FINANCIAL AND MONETARY AFFAIRS
The work of the Official Receiver where he acts as trustee or liquidator includes the investigation of the affairs of the bankrupt or the wound-up company, the realisation of assets and the distribution of dividends to creditors. The Official Receiver also prosecutes certain offences set out in the Bankruptcy and Companies Ordinances. In addition, he supervises the work of outside liquidators and trustees, and monitors the funds held by liquidators in compulsory and voluntary liquidations.
During the year, the High Court made 306 receiving orders and 426 winding-up orders, a decrease of 0.68 per cent over the previous year. The assets realised by the Official Receiver during 1994 amounted to $101.84 million, while $62.57 million in dividends were paid to creditors in 232 insolvency cases. A total of 77 summonses were issued and 72 convictions obtained. The total amount of fines imposed by the magistrates' courts was $548,380.
Hong Kong Monetary Authority
To maintain the continuity and professionalism in Hong Kong's monetary and reserves management and banking supervision, in a way that commands the confidence of the people of Hong Kong and the international financial community, the HKMA was established in April 1993 by merging the Office of the Exchange Fund with the Office of the Com- missioner of Banking. The Exchange Fund (Amendment) Ordinance 1992 provided for the establishment of the HKMA.
The HKMA is responsible for the development and execution of monetary policy; maintenance of exchange rate and monetary stability; the development of the debt market in Hong Kong; promoting the efficiency, integrity and development of payment and settle- ment arrangements; managing the assets of the Exchange Fund; prudential supervision of authorised institutions under the Banking Ordinance; and formulating policies relating to banking supervision. These functions are carried out by its five departments: the Monetary Management Department, Reserves Management Department, Banking Policy Department, Banking Supervision Department and External Department. The latter was set up in 1994 to develop contacts and co-operation with other central banks and multilateral financial institutions, to strengthen the HKMA's research capabilities and to monitor international monetary developments.
The HKMA is an integral part of the government, but is able to employ staff on different terms to those of the civil service to attract personnel of the appropriate experience and expertise. The staff and operating costs of the HKMA are charged directly to the Exchange Fund, instead of the general revenue.
The HKMA is accountable to the Financial Secretary, who is advised by the Exchange Fund Advisory Committee on matters relating to the control of the Exchange Fund. The involvement of the committee in respect of monetary and investment matters has become much stronger. It functions very much like a management board, meets monthly and advises the Financial Secretary on, among other things, the annual budget of the HKMA.
Monetary Policy
A linked exchange rate system was introduced on October 17, 1983, after a period of volatility in the exchange rate of the Hong Kong dollar. Under the system, certificates of
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