Under the Basic Law, however, there appears only a corresponding general requirement. Article 76 states that once a bill has been passed by the Legislative Council, all that is required for it to take effect is signing and promulgation by the Chief Executive. In addition, Article 17 states that “laws enacted by the legislature of the Hong Kong Special Administrative Region must be reported to the Standing Committee of the National People’s Congress for the record.” But this article also states that “the reporting for record shall not affect the entry into force of such laws.” 4. On the other hand, unlike the Royal Instructions, the Basic Law also prescribes in considerable detail the financial systems to be practised in the HKSAR. For example, Article 109 provides that the HKSAR government shall maintain the status of Hong Kong as an international financial centre. Article 110 provides that the HKSAR government shall, on its own, formulate monetary and financial policies. Article 111 prescribes that the Hong Kong dollar, as the legal tender in the HKSAR, shall continue to circulate. Article 112 states that no foreign exchange control policies shall be applied in the HKSAR and that the Hong Kong dollar shall be freely convertible. Article 113 stipulates that the Exchange Fund of the HKSAR shall be managed and controlled by the government of the HKSAR.
To further enhance the competitiveness of our banks and step up our supervisory efforts, the HKMA commissioned a large-scale consultancy study of the local banking sector. The study was completed in 1998 and the recommendations contained in it are being carefully considered by the HKMA. (E) Hong Kong continues its participation in international financial activities in accordance with the provisions in the Basic Law  BIS Review 39/1999  4  19. The Basic Law provides that the HKSAR may, using the name of “Hong Kong, China”, maintain and develop financial ties with different countries and regions. This includes entering into and implementing multilateral and bilateral financial agreements, setting up overseas official and quasiofficial financial representative offices, and handling external financial relations. 20. Following the handover, Hong Kong has become even more active in the international financial scene. In addition to further developing co-operation with regional central banks, the HKMA has strengthened its ties with multilateral and international financial institutions. In September 1997 the Annual Meetings of the International Monetary Fund/World Bank were staged with great success. As the first major international event in Hong Kong after the handover, the Meetings became an important landmark in Hong Kong’s financial history. In 1996 both HKMA and the PBOC were admitted to the Bank for International Settlements (BIS) in their own right.