THE LEGAL AND POLICY FRAMEWORK According to the Joint Declaration and the Basic Law, Hong Kong will enjoy autonomy in all areas other than foreign affairs and defence matters.
According to IMF estimates, the continuation of a US deficit at the present levels, equal to 2 per cent of world GDP, would imply a further increase in the share of world financial portfolios invested in US instruments. Until some time ago, the deficit was financed by building up external liabilities represented by direct investment and equity portfolio flows.