Hong Kong has consistently ranked as the world's freest economy and is an important international financial center due to its business-friendly environment, rule of law, and sophisticated infrastructure. It has a highly liquid financial market characterized by transparency and high standards. The banking sector has a strong international presence while the stock market is one of the largest in the world in terms of capitalization. Hong Kong also has a large foreign exchange market, having risen to become the 6th largest globally according to a recent BIS survey, reflecting the city's role as a competitive center for foreign exchange activities.
The document discusses the internationalization of the Chinese yuan (RMB). It notes that while RMB deposits in Hong Kong declined in 2012 due to increased investment options in China, this represents positive development toward the RMB's role in investment. Banks are developing strategies around opportunities from RMB internationalization. The document also outlines the current state of RMB clearing infrastructure and expectations for the future evolution of RMB clearing systems to support its growing international use.
We are delighted to present our July newsletter, which covers developments in the products and services offered by the exchange, as well as news, interviews, and market data.
RMB Internalization, Rational, Establishing of Clearing Bank and Requirement ...Moncef Heddad
ย
The document provides an overview of RMB internationalization including:
1) The rationale for adopting RMB including lower financing costs and greater investment choices.
2) The development process of RMB internationalization from 2002-2014 including its emergence as a trade settlement, investment, and reserve currency.
3) China's increasing trade volumes supporting further adoption of RMB as a trade currency, especially with developing economies.
4) Growth of RMB investment schemes like QFII and RQFII and expectations for further opening of China's capital markets.
This document discusses the future of the Chinese renminbi (RMB) as a global investment currency. While the RMB is already widely used internationally, strict controls on its usage mean it has not achieved the same status as major currencies like the US dollar. The document finds that:
1) China's central bank says it remains committed to liberalizing its markets and making the RMB freely usable, but the process will require some ongoing policy control from the government.
2) Most financial services executives still expect the RMB to become fully convertible within 5 years, though some reforms are still needed to enable its adoption as a global investment currency.
3) For the RMB to achieve full status as
The document discusses the history and development of stock exchanges in India. It provides details about the National Stock Exchange of India (NSE), including its incorporation in 1992 and management structure. NSE offers a wide range of trading products across multiple markets. It has over 1,400 listed companies in its Capital Market segment and facilitates trading in derivatives like stock futures and options. The exchange has grown substantially over the years in trading volumes and market capitalization of listed companies.
Role of Banking in Customs & Trade proceduresShams Amlani
ย
The document discusses trade facilitation in Pakistan. It defines trade facilitation as the simplification and harmonization of international trade procedures. It outlines Pakistan's efforts to facilitate trade, including establishing the National Trade and Transport Facilitation Committee in 2001 and introducing the Pakistan Customs Computerized System in 2005. The system automated customs clearance and connected stakeholders. The document also discusses the role of commercial banks and documents involved in international trade, import, and export in Pakistan.
This document provides information about an organization called HIMABIO and encourages joining their efforts. It lists their work in conservation and contains links to Flickr pages for background images. The document promotes participating in the activities of HIMABIO's biology department at Lambung Mangkurat University.
The document discusses the internationalization of the Chinese yuan (RMB). It notes that while RMB deposits in Hong Kong declined in 2012 due to increased investment options in China, this represents positive development toward the RMB's role in investment. Banks are developing strategies around opportunities from RMB internationalization. The document also outlines the current state of RMB clearing infrastructure and expectations for the future evolution of RMB clearing systems to support its growing international use.
We are delighted to present our July newsletter, which covers developments in the products and services offered by the exchange, as well as news, interviews, and market data.
RMB Internalization, Rational, Establishing of Clearing Bank and Requirement ...Moncef Heddad
ย
The document provides an overview of RMB internationalization including:
1) The rationale for adopting RMB including lower financing costs and greater investment choices.
2) The development process of RMB internationalization from 2002-2014 including its emergence as a trade settlement, investment, and reserve currency.
3) China's increasing trade volumes supporting further adoption of RMB as a trade currency, especially with developing economies.
4) Growth of RMB investment schemes like QFII and RQFII and expectations for further opening of China's capital markets.
This document discusses the future of the Chinese renminbi (RMB) as a global investment currency. While the RMB is already widely used internationally, strict controls on its usage mean it has not achieved the same status as major currencies like the US dollar. The document finds that:
1) China's central bank says it remains committed to liberalizing its markets and making the RMB freely usable, but the process will require some ongoing policy control from the government.
2) Most financial services executives still expect the RMB to become fully convertible within 5 years, though some reforms are still needed to enable its adoption as a global investment currency.
3) For the RMB to achieve full status as
The document discusses the history and development of stock exchanges in India. It provides details about the National Stock Exchange of India (NSE), including its incorporation in 1992 and management structure. NSE offers a wide range of trading products across multiple markets. It has over 1,400 listed companies in its Capital Market segment and facilitates trading in derivatives like stock futures and options. The exchange has grown substantially over the years in trading volumes and market capitalization of listed companies.
Role of Banking in Customs & Trade proceduresShams Amlani
ย
The document discusses trade facilitation in Pakistan. It defines trade facilitation as the simplification and harmonization of international trade procedures. It outlines Pakistan's efforts to facilitate trade, including establishing the National Trade and Transport Facilitation Committee in 2001 and introducing the Pakistan Customs Computerized System in 2005. The system automated customs clearance and connected stakeholders. The document also discusses the role of commercial banks and documents involved in international trade, import, and export in Pakistan.
This document provides information about an organization called HIMABIO and encourages joining their efforts. It lists their work in conservation and contains links to Flickr pages for background images. The document promotes participating in the activities of HIMABIO's biology department at Lambung Mangkurat University.
Tesis ini meneliti pengaruh pengelolaan kelas oleh guru terhadap efektivitas pembelajaran siswa SD di Pungguk. Peneliti berargumen bahwa pengelolaan kelas yang baik dapat menciptakan kondisi belajar yang optimal dan mengurangi gangguan, sehingga dapat mempengaruhi hasil belajar siswa. Metode penelitian menggunakan desain kuantitatif korelasi untuk menguji hubungan antara variabel pengelolaan kelas dan
Tesis ini meneliti pengaruh pengelolaan kelas oleh guru terhadap efektivitas pembelajaran siswa SD di Pungguk. Peneliti berargumen bahwa pengelolaan kelas yang baik dapat menciptakan kondisi belajar yang optimal dan mengurangi gangguan, sehingga dapat mempengaruhi hasil belajar siswa. Metode penelitian menggunakan desain kuantitatif korelasi untuk menguji hubungan antara variabel pengelolaan kelas dan
This document is a research project report submitted by Prbind Kumar Rajbher to Prof. Dr. Kamala Miss on the marketing strategies of Coca-Cola in India. It provides an overview of Coca-Cola's industry profile, company profile, core brands in India, advertisements, history in India, vision, mission and strategies. It discusses Coca-Cola's marketing mix and presence in India. The report is based on primary research conducted in Delhi to study Coca-Cola's availability and promotional schemes with retail outlets.
1. The document discusses a case study of the merger between Hindustan Lever Limited (HLL) and Ponds (India) Limited in March 1998.
2. It analyzes factors that led to the merger such as the need for mutual survival and growth in the face of economic recession.
3. The merger proved to be very successful, showing significant growth in sales turnover for both companies compared to when they were separate entities. This served as an example for other companies considering mergers.
Learn Through Play is a simple PowerPoint tutorial created to guide parents and new teachers into the world of play. In this tutorial, you will learn the how play develops other life skills. An observation template is provided, as well as a checklist. Watch and enjoy!
Hawala is an informal value transfer system originating from South Asia that allows for funds to be transferred without the actual physical movement of money. It relies on trust between brokers or hawaladers who have connections in different locations. A hawala transaction works by a customer providing funds to a hawalader in one location, who then calls or communicates with a connected hawalader in another location to deliver the funds to a recipient, minus a small commission. While mainly used for legitimate money transfers, hawala is also used for money laundering and financing of illegal organizations due to its ability to transfer funds quickly and without official records.
The Export Oriented Unit (EOU) scheme was introduced in 1980 to boost exports by allowing industrial units to be set up anywhere in India that export 100% of their production. EOUs are given duty-free imports of materials and excise exemptions to help them compete internationally. There are three categories of EOUs: those located in Export Processing Zones/Special Economic Zones, those located anywhere in India, and units producing software or electronics. EOUs operate under customs bond and can import all production needs duty-free. They can also sell up to 50% of exports domestically on payment of duties.
Aarambh is a non-profit organization founded in 1996 in Navi Mumbai, India that aims to provide educational and health support to 2000 dropout children across its 10 branches. It works with underprivileged children and women from urban slum communities and rural areas, offering educational programs, health services, and vocational skills training. The organization seeks to motivate parents to send their children to school, encourage skills training for women to earn incomes, and raise community awareness about issues like child rights, health, and literacy.
Stedenbouwkundig Ontwerp en Beeldkwaliteitsplan De Weezenlanden, ZwolleArjan Schreven
ย
Presentatie Stedenbouwkundig Ontwerp en Beeldkwaliteitsplan herontwikkeling De Weezenlanden, Zwolle
Gepresenteerd tijdens inloopbijeenkomst 21 januari 2014
This document discusses bionic technology and the potential for creating a real bionic human. It provides examples of bionic technology that currently exists, such as bionic limbs and organs. It then outlines the key body parts - face, brain, hands, legs, skeleton - that developers are working on to one day create an entirely bionic human with functioning replicas of all the body's systems and organs.
