support Hong Kong's financial stability and economic development, including a currency swap agreement.
Hong Kong expects negative economic growth for the last quarter last year and the first half this year, Chief Executive Donald Tsang said earlier this week.
Whether the economy recovers thereafter hinges on the effectiveness of government measures around the world.
Hong Kong's economy slid into recession last year for the first time in five years as it contracted in the third quarter.
The three-year deal gives the Hong Kong Monetary Authority access to the yuan whenever the SAR needs "short-term liquidity support," the People's Bank of China said yesterday.
Short-term liquidity support can also be provided to the mainland operations of Hong Kong banks and the Hong Kong operations of mainland banks.
The deal can also promote yuan-backed trade between the mainland and Hong Kong and strengthen confidence in Hong Kong's financial sustainability, the bank said.
The life of the deal can be extended with the agreement of both sides.
The deal is seen as a further strengthening of financial cooperation between the mainland and Hong Kong.
The Financial Secretary of Hong Kong John Tsang said the deal would further support Hong Kong's economic development and help maintain Hong Kong's status as an international financial center.
The central government last month said 14 measures would be undertaken to support Hong Kong's financial stability and economic development, including a currency swap agreement.
Hong Kong expects negative economic growth for the last quarter last year and the first half this year, Chief Executive Donald Tsang said earlier this week.
Whether the economy recovers thereafter hinges on the effectiveness of government measures around the world.
Hong Kong's economy slid into recession last year for the first time in five years as it contracted in the third quarter.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
