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Financial and Monetary Affairs
which shall focus specifically on carrying on securities investment advisory business. The Hong Kong securities company's shareholding could be no more than 49 per cent of the total shareholding of such a joint venture securities investment advisory company; and
(c) Accounting: Hong Kong professionals who have obtained the Chinese Certified Public Accountants qualification are allowed to become partners of partnership firms in Qianhai on a pilot basis; and the documentation requirements will be simplified for applications by Hong Kong accounting firms to conduct business on a temporary basis in the Mainland.
Banking Sector
Main Features
Hong Kong maintains three tiers of deposit-taking institutions: licensed banks (LBs), restricted licence banks (RLBS) and deposit-taking companies (DTCs)8. They are known collectively as 'authorised institutions' (Als) under the Banking Ordinance and are licensed by the HKMA.
Hong Kong has one of the highest concentrations of banking institutions in the world. At the end of 2012, there were 155 LBs, 21 RLBS and 24 DTCs. These 200 Als maintained a network of more than 1,400 local branches. There were also 60 representative offices of banks incorporated outside Hong Kong.
Hong Kong Monetary Authority
The HKMA was established in 1993 and its policy objectives are to maintain currency stability within the framework of the linked exchange rate system through sound management of the Exchange Fund, monetary policy operations and other means deemed necessary; to promote safety and stability of the banking system through the regulation of banking business, the business of taking deposits and the supervision of Als; and to promote efficiency, integrity and development of the financial system, particularly the payment and settlement arrangements.
The HKMA is an integral part of the Government, but can employ staff on terms that differ from those of the civil service to attract personnel of the appropriate experience and expertise. The HKMA is accountable to the Financial Secretary, who is advised by the Exchange Fund Advisory Committee on investment policies and strategies for the Exchange Fund and on projects that are charged to the Exchange Fund, such as the development of financial infrastructure.
The Banking Advisory Committee and the Deposit-taking Companies Advisory Committee are established under the Banking Ordinance to give advice on relevant policy matters. They are
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Only LBs may conduct full banking services, including in particular the provision of current and savings accounts and acceptance of deposits of any size and maturity. RLBS may take deposits of any maturity of $500,000 or above. DTCs may take deposits of $100,000 or above with an original maturity of at least three months.
The Banking Ordinance provides the legal framework for banking supervision in Hong Kong. Under the ordinance, the HKMA is the licensing authority responsible for granting and revoking the authorisation of all Als, and the approval and revocation of money broker licences.
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