This document discusses bionic technology and the potential for creating a real bionic human. It provides examples of bionic technology that currently exists, such as bionic limbs and organs. It then outlines the key body parts - face, brain, hands, legs, skeleton, inner organs and heart - that developers are working on to one day create an entirely bionic human with functioning synthetic replacements for the whole body.
Hong Kong has a highly developed free market economy characterized by low tax rates, free trade, and a stable financial market. Its currency is pegged to the US dollar and its economy relies heavily on international trade and finance. Hong Kong has consistently ranked as one of the freest economies in the world and is an attractive location for starting businesses due to its minimal government intervention and open financial system. Major industries include finance, trading, and professional services.
The document analyzes Shanghai's plan to become an international financial center by 2020. It finds that Shanghai faces several challenges, including a complex regulatory structure, imbalanced debt markets, a lengthy equity listing process, and inconsistent derivative regulations. However, it notes Shanghai has advantages like access to China's growing financial market and infrastructure progress. The document recommends reforms like simplifying regulations, liberalizing interest rates, and establishing international standards to help Shanghai overcome its shortcomings.
InvestHK is the Hong Kong government department responsible for attracting foreign direct investment. It provides free and confidential services to help overseas, mainland Chinese, and Taiwanese companies set up and expand their businesses in Hong Kong. These services include providing market information and opportunities, facilitating business registration and visa applications, and helping companies launch and promote their Hong Kong operations. InvestHK aims to strengthen Hong Kong's position as a leading international business location in Asia.
International markets play several important roles in international trade. They function as intermediaries between lenders and borrowers, facilitating the transfer of resources and enhancing income. Financial markets provide capital formation for businesses and determine asset prices. Additionally, international markets encourage saving, investment, entrepreneurship, industrial development, and technological progress, all of which contribute to national economic growth and development and foster international trade.
The economist guide to the financial marketswijitha gayan
ย
This document provides an overview of financial markets and their functions. Financial markets have existed since early societies traded agricultural goods, fulfilling the same basic purposes as modern markets. All financial markets, whether organized exchanges or informal markets, serve to set prices, value assets, allow arbitrage, raise capital for businesses and individuals, facilitate commercial transactions, enable investment, and help manage risks. In 2004, total annual capital raised in financial markets worldwide excluding domestic loans was $7 trillion, while the total value of financial instruments traded was $109 trillion. Cross-border financial transactions have also grown dramatically in recent decades.
FESE Capital Markets Academy - Equity and Market DataStephenGilmore10
ย
The document provides an overview of equity and market data. It discusses key concepts related to equity trading, including the various actors (investors, banks/brokers, exchanges), how trading occurs through order books and price formation, and the infrastructure that facilitates electronic trading (matching engines, connectivity, latency). It also covers order types, exchange auctions, and the categorization of clients under MiFID II regulations.
The HKEx Hosting Services Forum focused on regulatory changes, commodities expansion, and innovation in Hong Kong's markets. Jonathan Leung highlighted growth from hosting services. Richard Leung discussed HKEx's development context including Chinese IPOs and international listings. HKEx acquired LME in 2012 to offer hedging tools to China and connect with that market. Work began on the Shanghai-Hong Kong Stock Connect after the LME acquisition. The Connect launched in November 2014 and saw increased southbound trading in April 2015, demonstrating traders' hopes.
Tesis ini meneliti pengaruh pengelolaan kelas oleh guru terhadap efektivitas pembelajaran siswa SD di Pungguk. Peneliti berargumen bahwa pengelolaan kelas yang baik dapat menciptakan kondisi belajar yang optimal dan mengurangi gangguan, sehingga dapat mempengaruhi hasil belajar siswa. Metode penelitian menggunakan desain kuantitatif korelasi untuk menguji hubungan antara variabel pengelolaan kelas dan
Tesis ini meneliti pengaruh pengelolaan kelas oleh guru terhadap efektivitas pembelajaran siswa SD di Pungguk. Peneliti berargumen bahwa pengelolaan kelas yang baik dapat menciptakan kondisi belajar yang optimal dan mengurangi gangguan, sehingga dapat mempengaruhi hasil belajar siswa. Metode penelitian menggunakan desain kuantitatif korelasi untuk menguji hubungan antara variabel pengelolaan kelas dan
This document is a research project report submitted by Prbind Kumar Rajbher to Prof. Dr. Kamala Miss on the marketing strategies of Coca-Cola in India. It provides an overview of Coca-Cola's industry profile, company profile, core brands in India, advertisements, history in India, vision, mission and strategies. It discusses Coca-Cola's marketing mix and presence in India. The report is based on primary research conducted in Delhi to study Coca-Cola's availability and promotional schemes with retail outlets.
1. The document discusses a case study of the merger between Hindustan Lever Limited (HLL) and Ponds (India) Limited in March 1998.
2. It analyzes factors that led to the merger such as the need for mutual survival and growth in the face of economic recession.
3. The merger proved to be very successful, showing significant growth in sales turnover for both companies compared to when they were separate entities. This served as an example for other companies considering mergers.
Learn Through Play is a simple PowerPoint tutorial created to guide parents and new teachers into the world of play. In this tutorial, you will learn the how play develops other life skills. An observation template is provided, as well as a checklist. Watch and enjoy!
Hawala is an informal value transfer system originating from South Asia that allows for funds to be transferred without the actual physical movement of money. It relies on trust between brokers or hawaladers who have connections in different locations. A hawala transaction works by a customer providing funds to a hawalader in one location, who then calls or communicates with a connected hawalader in another location to deliver the funds to a recipient, minus a small commission. While mainly used for legitimate money transfers, hawala is also used for money laundering and financing of illegal organizations due to its ability to transfer funds quickly and without official records.
The Export Oriented Unit (EOU) scheme was introduced in 1980 to boost exports by allowing industrial units to be set up anywhere in India that export 100% of their production. EOUs are given duty-free imports of materials and excise exemptions to help them compete internationally. There are three categories of EOUs: those located in Export Processing Zones/Special Economic Zones, those located anywhere in India, and units producing software or electronics. EOUs operate under customs bond and can import all production needs duty-free. They can also sell up to 50% of exports domestically on payment of duties.
Aarambh is a non-profit organization founded in 1996 in Navi Mumbai, India that aims to provide educational and health support to 2000 dropout children across its 10 branches. It works with underprivileged children and women from urban slum communities and rural areas, offering educational programs, health services, and vocational skills training. The organization seeks to motivate parents to send their children to school, encourage skills training for women to earn incomes, and raise community awareness about issues like child rights, health, and literacy.
Stedenbouwkundig Ontwerp en Beeldkwaliteitsplan De Weezenlanden, ZwolleArjan Schreven
ย
Presentatie Stedenbouwkundig Ontwerp en Beeldkwaliteitsplan herontwikkeling De Weezenlanden, Zwolle
Gepresenteerd tijdens inloopbijeenkomst 21 januari 2014
This document discusses bionic technology and the potential for creating a real bionic human. It provides examples of bionic technology that currently exists, such as bionic limbs and organs. It then outlines the key body parts - face, brain, hands, legs, skeleton - that developers are working on to one day create an entirely bionic human with functioning replicas of all the body's systems and organs.
This document discusses bionic technology and the potential for creating a real bionic human. It provides examples of bionic technology that currently exists, such as bionic limbs and organs. It then outlines the key body parts - face, brain, hands, legs, skeleton, inner organs and heart - that developers are working on to one day create an entirely bionic human with functioning synthetic replacements for the whole body.
Hong Kong has a highly developed free market economy characterized by low tax rates, free trade, and a stable financial market. Its currency is pegged to the US dollar and its economy relies heavily on international trade and finance. Hong Kong has consistently ranked as one of the freest economies in the world and is an attractive location for starting businesses due to its minimal government intervention and open financial system. Major industries include finance, trading, and professional services.
The document analyzes Shanghai's plan to become an international financial center by 2020. It finds that Shanghai faces several challenges, including a complex regulatory structure, imbalanced debt markets, a lengthy equity listing process, and inconsistent derivative regulations. However, it notes Shanghai has advantages like access to China's growing financial market and infrastructure progress. The document recommends reforms like simplifying regulations, liberalizing interest rates, and establishing international standards to help Shanghai overcome its shortcomings.
InvestHK is the Hong Kong government department responsible for attracting foreign direct investment. It provides free and confidential services to help overseas, mainland Chinese, and Taiwanese companies set up and expand their businesses in Hong Kong. These services include providing market information and opportunities, facilitating business registration and visa applications, and helping companies launch and promote their Hong Kong operations. InvestHK aims to strengthen Hong Kong's position as a leading international business location in Asia.
International markets play several important roles in international trade. They function as intermediaries between lenders and borrowers, facilitating the transfer of resources and enhancing income. Financial markets provide capital formation for businesses and determine asset prices. Additionally, international markets encourage saving, investment, entrepreneurship, industrial development, and technological progress, all of which contribute to national economic growth and development and foster international trade.
The economist guide to the financial marketswijitha gayan
ย
This document provides an overview of financial markets and their functions. Financial markets have existed since early societies traded agricultural goods, fulfilling the same basic purposes as modern markets. All financial markets, whether organized exchanges or informal markets, serve to set prices, value assets, allow arbitrage, raise capital for businesses and individuals, facilitate commercial transactions, enable investment, and help manage risks. In 2004, total annual capital raised in financial markets worldwide excluding domestic loans was $7 trillion, while the total value of financial instruments traded was $109 trillion. Cross-border financial transactions have also grown dramatically in recent decades.
