I refer to Standard Chartered Bank, and now Hong Kong has already belonged to China, but why do Hong Kong dollars still allow foreign banks to issue it?
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Because according to the regulations of one country, two systems, Hong Kong's economic system has been unchanged for 50 years, so its currency issuance can also continue to be implemented in accordance with previous regulations, and its currency issuance rights are formulated by the Hong Kong government.
If in Article 110 of the "Basic Law of the People's Republic of China Hong Kong Special Administrative Region" Article 110 The monetary finance system of the Hong Kong Special Administrative Region shall be provided by law. The Hong Kong Special Administrative Region Government formulates monetary and financial policies to ensure the freedom of management of financial enterprises and financial markets, and manages and supervise according to law.
111 Hong Kong dollar is the legal currency of the Hong Kong Special Administrative Region and continues to circulate. The issuance right of Hong Kong dollars belongs to the Hong Kong Special Administrative Region Government. The issuance of Hong Kong dollars must be 100 % reserve. The issuance system and reserve system of Hong Kong dollars shall be stipulated by the law.
Extended information:
"The Basic Law of the People's Republic of China Hong Kong Special Administrative Region" Article 8 of the original law of Hong Kong, namely ordinary law, Hengping Law, Regulations, Affiliated Legislative Law, in addition to conflicting or scriptures in the same law or scriptures In addition to the legislators of the Hong Kong Special Administrative Region, they are reserved.
The Hong Kong Special Administrative Region is a local administrative area with a high degree of autonomous power at the People's Republic of China and is directly under the Central People's Government.
The Central People's Government is responsible for managing foreign affairs related to the Hong Kong Special Administrative Region. The Ministry of Foreign Affairs of the People's Republic of China set up institutions in Hong Kong to deal with foreign affairs. The Central People's Government has authorized the Hong Kong Special Administrative Region to handle foreign affairs related to this law.
Reference materials Source: Baidu Encyclopedia -the Basic Law of the People's Republic of China Hong Kong Special Administrative Region
I am an employee of the Bank of China, this question, some traditional factors, see if my answer is satisfied.
In mainland China, my country's issuing currency institutions are the People's Bank of China. The first major commercial banks only undertake business and issue currency. In Hong Kong, it is the Financial Management Bureau. The Financial Administration of Hong Kong has played the management function of the central bank of the mainland. The work of issuing Hong Kong dollars is based on Hong Kong's financial system.
This issuance of Hong Kong dollars is bound to the US dollar exchange rate. At the beginning, it was issued at the exchange rate of 1: 8. That is, the Financial Management Bureau has $ 1 and issues 8 Hong Kong dollars to the society. It is the earliest Hong Kong three large banks. BOC Hong Kong, HSBC, Standard Chartered Bank. Under the premise of fully open the commodity market economy in the West, the operation of the financial system is also market -oriented. These three banks store the US dollar's reserve in the HKMA. Therefore, these three banks with a special background are also participated in the money issuance.
Why choose these three banks? According to international management, in the completely free financial market, banks are economic entities invested by consortia, which is likely to be closed because of poor management or various risks. Decades ago, so far, these three banks are three largest banks in Hong Kong, and this largest closure risk will not happen.
Secondly, these three banks are also large international banks and have a comprehensive and perfect financial operation method in the world's financial field. Therefore, multiple links from issuing money, management, circulation, and other links can be achieved in place. There will be no imitation, or even limited circulation.
Third, these three banks have a unique background. BOC Hong Kong, let's not say that, the wholly -owned subsidiary of Bank of China, as a representative of the mainland in Hong Kong, is fully entrusted by the State Council (this is told by the leaders of our provincial bank because the former governor of our province was the leader of China Bank of China), Participate in Hong Kong's financial work and the money to issue banknotes represents the Chinese government. HONGKONG and SHANGHAI Banking Limited. It was opened by the original Shanghai Government and Hong Kong injection, and it was a local financial institution in Hong Kong. Standard Chartered Bank is a British bank. In fact, in the Britain's local banks that choose business agents in Hong Kong, it is relatively advantageous. The scale is not large, and it is eager to expand to the world. Compared with LLOYD, an old -fashioned commercial bank in Britain, traditional businesses are not willing to expand overseas, which has become the most suitable choice. Therefore, the three lines represent the mainland, Hong Kong, and the United Kingdom.
In fact, the Hong Kong government is also issued by the Hong Kong government. Of course, only 10 yuan Hong Kong dollars of banknotes are issued.
Why can foreign banks issue money?
The financial system in Hong Kong. Besides the current political system. Hong Kong has returned, but Deng Xiaoping promised to make Hong Kong self -made and remain unchanged for 50 years. Hong Kong's capitalist social and political system and economic system are independent, protected, and unchanged. Therefore, continue to maintain the original. Including various affairs such as diplomacy, but only the return of sovereignty.
So, under the premise of all the constant, the main body of financial banknotes and the three major banks will not change, and it is fully market -oriented.
The example is also in Macau. Macau's banknote issuance agencies are two major banks: Bank of China (representing the mainland) and Atlantic Bank. Atlantic Bank was founded by Portugal in Macau and entrusted banknotes. The reason is the same.
As far as I know, there are HSBC Bank, the Hong Kong dollar version issued by HSBC, Bank of China and the People's Bank of China, is determined by Hong Kong's special status!
There are three banknote issuance banks, Bank of China, HSBC, Standard Chartered Bank. This is the previous regulations that the three largest banks in Hong Kong issued banknotes.
That's because the one country, two systems and 50 years remain unchanged, so it was issued by foreign banks. This is actually a British tradition. In the Scottish region and northern love area in the UK, commercial banks have issued the Scottish pound and northern love pound. The management agency of Hong Kong dollars is the Financial Administration of Hong Kong. He entrusts HSBC, Standard Chartered and BOC Hong Kong to issue Hong Kong dollars banknotes. The first three banks need to be deposited into the Hong Kong and Gold Bureau after the fixed exchange rate is converted. Hong Kong dollars.