Subsequent literature has shown, on the one hand, that capital account openness by itself may not induce growth in absence of appropriate institutions and on the other, capital controls can indeed be used as a macro-prudential tool to restore or promote stability.
We believe that the global recovery combined with the stable growth of the Mainland - with the full support of the central government - will help the economies of Hong Kong SAR and Macao SAR maintain the momentum of strong growth. We appreciate the Fund’s efforts to promote global economic and financial stability by strengthening surveillance.