FESE Capital Markets Academy - Equity and Market DataStephenGilmore10
ย
The document provides an overview of equity and market data. It discusses key concepts related to equity trading, including the various actors (investors, banks/brokers, exchanges), how trading occurs through order books and price formation, and the infrastructure that facilitates electronic trading (matching engines, connectivity, latency). It also covers order types, exchange auctions, and the categorization of clients under MiFID II regulations.
The HKEx Hosting Services Forum focused on regulatory changes, commodities expansion, and innovation in Hong Kong's markets. Jonathan Leung highlighted growth from hosting services. Richard Leung discussed HKEx's development context including Chinese IPOs and international listings. HKEx acquired LME in 2012 to offer hedging tools to China and connect with that market. Work began on the Shanghai-Hong Kong Stock Connect after the LME acquisition. The Connect launched in November 2014 and saw increased southbound trading in April 2015, demonstrating traders' hopes.
A STUDY ON INVESTORS AWARENESS TOWARDS TRADING & SETTLEMENT AT ANGEL BROAKINGAmar Gangavane
ย
The document is a project report on a study of investor awareness towards online trading and settlements at Angel Broking. It includes an introduction, certificate of completion signed by the project guide, a declaration by the student, acknowledgements, an index of contents, lists of tables and figures. The executive summary provides an overview of the project which examines how trading companies can interface with web services to access external information sources and presents a simulation of a fictional online trading system called Portfolio Manager.
This document provides information about capital markets in Pakistan. It defines capital markets and describes the primary and secondary markets. It then discusses the role of stock exchanges in Pakistan, including the Lahore, Karachi, and Islamabad stock exchanges. It also outlines the mission, vision, objectives and functions of the Security and Exchange Commission of Pakistan (SECP) which regulates capital markets. Finally, it briefly discusses stock indices and foreign portfolio investment.
This document provides recommendations to enhance Hong Kong's role as a booking center for regional and international financial institutions. It identifies regulatory "push" factors that may push institutions to establish new booking centers and "pull" factors that could attract them to Hong Kong. While Hong Kong aims to align its standards with international benchmarks, inconsistencies remain, allowing potential regulatory arbitrage. The document recommends changes to Hong Kong's regulatory regime and capital rules to increase its competitiveness as a booking location, which could generate economic and employment benefits for Hong Kong. Authorities should balance opportunities and risks to promote Hong Kong as a stable international financial hub.
The Hong Kong Stock Exchange (HKEX) is located in Hong Kong and is Asia's third largest stock exchange. It operates stock and futures markets and is the sixth largest exchange in the world. The HKEX holds companies like The Stock Exchange of Hong Kong and the Hong Kong Futures Exchange. The benchmark stock index is the Hang Seng Index (HSI), which started tracking shares in 1969. The exchange uses an electronic order-driven trading system and operates in morning and afternoon sessions with a lunch break. Key regulators include the Hong Kong Monetary Authority and the Securities and Futures Commission. The exchange offers stocks, bonds, funds and other products for trading.
The document discusses the introduction of online trading in India by the Securities and Exchange Board of India (SEBI) to reduce uncertainty in the capital market. It aims to study the effect of this transition from an outcry to online trading system on SSKI Ltd. Specifically, the objectives are to analyze changes in trading, study SSKI's departments and functions, understand their online trading system, and examine the impact of changing technology and trends on investors, brokers, and the market. The scope is limited to reviewing SSKI's online trading procedures. It collects primary data from SSKI members and secondary data from publications. The study is confined to the past 2-3 years.
The document discusses the Qatar Financial Centre (QFC), a financial and business center established by the government of Qatar. It provides details on the QFC Authority, which oversees the commercial strategy, and the QFC Regulatory Authority, an independent financial regulator. The QFC aims to help firms generate revenue and provides access to local and regional investment opportunities. It allows 100% foreign ownership and full profit remittance outside of Qatar. The QFC Authority approves licenses for businesses and entities wishing to operate within the QFC.
The document provides an overview of the Egyptian stock market (EGX) including:
1) It describes the key products and services offered by EGX such as stocks, bonds, funds, and structured products.
2) It outlines EGX's strategy to enhance regulations, trading platforms, economic welfare, and promotional activities.
3) It summarizes the listing process and requirements for companies to be listed on EGX as well as the role of listing agents.
The document discusses foreign exchange and the foreign exchange market. It defines foreign exchange as the exchange of currencies between countries. The foreign exchange market allows currencies to be bought and sold and facilitates international trade and investment. It operates globally 24/7 through electronic networks and connects various participants such as banks, businesses, investors, and central banks.
The document provides an introduction to the global foreign exchange (forex) market. It discusses that the forex market is the largest financial market in the world, operating 24 hours a day as it spans major financial centers around the world. It has evolved from a system of connected national markets to a single global market due to deregulation, technology advances, and other factors. Major participants in the forex market include central banks, commercial banks, corporations, investment managers, hedge funds, and brokers.
The document discusses the Mongolian Stock Exchange's partnership with the London Stock Exchange Group to improve liquidity and transform the MSE into a world-class exchange. Key points include:
- The MSE signed an agreement with LSE Group in 2011 to implement regulatory reforms, new trading technologies, and training to develop Mongolia's capital markets.
- Since then, the MSE has launched new trading systems, revised rules and regulations, and provided extensive training to stakeholders.
- The partnership aims to attract more local and foreign investment by establishing international standards on the MSE and developing Mongolia as a frontier market.
The document discusses the Mongolian Stock Exchange's partnership with the London Stock Exchange Group to improve liquidity and develop Mongolia's capital markets. Key points include:
- The MSE signed an agreement with LSE Group in 2011 to implement reforms like new technology, regulations, and training.
- Since then, MSE has launched a new trading system, revised rules, and provided capital markets training.
- Statistics show Mongolia's economy and stock market have grown rapidly in recent years.
- The partnership aims to transform MSE into a world-class exchange and develop Mongolia's capital markets overall.
Commercial papers and certificate of depositDharmik
ย
1. The document provides an introduction to money markets and their role in providing short-term financing. It defines money markets as markets for lending and borrowing funds with maturity periods of up to one year.
2. The key components of money markets are discussed, including various types of short-term instruments like commercial paper, certificates of deposit, and treasury bills. Characteristics of developed versus underdeveloped money markets are also outlined.
3. The roles and importance of money markets are summarized as providing short-term financing for trade, industry, and governments while also facilitating functions of commercial banks and monetary policy implementation by central banks.
The document defines and provides details on banking and other financial services that are subject to service tax in India. Key services include financial leasing, credit cards, merchant banking, asset management, custodial and depository services, and advisory services. The value of taxable services includes fees, interest charges, and commissions. Certain exemptions apply for agreements signed prior to the July 2001 introduction of the service tax on banking and financial services.
1) The document is a dissertation analyzing the competitive strategies of three major domestic airlines in India: Indian Airlines, Jet Airways, and Sahara Airlines.
2) It includes sections on research methodology, an introduction to the Indian aviation industry, profiles of the three airlines, a comparison of their marketing strategies, an analysis of customer perceptions and preferences, and conclusions and recommendations.
3) Primary research was conducted through a customer response questionnaire and interviews with airline staff, while secondary sources included airline literature and pamphlets.
The author acknowledges Amity Business School for providing the opportunity to write a dissertation on global branding. They thank their advisor Dr. ATK Raman for guidance throughout the research. They also thank the librarian and computer lab staff for assistance during the project. The research paper helped the author learn about considerations for global branding and how it can be achieved.
This document summarizes a market research report submitted to Nokia India Pvt. Ltd. evaluating the potential of end-user services on India's 3G/WCDMA platform and possible revenue models. The report assesses which 3G services Indian consumers are interested in and willing to pay for. It identifies the main services consumers want and the preferred tariff plans through surveys and statistical analysis. The goal is to help Nokia convince mobile operators to adopt 3G/WCDMA technology by demonstrating which applications will be accepted by Indian users.
This document is a project report submitted by Kamlesh Gautam to fulfill requirements for an MBA degree. The report details a summer training project conducted at National Thermal Power Corporation Limited's Rihand Super Thermal Power Project.
The report includes certificates from Gautam's university and project supervisor validating the work. It then covers the objectives, methodology, findings and recommendations of a study analyzing the financial concurrence process for contract awards at NTPC Rihand. Key findings include the average time taken for financial concurrence of awards being 31 days and proposals for reducing this lead time and saving money.
identifying distribution gap and planning for route effiumesh yadav
ย
This document appears to be a student project report on identifying distribution gaps and planning route efficiency for Hindustan Coca-Cola Beverages in Varanasi, India. It includes certificates, acknowledgements, prefaces, and sections on distribution, direct marketing, and objectives at the firm, brand, and product line levels. The student conducted surveys of dealers and retailers to analyze distribution gaps and issues with route efficiency, such as shortages of certain bottle sizes and improper retailer visits. The goal was to identify problems and opportunities to improve Coca-Cola's distribution in the assigned areas.
This document provides an overview of a project report submitted for a Master's degree. It includes an executive summary that outlines the objectives and key findings of the research project conducted during a summer training. The research examined various aspects of the soft drink market in Ghaziabad, including the use of merchandising assets by retailers, demand for different brands, availability of brands, and packaging preferences. The document also includes sections on acknowledgements, company profile, introduction, methodology, analysis, limitations, recommendations, and conclusions.
comparative market analysis through each dealer survey aumesh yadav
ย
This document provides a history of the soft drink industry from the late 1700s to the 1960s. It describes how carbonated water became popular for its perceived health benefits and how flavors were then added, leading to the development of early soft drinks in the late 1800s like Coca-Cola, Dr Pepper, and Moxie. The soft drink industry grew in the early 1900s with new brands but faced challenges during World Wars I and II as well as the Depression. The 1960s saw the rise of diet soft drinks as saccharin and cyclamate sweeteners were introduced.
