In addition, the Basic Law stipulates that the Chinese Government will not levy taxes in Hong Kong. These three-fold safeguards are evidence that China will not interfere with Hong Kong’s financial matters. We have reiterated time and again that under no circumstances will China draw on or resort to Hong Kong’s Exchange Fund or other assets in any way or for any reason.
On the contrary, the PBOC will support the currency stability of Hong Kong. The PBOC and the HKMA entered into a bilateral agreement on repurchase of US treasury paper early this year. We also stand ready to provide funds to support the Hong Kong dollar, if necessary.