mainland financial institutions in Hong Kong shall not enjoy any privileges. They shall abide by the law of Hong Kong and be regulated by the relevant supervisory authorities in Hong Kong. BIS Review 12/1997  -4-  This arm’s length treatment will certainly help to underscore the implementation of the “one country, two systems” principle.
The fourth principle is that the People’s Bank of China will support the currency stability of Hong Kong. On behalf of the PBOC, I have early this year signed a bilateral agreement with the HKMA on the repurchase of US treasury paper.