ENG-1996 — Page 136

FINANCIAL AND MONETARY AFFAIRS

In 1997, the HKMA will issue a $1,000 gold coin and a set of seven circulation coins to commemorate the establishment of the Hong Kong Special Administrative Region. The set of seven coins, each with its own special design, will be in the same denominations as the seven currently circulating coins. The new set of coins is for general circulation and will be available during the first half of 1997.

Banknotes issued by the three note-issuing banks are printed in Hong Kong by the Hong Kong Note Printing Ltd. The HKMA acquired this printing plant from De La Rue plc of the UK in 1996 on behalf of the government and is now responsible for the operation and management of the plant. The acquisition will let the government have closer involvement in the production of Hong Kong dollar currency notes, which is consistent with the responsibilities vested in it under the Legal Tender Notes Issue Ordinance and the Basic Law. The acquisition has no impact on the present note issue mechanism in Hong Kong.

On December 31, 1995, the fund's total assets stood at $461 billion, of which foreign currency assets amounted to US$55 billion. Accumulated earnings amounted to $160 billion. The fund's financial position for the six years from 1990 to 1995, inclusive, is shown at Appendix 17. With a view to showing the government's continued commitment to greater openness and transparency, and to providing the public with more evidence of the considerable strength of Hong Kong's external position, foreign reserves figures are made available on a quarterly basis during the year and figures from January 1997 onwards will be released on a monthly basis. Based on unaudited figures, the fund's total assets stood at $485 billion and its accumulated earnings amounted to $162 billion as at June 30, 1996. Foreign currency assets, excluding forward transactions to be settled, amounted to US$63.8 billion at December 31.