The document provides a history of Pepsi Cola from its origins in 1893 when Caleb Bradham, a pharmacist from North Carolina, began experimenting with soft drink formulations. One of his creations was called "Brad's Drink" which was later renamed Pepsi-Cola in 1898. Pepsi-Cola received its first logo that year and continued to grow, receiving trademark protection in 1903. The company established early bottling franchises and saw increasing sales throughout the 1900s while undergoing several logo changes as the brand developed.
This document provides a summary of the marketing strategies of Coca-Cola based on a research project report. It discusses Coca-Cola's history and operations in India. Coca-Cola acquired several popular Indian brands in 1993 which helped rapidly introduce its international brands. The document outlines Coca-Cola's 3A strategy to increase availability, acceptability, and awareness among consumers. It also describes some of Coca-Cola's major brands like Coca-Cola, Diet Coke, Fanta, Limca, Maaza, Sprite, and Thumps Up and the company's commitments to the Indian brands. The creative advertisements of some brands focusing on their unique tastes and personalities are also highlighted.
This document provides an overview and history of Cadbury India Ltd. It discusses Cadbury's origins in 1824 when John Cadbury opened a grocery shop in Birmingham, England. It then summarizes Cadbury's growth over the decades as it introduced new chocolate products like Dairy Milk chocolate in 1905. The document also includes sections on Cadbury's organizational structure, research methodology used for projects, and the design and development of some of its iconic chocolate brands like Dairy Milk and Milk Tray.
This document provides an overview of the casual wear market in India and the consumer decision making process for casual wear purchases. It discusses the objectives of the research project, which are to study the consumer decision making process and factors influencing purchase decisions for casual wear among 15-25 year olds in Delhi. It then provides context on the size and growth of the casual wear market in India. The document summarizes the various types of casual wear, and outlines the current market scenario, including competitive and fashion trends that influence consumers. It also gives a brief overview of the textiles industry in India.
The document is a market research report submitted by a group of students to their professor. It includes an introduction, objectives, methodology, analysis, limitations, recommendations, and conclusion regarding a survey of consumer preferences for beer in Delhi, India. The methodology section describes how the survey was conducted using standard marketing research practices on a sample of 476 households. The analysis section summarizes the findings of the report and includes cross tabulation analysis. The report aims to provide useful insights into consumer preferences to help beer companies with marketing decisions.
Working capital management is important for short-term financial decisions and liquidity. It involves managing current assets like cash, inventory, and receivables, as well as current liabilities. Inadequate working capital can cause business failure, while excessive working capital leads to idle funds. The objectives of working capital management are to determine optimal investment levels in current assets, maintain sufficient liquidity to meet obligations, and locate appropriate short-term financing sources. Efficient working capital management is vital for business solvency and continuous operations.
working capitalmgmnt. in air port authorityumesh yadav
ย
This document is a project report submitted by Manoj S. Hule for the Master of Business Administration program at Tilak Maharashtra University. The project examines the working capital management of Airports Authority of India. It includes certificates from the university and Airports Authority of India confirming the project work. The table of contents outlines chapters on the rationale for the study, objectives, company profile, theoretical framework, research methodology, data analysis, findings, limitations and expected contributions. The report aims to analyze the working capital management practices at Airports Authority of India and identify areas for improvement.
This document provides an overview of the two-wheeler industry in India. It begins with an introduction to the industry, historical development, and current state. The major players are identified as Bajaj Auto, Hero Honda, Kinetic, LML and TVS Motors. In recent years, the motorcycle segment has grown most rapidly, increasing its market share from 37% to nearly 70% currently. The objectives and parameters of the project are outlined, focusing on analyzing industry structure, major players, and their strategies through areas of management. An executive summary provides high-level details on industry trends, including increased competition leading to pricing pressures and reduced margins unless offset by volume growth.
This document provides guidance on how to better manage one's time by reducing wasted time and improving scheduling and planning. It discusses identifying responsibilities and priorities, distinguishing between urgent and important tasks, different types of tasks, and setting goals. Ways to assess current time management habits and do better include understanding what needs to be done, having a positive attitude, and starting to plan time right away. Taking the time to properly organize, prioritize and schedule tasks is presented as key to making the most effective use of the limited time available.
The document discusses the history and evolution of placement as a professional practice in rehabilitation counseling. It traces the origins of placement services to early 20th century legislation providing vocational education and rehabilitation for disabled veterans and workers. Over time, placement emerged as a distinct specialization within the field, with its own professional competencies and standards. A key development was the formation in 1964 of the Job Placement Division within the National Rehabilitation Association, recognizing placement as a unique profession. The role and importance of placement services has continued to adapt to changes in legislation, consumer expectations, and the rehabilitation field.
This document discusses the "glass ceiling effect", which refers to invisible barriers that prevent women from rising to senior leadership positions. It provides background on the origins of the term in the 1980s and examines different levels of barriers - at the apprenticeship level, within the leadership pipeline, and at the executive level where advancement seems impossible. The document explores whether barriers truly exist or if women's choices are more responsible for the lack of representation in top roles. It ultimately aims to determine if the glass ceiling is fiction or truth.
Supply chain management involves coordinating the flow of materials and information between suppliers, manufacturers, warehouses, and stores. The document discusses the key components of supply chain management including planning, sourcing, production, delivery, and returns. It also outlines the strategic and operational decisions involved in areas like location, production, inventory, and transportation that are important for managing the supply chain effectively. Overall, supply chain management is a strategic tool that can improve customer service and competitiveness by efficiently integrating all parts of the supply chain.
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART INDIA MATKA KALYAN SATTA MATKA 420 INDIAN MATKA SATTA KING MATKA FIX JODI FIX FIX FIX SATTA NAMBAR MATKA INDIA SATTA BATTA
AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
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I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
Cover Story - China's Investment Leader - Dr. Alyce SUmsthrill
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In World Expo 2010 Shanghai โ the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
Chinaโs official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expoโs official magazine distributed throughout the Expo, showcasing Chinaโs New Generation of Leaders to the World.
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
Enhancing Adoption of AI in Agri-food: IntroductionCor Verdouw
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Introduction to the Panel on: Pathways and Challenges: AI-Driven Technology in Agri-Food, AI4Food, University of Guelph
โEnhancing Adoption of AI in Agri-food: a Path Forwardโ, 18 June 2024
The report *State of D2C in India: A Logistics Update* talks about the evolving dynamics of the d2C landscape with a particular focus on how brands navigate the complexities of logistics. Third Party Logistics enablers emerge indispensable partners in facilitating the growth journey of D2C brands, offering cost-effective solutions tailored to their specific needs. As D2C brands continue to expand, they encounter heightened operational complexities with logistics standing out as a significant challenge. Logistics not only represents a substantial cost component for the brands but also directly influences the customer experience. Establishing efficient logistics operations while keeping costs low is therefore a crucial objective for brands. The report highlights how 3PLs are meeting the rising demands of D2C brands, supporting their expansion both online and offline, and paving the way for sustainable, scalable growth in this fast-paced market.
๐๐ง๐ฏ๐๐ข๐ฅ ๐ญ๐ก๐ ๐ ๐ฎ๐ญ๐ฎ๐ซ๐ ๐จ๐ ๐๐ง๐๐ซ๐ ๐ฒ ๐๐๐๐ข๐๐ข๐๐ง๐๐ฒ ๐ฐ๐ข๐ญ๐ก ๐๐๐๐๐๐๐๐โ๐ฌ ๐๐๐ญ๐๐ฌ๐ญ ๐๐๐๐๐ซ๐ข๐ง๐ ๐ฌ
Explore the details in our newly released product manual, which showcases NEWNTIDE's advanced heat pump technologies. Delve into our energy-efficient and eco-friendly solutions tailored for diverse global markets.
1. Introduction
Hong Kong is characterized by its high degree of internationalization, business-
friendly environment, rule of law, free trade and free flow of information, open and fair
competition, well-established and comprehensive financial networks, superb transport
and communications infrastructure, sophisticated support services, and a well-educated
workforce complemented by a pool of efficient and energetic entrepreneurs. Added to
these are substantial foreign exchange reserves, a fully convertible and stable currency,
and a simple tax system with low tax rates.
Hong Kong a Free Economy
Hong Kong has retained its rating as the freest economy in the world in the
2004 Index of Economic Freedom released by The Heritage Foundation, for the 10th
consecutive year. The Cato Institute in the United States, in conjunction with more than
50 economic institutes worldwide, also ranks Hong Kong as the world's freest economy.
The International Monetary Fund classifies Hong Kong as an advanced economy. Other
highly regarded institutionsโlike the World Economic Forum, the International Institute
of Management Development and the Economist Intelligence Unitโalso identify Hong
Kong as one of the world's most competitive business environments. And Hong Kong is
the best-performing host economy for foreign direct investment (FDI) in Asia, according
to the World Investment Report 2002 published by the United Nations Conference on
Trade and Development (UNCTAD).
2. Market structure
Hong Kong as a financial centre
Hong Kong is an international financial centre with an integrated network of
financial institutions and markets. The Government's policy is to maintain and develop a
sound legal, regulatory, infrastructural and administrative framework with the aims of
providing a level playing field for all market participants, maintaining the stability of the
financial and monetary systems and enabling Hong Kong to compete effectively with
other major financial centers.
A favorable geographical position, which bridges the time gap between North
America and Europe, strong links with the Mainland and other economies in South-east
Asia and excellent communications with the rest of the world have helped Hong Kong to
develop into an important international financial centre. The absence of any restrictions
on capital flows into and out of Hong Kong is another important factor.
