The HKMA has just published the first in a series of Half-Yearly Monetary and Financial Stability Reports. The Report assesses in detail the factors affecting Hong Kong's monetary and financial stability.
The HKMA's policy objectives centre on maintaining Hong Kong's monetary and financial stability. An important part of our work towards achieving these objectives consists of detailed monitoring of - and research into - the economic, market and geopolitical forces that have a bearing on that stability. In accordance with our policy of transparency, a great deal of our research is made public, in the form of regular published reports and special studies published in the HKMA Quarterly Bulletin and on our website. This week we introduce a substantial new addition to this body of published research with the release of the HKMA's first Half-Yearly Monetary and Financial Stability Report. This Report will appear as a special feature in the December and June editions of the HKMA Quarterly Bulletin. We expect that this detailed document - some 40 or so pages, in both English and Chinese - will become an important reference tool for anyone with an interest in Hong Kong's monetary and financial affairs.
The focus of the Half-Yearly Report is monetary and financial stability in Hong Kong. However, given Hong Kong's position as an entirely open international financial centre, the influences on our monetary and financial system are broad and complex. The Report therefore begins by examining the global and regional forces that have, or may have, an impact on Hong Kong. It then moves, in part 2, to the macroeconomy of Hong Kong, before narrowing in, in part 3, on the performance of Hong Kong's monetary and financial systems in the preceding half year. The final section of part 3 considers the outlook for the global and domestic economies in the light of Consensus Forecast and other information, and assesses the risks and vulnerabilities relevant to Hong Kong's monetary and financial stability.
So much for the bare outline. The real value of the Report lies, of course, in its detail, and in pulling together the full range of the HKMA's research work into a single, coherent survey of the past six months. We have paid particular attention to presentation. The aim has been to achieve clarity and precision - and to avoid unnecessary jargon - in the writing of the report. No fewer than 80 coloured charts and tables are provided in parallel with the text. Our hope is that the Report - perhaps more than any of our other research output - will be read by everyone with an interest in Hong Kong's monetary and financial systems, and not just by experts and specialists.
The Half-Yearly Report presents the HKMA's view of the main forces acting upon Hong Kong's monetary and financial systems over the previous six months. We hope that the Report will complement the important work carried out by the Government Economist and his staff: his focus is on economic issues and economic development in the round; ours, more narrowly, is on the macro-economic and market forces that have a bearing on our key objectives of maintaining monetary and financial stability. What the Report does not attempt to do is to present the HKMA's forecasts for the future: although we take due account of other people's forecasts, including those of the Government Economist, the HKMA is not in the business of making predictions. Nor - in answer to those of our readers who have lively imaginations - does this report amount to a proto-central bank inflation report, signifying a contemplated change in Hong Kong's monetary policy objective. The Report is simply an attempt to set out our understanding of what is going on in the world and how this affects our work.
It is important in regular publications of this kind to maintain consistency of structure, detail and presentation. For this reason a great deal of thought and planning has gone into the format and style of the Half-Yearly Report. This does not, of course, mean that there is no room for improvement or development. As always, we welcome comments and suggestions from readers, and we look forward to hearing what you think of this new product.
Joseph Yam
18 December 2003
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