IMF Released "Report on the Observance of Standards and Codes" on Hong Kong

The International Monetary Fund (IMF) released its "Report on the Observance of Standards and Codes" on Hong Kong on 21 September. This Report is the outcome of a series of pilot studies, initially known as "Reports on Transparency Practices" or "Transparency Reports", conducted by the IMF to review an economy's transparency practices against prevailing international standards.

The Report commends Hong Kong for achieving a high degree of transparency in the four areas assessed, namely, data dissemination, fiscal policy, monetary and financial policies and banking supervision. In addition, the Report also provides a summary of Hong Kong's self-assessment in four non-core areas securities market regulation, insurance regulation, accounting practices and auditing practices.

The Report notes that the Hong Kong SAR Government considers transparency in the policy-making framework and regulatory practices to be central to successful economic management and that is reflected in their approach to many of the issues discussed in the Report.

"We are pleased that the International Monetary Fund has reaffirmed that Hong Kong's financial markets are underpinned by a transparent, rule-based policy framework in line with international practices," said Mr. Donald Tsang, the Financial Secretary.

The Report was prepared by the IMF to assist the authorities in individual economies to identify areas where transparency can be enhanced further, and to provide information on the extent to which economies observe internationally recognised standards and codes. Hong Kong was among the first batch of economies (including the UK, Australia and Argentina) participating in the IMF's pilot studies in February 1999. The Hong Kong Monetary Authority, in co-ordination with the Finance Bureau, Financial Services Bureau, Securities and Futures Commission, Office of the Commissioner of Insurance, and Hong Kong Society of Accountants, completed a questionnaire and a self-evaluation report in May 1999. The IMF staff then visited Hong Kong in June 1999 to discuss with relevant government offices and the private sector our transparency practices for the preparation of this Report.

The full report is available here ¹.

Hong Kong Monetary Authority

22 September 1999

1.Additional information can be found on the IMF's website (http://www.imf.org/) under "Standards and Codes".