Financial Markets
Hong Kong's financial markets are characterized by a high degree of liquidity.
They operate under effective and transparent regulations, which meet international
standards. A highly-educated workforce and ease of entry for professional staff from
overseas further contribute to the development of the financial markets.
The Banking Sector
The international financial community has a strong presence. At the end of 2003,
Hong Kong had 134 licensed banks, of which 121 were foreign-owned banks. Of the
3. world's top 100 banks, 75 have operations in the HKSAR, while 81 subsidiaries or related
companies of foreign banks operate as restricted licence banks and deposit-taking
companies. A further 87 foreign banks have local representative offices. The banking
sector's external assets are among the highest in the world.
Exchange Market
Hong Kong has a mature and active
foreign exchange market, which forms an
integral part of the global market. Links with
centres overseas enable foreign exchange
dealing to continue 24 hours a day around the
world. Hong Kong was the world's 6th largest
centre for foreign exchange trading, according
to the 2004 triennial global survey conducted by the Bank for International Settlements.
Stock Market
The stock market is one of the world's largest in terms of market capitalisation. At
the end of May 2004, 1 057 public companies were listed on the Hong Kong Exchanges
and Clearing Limited with a total market capitalisation of $5,484.4 billion (US$703.1
billion).
The stock market is the 2nd largest in Asia, behind Tokyo's. The Growth Enterprise
Market (GEM), a NASDAQ-style second board of the stock exchange, was launched in
November 1999 to provide 'start-up' companies, in particular those involved in high-tech
business, with access to equity market financing. As at May 2004, 195 companies were
listed on GEM with a total market capitalisation of $74.5 billion (US$9.55 billion). In a
pilot programme launched in May 2000, Hong Kong became the first city in Asia to offer
'live' trading on the Asian time-zone of seven leading US NASDAQ stocks.
4. The Hong Kong Foreign Exchange Market
Hong Kong has one of the largest foreign exchange (FX) markets in the world.
According to the most recent survey conducted by the Bank for International Settlements
(1996)1
, Hong Kong has overtaken Switzerland to become the fifth-largest FX market in
the world. In April 1995 Hong Kong's average daily trading volume was over 90 billion
U.S. dollars. The prominent FX market puts Hong Kong in a good position to be
recognized as one of the major international financial centers (IFCs).
The importance of the financial sector to the Hong Kong economy is well understood by
both Hong Kong and China officials. In fact, the Basic Law states that Hong Kong should
maintain its IFC status after returning to Chinese rule. Given Hong Kong's significant
position in the global FX market, a strong FX market has the ability to strengthen and
extend the role of Hong Kong as a renowned IFC. In addition, the fact that Hong Kong
enjoys IFC status means that a healthy climate exists in which to develop the FX market.
A New Generation of Trading System - AMS/3
AMS/3, the third generation of the Automatic Order Matching and Execution System, is
a new trading infrastructure developed by the Stock Exchange of Hong Kong (SEHK).
By electronic means, AMS/3 connects investors, Exchange Participants (brokers with
direct access to SEHK trading facilities) and the central market. As stock trading
becomes more electronic, investors' participation in the securities market will become
faster and more convenient. AMS/3's wide range of functions will also boost Hong
Kong's competitiveness in the world financial market.
About AMS/3
AMS/3 consists of five major components: Host System, Trading Terminals, Multi-
Workstation System (MWS), Open Gateway (OG) and Order Routing System (ORS).
5. AMS/3 Trading Terminals have more functions than the existing terminals,
but they cannot be connected to electronic trading channels such as mobile
phone or Internet.
MWS can receive electronic trading requests from investors via ORS.
Broker Supplied Systems (BSS) are trading facilities developed by
Exchange Participants themselves which capture investors' electronic
trading requests directly or via ORS.
OG connects Exchange Participants, ORS and SEHK Host System, but
investors cannot use it directly.
ORS is an electronic infrastructure developed by SEHK consisting of
6. SEHK-established Internet channel and the channel of Proprietary Network
Systems (PNS) set up by service providers. It enables investors to place
trading requests electronically through the Internet and mobile phone, which
are then routed to MWS or BSS of designated Exchange Participants.
Multiple Channels of Stock Trading
After AMS/3 rollout, investors will be able to enjoy multiple channels of placing orders
via systems and facilities provided by SEHK, Exchange Participants or service providers:
In person
Telephone
Internet
Mobile phone or other electronic devices (provided by service providers)
Faster and More Convenient Service
By increasing investors' access to the central market, AMS/3 speeds up and simplifies
stock trading.
Investors can enter, alter or cancel trading requests directly at any time via Internet or
mobile phone.
Investors can acquire the latest information about trade execution via eChannels such
as Internet or mobile phone.
Investors can obtain market information more conveniently.
MWS carries risk management functions that allow automatic endorsement by
Exchange Participants of an investor's trading request in accordance with pre-fixed
credit level. These functions enable quicker routing of trading requests to the market
for matching.
Public Key encryption/decryption technology can be used to ensure the confidentiality
of electronic trading information.
HK 6th in global foreign exchange market
7. Hong Kong has advanced one place to rank sixth in the global foreign exchange market, and
seventh in the global foreign exchange and over-the-counter derivatives market, according to
the latest Bank for International Settlements triennial survey results.
The Monetary Authority said the results are broadly in line with global trends, with Deputy
Chief Executive William Ryback adding: "The advance in Hong Kong's global ranking in
terms of foreign exchange trading is encouraging as it reinforces Hong Kong's position as a
competitive and active centre for foreign exchange and derivatives activities."
Foreign exchange up 52.9%
The survey found net daily turnover of foreign exchange transactions rose 52.9% to US$102.2
billion in 2004, compared with 2001.
Marked growth was seen in both spot and forward transactions, with the former rising 87.9%
to US$35.6 billion and the latter by 39% to US$66.5 billion.
Forwards, nonetheless, comprise a majority of the foreign exchange transactions and a large
proportion was of short maturity, less than seven days.
As expected, the Hong Kong dollar against the US dollar remained the most heavily traded
currency pair on the local market. Trading of other currency pairs also rose, reflecting the
deepening of Hong Kong's foreign exchange market.
Increased asset management activities in Hong Kong and the increase in treasury operations of
banks on the back of narrowed lending margins were probably the key factors behind the
growth. depreciation of the US dollar prompting investors to purchase non-US dollar foreign
currencies for valuation gains, also additionally contributed to the growth.
8. Although Hong Kong dollar contracts grew 97.5%, its share reduced from 59.3% to
27.7% to rank third after the US dollar and Japanese yen as contracts denominated in yen
increased strongly.
Over-the-counter derivatives up 2.6 times
Average daily net turnover of over-the-counter derivatives (both foreign exchange and
interest rate derivatives) rose by 2.6 times to US$14.9 billion.
Strong growth was seen in both foreign exchange derivatives and interest rate
instruments, particularly the latter due to growing anticipation of interest rate increases
in 2004.
In contrast to the significant rise in 2001, turnover in the Hong Kong dollar against the
US dollar shrank by 38.2% in 2004. Its share to total net turnover fell from 28.2% in
2001 to 7.2%.
On single currency interest rate derivatives, US dollar denominated contracts surpassed
Hong Kong dollar denominated contracts to represent the largest share of gross
turnover in 2004.
9. Forex market participants
Issuers
The Hong Kong Monetary Authority (HKMA) is one of the principal issuers of HKD
debt, particularly Exchange Fund Bills and Notes (EFBNs). Other significant issuers
include quasi-government institutions, supranational entities, offshore borrowers,
and local banks and corporations. Among the issuers of quasi-government debt are
the Hong Kong Mortgage Corporation, Hong Kong Airport Authority, Mass Transit
Railway Corporation and the Kowloon-Canton Railway Corporation.
Investors
Principal investors in the Hong Kong debt market include the pension fund system of
the Mandatory Provident Funds, licensed banks, authorized institutions, government-
related institutions, and individuals.
Securities Companies/ Dealers
The Hong Kong Securities and Futures Commission (HKSFC) maintains a Public
Registry of all licensed persons and institutions involved in the market. This includes
a comprehensive list of companies and individuals who are licensed dealers,
advisers, and asset managers, among others. A list of Recognized Dealers and
Market Makers of EFBNs is available at the web links below. EFBNs are traded
actively through Recognized Dealers and Market Makers.
Market Regulators
The HKMA and the HKSFC are the primary regulators of the debt market. A more
comprehensive discussion on market regulators and supervisory structures is
available under the section on Rules and Regulations.
10. Market regulations
1. General Policy Framework
Since becoming a Special Administrative Region of the Peopleโs Republic of
China on July 1, 1997, Hong Kong has continued to manage its own financial and
economic affairs, its own currency, and its independent role in international economic
organizations and agreements.
The Hong Kong Government generally pursues policies of noninterference in
commercial decisions, low and predictable taxation, government spending increases
within the bounds of real economic growth, competition subject to transparent laws
(albeit without antitrust legislation) and consistent application of the rule of law. With
few exceptions, the government allows market forces to set wages and prices and does
not restrict foreign capital flows or investment. It does not impose export performance or
local content requirements, and allows free repatriation of profits. Hong Kong is a duty-
free port, with few barriers to trade in goods and services.
