ENG-2004 — Page 139

Financial and Monetary Affairs | 109

dividends was paid to creditors in 2 054 insolvency cases. There were 1 092 cases assigned under the scheme for contracting out of summary winding-up cases.

The Bankruptcy (Amendment) Bill 2004 was introduced into the Legislative Council in October 2004 to facilitate the Official Receiver to outsource summary bankruptcy cases to private-sector insolvency practitioners and make other minor miscellaneous amendments. The Bill aims to set up an outsourcing regime similar to the one in the Companies Ordinance for summary company liquidation cases. Upon passage of the Bill, the Official Receiver will have the authority to directly appoint a private-sector insolvency practitioner to administer summary bankruptcy cases (where the value of the bankrupt's estate is unlikely to exceed $200,000) without the need to convene a creditors' meeting. As at the end of 2004, the Bill is being scrutinised by the Legislative Council.

Professional Accountancy

Hong Kong had 22 839 certified public accountants at year-end. Of these, 3 367 were certified public accountants (practising), who are in public practice and entitled to perform statutory audits. There were 1 108 firms of certified public accountants (practising) and 164 corporate practices registered at year-end.

Pursuant to the Professional Accountants (Amendment) Ordinance 2004, enacted by the Legislative Council in July 2004, the Hong Kong Society of Accountants was renamed the Hong Kong Institute of Certified Public Accountants in September 2004. The HKICPA is vested under the Professional Accountants Ordinance with a wide range of responsibilities, such as registering certified public accountants; maintaining financial reporting, auditing and ethical standards for the profession; and conducting training programmes and examinations to qualify certified public accountants.

In addition, the Professional Accountants (Amendment) Ordinance 2004 has, among other things, reformed the governance structure of the HKICPA, thereby enhancing the transparency and independence of the regulation of the profession. Under the new structure, the Chief Executive is empowered to appoint four lay members to the Council of the HKICPA, and at least 18 lay members each to the Disciplinary Panel and Investigation Panel of the HKICPA. Together with the proposal to establish the FRC, the regulatory regime for the accountancy profession will be strengthened to safeguard the public interest.

Monetary Policy

Hong Kong's monetary policy objective is to maintain currency stability. Given the highly externally oriented nature of the Hong Kong economy, this objective is further defined as a stable external value of the currency of Hong Kong, in terms of its exchange rate in the foreign exchange market against the US dollar at around HK$7.80 to US$1. This clear monetary policy objective is achieved through the linked exchange rate system, which was introduced in October 1983 after a nine-year period during which the Hong Kong dollar floated and the exchange rate was volatile.