Until 1998, the government regularly ran budget surpluses and thus has amassed
large fiscal reserves. The corporate profit tax is 16 percent and personal income is taxed
at a maximum of 15 percent. Property is taxed but interest, royalties, dividends, capital
gains and sales are not. In the face of a possible structural deficit, the government has
faced pressure to identify new sources of revenue. A recent Advisory Committee report
suggested 13 options to broaden the tax base including a general consumption tax, capital
gains tax and tax on interest. However, Financial Secretary Antony Leung has indicated
that none of these reforms will be implemented in the near future.
stimulus measures, including infrastructure expenditures, small tax cuts, employment
generation, and development funds for small and medium enterprises. However,
authorities generally resisted pressure for large-scale government expenditures to kick
start the economy.
One exception to this traditional laissez faire approach was the creation of a new
Innovation and Technology Commission, which in mid-2000 was given responsibility for
spearheading Hong Kongโs move to create a โknowledge basedโ economy. The
governmentโs willingness to fund technology investment reflected the widespread belief
11. that Hong Kong cannot compete in the high tech sector without targeted government
support.
Because monetary policy is tied to maintaining the nominal exchange rate linked to
the U.S. dollar, Hong Kong's monetary aggregates have effectively been demand-
determined. The Hong Kong Monetary Authority, responding to market pressures,
occasionally adjusts liquidity through interest rate changes and intervention in the foreign
exchange and money markets. The Asian financial crisis provoked a sharp economic
downturn in 1998 and the first half of 1999, but Hong Kong's economic fundamentals
remained strong, with a stable banking system, prudent fiscal policy, and massive dollar
reserves. A strong, export-led recovery in 2000 and early 2001 stalled abruptly at mid-
year, following a slump in consumer demand in the United States and Europe. The
September 11 terrorist attacks in the United States and subsequent further economic
downturn in Hong Kong's major markets have worsened the short-term outlook.
Unemployment is increasing (to around five percent) and Hong Kong will
experience recession in 2001. The local community remains concerned about Hong
Kong's long-term competitiveness in the face of challenges from mainland China. In
response to these economic difficulties, the government unveiled a series of modest
2. Exchange Rate Policies
The Hong Kong dollar is linked to the U.S. dollar at an exchange rate of HK$7.8 =
US$1.00. The link was established in 1983 to encourage stability and investor confidence
in the run-up to Hong Kong's reversion to Chinese sovereignty in 1997. PRC officials
have supported Hong Kong's policy of maintaining the link. In December 2000, the Hong
Kong Monetary Authority completed the third and final phase of the implementation of
Hong Kong's U.S. dollar payment system, which allows local firms to achieve real-time
settlement of U.S. dollar transactions. The establishment of the system is aimed at
reinforcing monetary stability.
There are no foreign exchange controls of any sort. Under the linked exchange rate,
the overall exchange value of the Hong Kong dollar is influenced predominantly by the
movement of the U.S. dollar against other major currencies. The price competitiveness of
Hong Kong exports is therefore affected by the value of the U.S. dollar in relation to third
country currencies, with Hong Kong exports suffering during periods of strong U.S.
dollar exchange rates.
12. 3. Structural Policies
The government does not have pricing policies, except in a few sectors such as
energy, which is a regulated duopoly. Even in these controlled areas, the government
continues to pursue sector-by-sector liberalization. Hong Kongโs personal and corporate
tax rates remain low and it does not impose import or export taxes. The Monetary
Authority implemented the final phase of interest rate deregulation covering savings and
current accounts in July 2001. Interest rates on all types of deposits are determined by
competitive market forces. Consumption taxes on tobacco, alcoholic beverages, and some
fuels constrain demand for some U.S. exports. Hong Kong generally adheres to
international product standards.
Hong Kong's lack of antitrust laws has allowed monopolies or informal cartels,
some of which are government-regulated, to dominate certain sectors of the economy.
These informal cartels can use their market position to block effective competition
indiscriminately but do not discriminate against U.S. goods or services in particular.
4. Debt Management Policies
The Hong Kong government has minuscule public debt. Repeated budget surpluses
have meant the government has not had to borrow. To promote the development of Hong
Kong's debt market, the government launched an exchange fund bills program with the
issuance of 91-day bills in 1990. Since then, maturities have gradually been extended up
to 10 years. In March 1997, the Hong Kong Mortgage Corporation was set up to promote
the development of the secondary mortgage market. The Corporation is 100 percent
government owned through the Exchange Fund. The Corporation purchases residential
mortgage loans for its retained portfolio in the first phase, followed by packaging
mortgages into mortgage-backed securities for sale in the second phase.
In October 2000, the government launched a partial privatization of the Mass
Transit Railway Corporation to the general public in Hong Kong and domestic and
international professional and institutional investors. The Initial Share Offer of this first-
ever Hong Kong government privatization raised about US$1.3 billion, accounting for 23
percent of governmentโs total shareholding.
Hong Kong does not receive bilateral or multilateral assistance.
13. 5. Significant Barriers to U.S. Exports
Hong Kong is a member of the World Trade Organization, but does not belong to
the WTO's plurilateral agreement on civil aircraft. As noted above, Hong Kong is a duty-
free port with no quotas or dumping laws, and few barriers to the import of U.S. goods.
Hong Kong requires import licenses for textiles, rice, meats, plants, and livestock โ
most of which are related to health standards. These licensing requirements do not have a
major impact on U.S. exports.
There are several barriers to entry in the services sector, as follows.
The government decided in May 1999 to maintain a moratorium on additional
licenses for the local fixed telecommunications network services (FTNS), now contested
by five companies, until January 2003. In January 2000, the Hong Kong government
began opening of other telecom sectors, issuing five licenses for FTNS using wireless
networks and 12 licenses for external FTNS providers using satellites. In February 2000,
the government issued Letters of Intent to 13 applicants for cable-based external
facilities, and since then at least two American companies have been licensed to land
international data cables in Hong Kong. In September 2001, the government issued four
Third Generation (3G) mobile services licenses. Under the terms of the license, 3G
operators must offer 30 percent of their network capacity to non-affiliated service
providers. The government plans to invite additional FTNS licenses by the end of 2001
and will fully open the sector effective January 1, 2003.
The Hong Kong government limits foreign ownership of free-to-air television
stations to 49 percent and imposes strict residency requirements on the directors of
broadcasting companies. In June 2000, the Legislative Council (LEGCO) passed a
Broadcasting Bill that ended the foreign ownership limit for cable broadcasters and
substantially liberalized Hong Kong's television market. By adopting a more open and
flexible regulatory framework, the bill aims to expand program choice, encourage
investment and technology transfer in the broadcasting industry, promote fair and
effective competition and spur the development of Hong Kong as a regional broadcasting
and communications hub. The Information, Technology and Broadcasting Bureau moved
quickly to exercise the new authorities granted by this bill, announcing five new
television licenses in July 2000. These new broadcasters (several of which are foreign
owned) will create new outlets for U.S. entertainment companies, which already enjoy a
14. substantial presence in the Hong Kong market.
Our bilateral civil aviation agreement does not permit code sharing and restricts the
ability of U.S. cargo and passenger airlines to carry fifth freedom traffic to and from
Hong Kong and other points. These restrictions limit the expansion of U.S. carrier
services in the Hong Kong market.
In June 2000, the LEGCO passed a Legal Practitioners (Amendment) Bill that
removed the privileges conferred on barristers from England, Scotland, Northern Ireland
and other Commonwealth countries. A Hong Kong court may admit a foreign lawyer to
practice as a barrister if he is considered a fit and proper person and has complied with
the general admission requirements, including passing any required examinations.
Foreign law firms are barred from hiring local lawyers to advise clients on Hong Kong
law, even though Hong Kong firms can hire foreign lawyers to advise clients on foreign
law. Foreign law firms can become "local law firms" and hire Hong Kong attorneys, but
they must do so on a 1:1 ratio with foreign lawyers.
Foreign banks established after 1978 are permitted to maintain only three branches
(automated teller machines meet the definition of a branch). The Hong Kong Monetary
Authority has promised to consider further relaxation of this limit in 2001. In the
meantime, foreign banks can acquire local banks that have unlimited branching rights.
6. Export Subsidies Policies
The Hong Kong Government neither protects nor directly subsidizes manufacturers
who export. It does not offer exporters preferential financing, special tax or duty
exemptions on imported inputs, resource discounts, or discounted exchange rates.
The Trade Development Council, a quasi-governmental statutory organization,
engages in export promotion activities and promotes Hong Kong as a hub for trade
services. The Hong Kong Export Credit and Insurance Corporation sells insurance
protection to exporters.
15. 7. Protection of U.S. Intellectual Property
The Berne Convention for the Protection of Literary and Artistic Works, the Paris
Convention on Industrial Property, and the Universal Copyright Convention (Geneva,
Paris) apply to Hong Kong by virtue of Chinaโs membership. Hong Kong, a WTO
member, passed a new Copyright Law in June 1997 and a modernized Trademark Law in
May 2000. Enforcement of copyright and trademarks has improved measurably in recent
years, but eliminating intellectual property piracy will require sustained effort.
Copyrights: Sale of pirated discs at retail shopping arcades is much less widespread
than it used to be but remains a problem. The United States has encouraged the
government at senior levels to crack down on this retail trade, and on the distributors and
manufacturers behind them. Hong Kong has responded by doubling Customsโ
enforcement manpower, conducting more aggressive raids at the retail level, passing new
legislation and engaging in public education efforts to encourage respect for intellectual
property rights. Recent raids have closed down some of the most notorious retail arcades
and dispersed this illicit trade. In the first eight months of 2001, Customs seized 5.79
million pirated optical discs with a market value of US$14.1 million, and arrested 1,049
people. Hong Kong Customs intelligence operations and raids on underground
production facilities have shut down most pirate manufacturing and forced retailers to
rely increasingly on smuggled products. The judiciary has also begun to increase
sentences and fines for copyright piracy, handing down 524 piracy-related jail sentences
in the first half of 2001.
With the government's success against optical disc pirates, increasing attention has
turned to the problem of computer end-user piracy. In 1999, Hong Kong courts handed
down a first conviction for unauthorized dealer hard-disk loading. The LEGCO also
passed in June 2000 an IPR miscellaneous amendments bill which makes it clearly illegal
for companies to use unlicensed software in trade or business. Faced with intensive
public criticism of the new criminal provisions for photocopying newspapers and
magazine articles, the LEGCO passed a bill in June 2001 to suspend criminal provisions
for unauthorized copying of materials other than computer programs, movies, television
dramas and music. The bill also suspended criminal penalties for the use of parallel-
import computer software. The suspension is an interim arrangement expiring on July 31,
2002. The government will consult the community with a view to formulating a long-
term solution before then.
16. Broadcast satellite signal piracy is also a growing concern for U.S. companies, and
industry associations have asked the government to take action against pubs and other
public venues that use satellite signals without compensation.
Trademarks: Sale of counterfeit items, particularly handbags and apparel, is
widespread in Hong Kongโs outdoor markets. Customs officials have conducted
numerous raids, but these actions have had little impact on the overall availability of
counterfeit goods.
New Technologies: U.S. industry associations report that Hong Kong-based web
sites are being used to sell and transmit pirate software and music. Since April 2000,
Hong Kong Customs has raided nine establishments believed to be engaged in Internet
piracy. None of these cases has gone to court, but these raids put Hong Kong well ahead
of its neighbors in tackling the problem of Internet-based piracy.
Hong Kong's stepped-up IPR enforcement effort has helped to reduce estimated
losses to U.S. film and music companies. The Business Software Alliance reported in
May 2001 that software piracy in Hong Kong rose from 56 percent in 1999 to 57 percent
in 2000. However, estimated total losses for the software industry decreased from
US$88.6 million to US$86 million. U.S. film and music distributors also report
increasing levels of legitimate sales in Hong Kong.
8. Workers Rights
a. The Right of Association: Local law provides for right of association and the right of
workers to establish and join organizations of their own choosing. Trade unions must be
registered under the Trade Unions Ordinance. The basic precondition for registration is a
minimum of seven persons who serve in the same occupation. The government does not
discourage or impede the formation of unions Workers who allege antiunion
discrimination have the right to have their cases heard by the Labor Relations Tribunal.
Violation of antiunion discrimination provisions is a criminal offense. Although there is
no legislative prohibition of strikes, in practice, most workers must sign employment
contracts that state that walking off the job is a breach of contract and can lead to
summary dismissal.
17. b. The Right to Organize and Bargain Collectively: In June 1997, the Legislative Council
passed three laws that greatly expanded the collective bargaining powers of Hong Kong
workers, protected them from summary dismissal for union activity, and permitted union
activity on company premises and time. However, the Provisional Legislature repealed
these ordinances, removing workersโ new statutory protection against summary dismissal
for union activity. Legislation passed in October 1997 permits the cross-industry
affiliation of labor union federations and confederations, and allows free association with
overseas trade unions (although notification of the Labor Department within one month
of affiliation is required), but removed the legal stipulation of trade unionsโ right to
engage employers in collective bargaining and banned the use of union funds for political
purposes. Collective bargaining is not widely practiced.
c. Prohibition of Forced or Compulsory Labor: Compulsory labor is prohibited under
the Bill of Rights Ordinance. While this legislation does not specifically prohibit forced
or bonded labor by children, there are no reports of such practices in Hong Kong.
d. Minimum Age for Employment of Children: The "Employment of Children"
Regulations prohibit employment of children under age 15 in any industrial
establishment. Children ages 13 and 14 may be employed in certain non-industrial
establishments, subject to conditions aimed at ensuring a minimum of nine years of
education and protecting their safety, health, and welfare. In 2000, there were three
convictions for violations of the Employment of Children Regulations.
e. Acceptable Conditions of Work: Aside from a small number of trades and industries in
which a uniform wage structure exists, wage levels are customarily fixed by individual
Agreement between employer and employee and are determined by supply and demand.
Some employers provide workers with various kinds of allowances, free medical
treatment and free Subsidized transport. There is no statutory minimum wage except for
foreign domestic workers (US$500 per month). To comply with the Sex Discrimination
Ordinance, provisions in the Women and Young Persons (Industry) Regulations that had
prohibited women from joining dangerous industrial trades and limited their working
hours were dropped. Work hours for people aged 15 to 17 in the manufacturing sector
remain limited to 8 per day and 48 per week between 6 a.m. and 11 p.m. Overtime is
prohibited for all persons under the age of 18 in industrial establishments. Employment in
dangerous trades is prohibited for youths, except 16 and 17 year old males.
18. The Labor Inspectorate conducts workplace inspections to enforce compliance with these
and health and safety regulations. Worker safety and health has improved, but serious
problems remain, particularly in the construction industry. In 2000, a total of 58,092
occupational accidents (33,652 of which are classified as industrial accidents) were
reported, of which 199 were fatal. Employers are required under the Employeeโs
Compensation Ordinance to report any injuries sustained by their employees in work-
related accidents.
f. Rights in Sectors with U.S. Investment: U.S. direct investment in manufacturing is
concentrated in the electronics and electrical products industries. Aside from hazards
common to such operations, working conditions do not differ materially from those in
other sectors of the economy. Relative labor market tightness and high job turnover have
spurred continuing improvements in working conditions as employers compete for
available workers.
19. Forex market activities of the treasuries, reserve,
government
GDP (purchasing
power parity): $254.2 billion
GDP (official
exchange rate):$181.6 billion
GDP - real growth
rate:7%
GDP - per capita:
purchasing power parity - $36,800
GDP - composition
by sector:agriculture: 0.1%
industry: 10%
services: 89.9%
Inflation rate
(consumer prices):0.9%
Investment (gross
fixed):21.2% of GDP
Budget:
revenues: $31.31 billion
expenditures: $32.3 billion, including capital expenditures of $5.9 billion (2005
est.)
Public debt:
1.8% of GDP
Current account
balance:$23.85 billion
Exports:
$286.3 billion f.o.b., including reexports
Exports - partners:
China 44%, US 17%, Japan 5.3%
Imports:
$291.6 billion
20. Imports - partners:
China 43.5%, Japan 12.1%, Taiwan 7.3%, US 5.3%, Singapore 5.3%, South
Korea 4.8%
Reserves of
foreign exchange
and gold:
$122.3 billion
Debt - external:
$416.5 billion
Currency (code):
Hong Kong dollar (HKD)
Exchange rates:
Hong Kong dollars per US dollar - 7.79 (2005), 7.788 (2004), 7.7868 (2003),
7.7989 (2002), 7.7988 (2001)
Fiscal year:
1 April - 31 March
People's Republic of China, Hong Kong Special Administrative Region:
Selected Economic and Financial Indicators
2002 2003 2004 2005 2006
Proj.
21. Real GDP (percent change) 1.8 3.1 8.2 7.0 5.5
Real domestic demand
(contribution)
-0.7 0.1 4.5 1.8 2.0
Foreign balance (contribution) 2.5 3.1 3.7 5.2 3.5
Inflation (percent change)
Consumer prices -3.0 -2.6 -0.4 1.2 1.5
GDP deflator -3.5 -6.4 -3.3 -0.5 1.3
Employment (percent change) -0.6 -0.4 2.8 3.8 3.0
Unemployment rate (percent) 7.3 7.9 6.8 5.4 3.8
Real wages 1.3 0.2 -1.2 ... ...
Government budget (percent
of GDP) 1/
Revenue 13.9 16.8 20.4 18.6 17.9
Expenditure 18.7 20.1 18.8 18.6 17.8
Consolidated budget balance -4.8 -3.3 -0.3 0.0 0.1
External balances (in billions of
US$)
Merchandise trade balance -5.1 -5.8 -9.3 -4.5 -0.8
(In percent of GDP) -3.1 -3.6 -5.6 -2.6 -0.4
Current account balance 12.4 16.5 16.4 17.8 19.2
(In percent of GDP) 7.6 10.4 9.6 10.2 10.3
Foreign exchange reserves
22. Foreign exchange reserves (in
billions of US$, end of period)
111.9 118.4 123.6 123.8 124.8
(In percent of GDP) 68.4 74.5 74.4 70.8 66.8
Currency
1 Hong Kong dollar (HK$) = 100 cents
Exchange rates: Hong Kong dollars per US dollar - 7.799 (April 2005), 7.798 (January
2002), 7.7994 (2001), 7.7918 (2000), 7.7589 (1999), 7.7462 (1998), 7.7425 (1997); note -
the Hong Kong dollar is linked to the US dollar at a rate of about 7.8 Hong Kong dollars
per US dollar
The future of Hong Kong
At the start of the 21st century, the HKSAR Government has undertaken a review
of Hong Kong's long-term development strategies, partly to cope with the changes and
capitalise on the opportunities arising from the reunification with the Mainland, and
partly in response to the many challenges in the face of globalisation and the emergence
of a knowledge-based economy. The review follows a two-year study by the Commission
on Strategic Development which encompasses a vision and a strategic framework for
Hong Kong to become, not only a major city in China, but also Asia's world city.
23. Asia's Cyber City for the Cyber Century
Hong Kong has set itself on course to become the centre for innovation and
technology in East Asiaโa cyber city in the cyber century. Much is being done to realise
this goal and to capitalise on the enormous opportunities thrown up by the information
revolution.
Cyberport
Cyberport โ Hong Kong's IT flagship โ is a HK$15.8 billion (US$2 billion)
landmark project managed by Hong Kong Cyberport Management Company Limited and
owned by the HKSAR Government. It is creating an interactive environment that will be
home to a strategic cluster of more than 100 information technology (IT) companies and
more than 10 000 IT professionals. This clustering of local and overseas companies and
professional talent is envisioned as a catalyst and hub for the growth of local and regional
IT industries, with particular emphasis on IT applications, information services and
multimedia content creation. Cyberport will also provide IT education for the broader
24. community. Cyberport represents a commitment on the part of the Government of the
HKSAR to facilitate Hong Kong's development as a leading digital city in the region. The
project is being developed on a 24-hectare site at Telegraph Bay in the southern district
of Hong Kong Island. Cyberport is being completed in phases extending through 2004,
and when complete will feature 100 000 square metres of 'intelligent' office space.
Science Park
The Science Park aims to establish and nurture a world-class technology
community dedicated to applied research and development. It is being developed along a
clustering concept, with four clusters of electronics, IT and telecommunications,
biotechnology and precision engineering. The first phase of the Science Park opened in
June 2002. Phase II of the Science Park is to be completed by the end of 2007.
Infrastructure Projects for the 21st Century
An efficient and reliable infrastructure has played a key role in maintaining Hong
Kong as a leading trade, finance, business and tourism centre in the region. Infrastructure
development enables us to meet demands arising from population growth and help
support our economic and trade development.
The HKSAR Government continues to invest heavily in capital works projects. It
plans to spend under the Capital Works Programme an average of $29 billion (US$3.7
billion) per year for the next 5 years.
Railway Development
Further to the commissioning of West Rail in December 2003, four new railways
are scheduled for completion between 2004 and 2007. Both the Tsim Sha Tsui Extension,
which will provide a second rail interchange between the KCR and the MTR systems,
and the Ma On Shan Rail, which will connect new towns in the eastern parts of Hong
Kong with the urban areas, will be completed by 2004. The Penny's Bay Rail Link
connecting Sunny Bay with Disneyland on Lantau Island is expected to be completed in
2005. A new rail passenger boundary crossing at Lok Ma Chau connecting Huanggang in
Shenzhen is expected to be completed before mid-2007.
The 'Railway Development Strategy 2000' provides a blueprint for Hong Kong's
rail network expansion up to 2016 or so. This involves a total investment of some $100
billion to complete five new passenger rail projects (the Kowloon Southern Link (KSL),
25. Shatin to Central Link (SCL), Island Line Extensions (ILE), Northern Link (NOL), and
Regional Express Line (REL)) and a Port Rail Line for freight. Upon their completion,
Hong Kong's rail network will expand by some 40 per cent to over 250 kilometres. The
railways' share of the public transport system will be boosted from 30 per cent to about
40 per cent.
New Urban Development
The West Kowloon Reclamation project was completed in 2003. The reclamation
has provided about 340 hectares of land to house a planned population of about 190 000.
At the southern tip of the reclamation, another major development proposal is the West
Kowloon Cultural District (WKCD), which is currently under active planning. The
intention is to develop the area into an arts, cultural, commercial and entertainment
district with a distintive identity. The Government has invited proposals internationally
for development of the WKCD.
The Outline Zoning Plan to guide redevelopment of the former Kai Tak Airport site was
approved in June 2002. In view of a recent court ruling on reclamation in Victoria
Harbour, a comprehensive review of the current development scheme will be carried out
to ensure its compliance with the legal requirements. The review which covers the
planning and engineering aspects, is expected to take two years. It will include extensive
public involvement to gauge the community's wishes for this major waterfront site and to
help build public consensus on revising the development scheme.
Road Projects
New strategic roads will alleviate urban congestion and provide vital new links
into the New Territories and beyond. Among the major road projects are the Hong Kong-
Shenzhen Western Corridor, Deep Bay Link and Route 8 including the Stonecutters
26. Bridge.
The 1 596-metre Stonecutters Bridge, with a main span of 1 018m, will be the
longest cable-stayed bridge in the world. It is the first long-span bridge located in an
urban environment in Hong Kong and will be highly visible from Hong Kong Island and
Kowloon Peninsula. The bridge design was adopted from the winning design of an
international competition in 2000 which elicited participation from the best design and
engineering firms in the world.
This bridge is an important part of Route 8 between Tsing Yi and Sha Tin. On
completion of the works in mid-2008, Hong Kong will be adding an east-west strategic
route linking the eastern part of the New Territories to the airport. This new highway will
provide direct access to Container Terminals No 8 and No 9 in Kwai Chung, which will
further enhance Hong Kong as an important international logistics and transportation hub
Conclusion
The economy of Hong Kong has often been cited by people such as Milton Friedman and
the Cato Institute as an example of the benefits of laissez-faire capitalism. Many analysts
believe that this characterization of the Hong Kong economy is not entirely accurate, as
the Hong Kong government, both under British and Chinese rule, have occasionally
intervened in the economy.
27. โ
Frequently Asked Questions about Hong Kong Forex market
Q1 What channels are there for investors to place orders after the full
implementation of AMS/3?
A1 The channels available depend on the type of trading facility used by the Exchange
Participant of an investor. If trading is conducted via a trading terminal which cannot
be connected to other eChannels, investors will have to place orders with the
Exchange Participant by telephone or in person. If the Exchange Participant adopts
Multi-Workstation System (MWS) or Brokers Supplied System (BSS), an investor
can opt for any channel provided by the Exchange Participant to place his order
(traditional method or the Internet/mobile phone). Since BSS are developed by
28. Exchange Participants or suppliers, services vary and investors should select
Exchange Participants that suit their needs.
Q2 Is online trading faster than the traditional method of placing orders?
A2 In normal cases, online trading serves investors faster. However, as the experience of
most Internet users indicates, there is always the possibility of congestion of Internet
lines resulting in delays in trading which is something SEHK cannot control.
Q3 Is it possible for an investor to input trading requests via ORS after trading
hours? Will BSS of Exchange Participants continue to receive trading
instructions after market close?
A3 Technically, ORS can support the input of trading requests after market close.
However, actual ORS operating hours depend on market needs. Exchange
Participants decide on their own whether their BSS will continue to entertain trading
requests after market close.
Q4 How do investors place orders online via SEHK's Internet channel?
A4 Before trading shares, investors should first apply to Hongkong Post for an e-
certificate and register with their Exchange Participants. The Exchange Participant
will record the e-certificate number of an investor in ORS to provide identity
authentication during online trading. An investor who owns more than one securities
account needs only one e-certificate, but he/she is required to register with Exchange
Participants separately for the use of ORS. An investor who has accounts in more
than one Exchange Participant should select his preferred Exchange Participant in
the SEHK web page for securities transactions before entering his trading request.
Web pages of some Exchange Participants are connected to the SEHK web page for
securities transactions to collect investors' trade requests.
SEHK's Internet channel aside, web facilities provided by Proprietary Network
System (PNS) vendors, such as the Internet, mobile phone, or PDA palm computer,
may also be used by investors to enter order instructions. Order instructions placed
via these means should first be verified and approved by an Exchange Participant
before they can be routed to the market for matching.
Q5 How can investors be prevented from inputting wrong trading requests
accidentally during online trading?
A5 SEHK cannot prevent investors' input errors. SEHK will strengthen its investor
education programme by organising a series of public seminars and producing
29. investor educational material. As trading requests have to go through an Exchange
Participant before being routed to the central trading system, Exchange Participants
will continue to perform advisory and risk management functions after the launch of
AMS/3.
Q6 How can online securities accounts be protected from embezzlement?
A6 SEHK's Internet channel adopts the latest Internet technology to offer investors a
security-tight online trading environment and make use of accredited e-certificates to
ensure the integrity and confidentiality of trades. Before trading securities online,
investors should apply to Hongkong Post for an e-certificate. By means of Public
Key Infrastructure which encrypts and verifies investors' identity and online trade
information, an e-certificate protects investors' interests from being infringed by
eavesdropping, tampering, forgery and other misconducts. Investors should note that
as BSS and PNS are developed by Exchange Participants and PNS vendors, not all
their facilities adopt these security measures.
Q7 Will an investor still be required to trade shares via an Exchange Participant
after the launch of AMS/3?
A7 Yes. Before dealing in shares, an investor is required to open an account with an
Exchange Participant. Whichever channel an investor chooses, his trading
instructions should first be verified and approved by an Exchange Participant before
it is routed to the market for matching. Exchange Participants will continue to play
an advisory and verification role after AMS/3 has come into service.
Q8 What impact will electronic trading have on brokerage commission?
A8 The level of brokerage commission is a matter of commercial arrangement between
Exchange Participants and their clients. SEHK's minimum brokerage rule will still
apply after implementation of AMS/3. Brokerage commission will remain 0.25 per
cent of the value of the transaction with a minimum of HK$50. The minimum
brokerage rule is scheduled for abolition on 1 April 2002 after which commission
will be fully negotiable between Exchange Participants and clients.
Q9 Will the new trading system be insured? Will SEHK compensate investors or
market participants for losses caused by AMS/3 defects?
A9 Due diligence will be exercised to ensure the normal functioning and operation of
AMS/3. According to the Exchanges and Clearing Houses (Merger) Ordinance,
30. SEHK is not liable for anything done or omitted to be done in good faith. SEHK has
developed a set of contingency arrangements, including the switch of AMS/3
primary site to AMS/3 backup site in case of hardware failure and, in the event of
emergencies in the first two weeks of its launch, a fallback to AMS/2.