Reborn Capital Madman

The fierce debate surrounding the improved currency board system and independent operation of the Exchange Fund advocated by Gao Xian was a battle for every inch of land, and no blind spot was missed.

Simply speaking, taking the exchange rate system linked to a basket of international currencies, there is an official exchange rate between the Exchange Fund and the note-issuing banks. The current plan is to set it at 7.8 Hong Kong dollars per U.S. dollar. There are no permanent provisions, and there are so-called inconsistencies.

Certainty makes some people who care dissatisfied.

When the note-issuing bank issues banknotes, it deposits a basket of international currencies of equal value to the Exchange Fund in exchange for the Exchange Fund's liability statement. The operation method basically follows the previous "tradition". The main difference is that a single pound, dollar,

It has become a choice of more international currencies, and there is no big problem.

Corresponding to the official exchange rate, there is a market exchange rate as the name suggests. Because it can float freely, there is a difference between it and the official interest rate, attracting banks to buy or sell Hong Kong dollars for arbitrage, and ultimately maintains the stability of the Hong Kong dollar objectively.

This "correction" mechanism was not available in the previous Hong Kong banknote issuance system. Because the principle is easy to understand and widely appreciated, it can be said that there is no objection.

But one thing is that in this kind of arbitrage activity, the note-issuing banks and the Exchange Fund can operate on a basket of international currencies through the statement of liabilities without restriction; but other banks can only conduct transactions between Hong Kong dollars and US dollars through the note-issuing banks.

operations between.

Obviously, the so-called lack of fairness and special treatment makes some people dissatisfied.

In addition, the Exchange Fund began to issue ninety-one-day bills and bonds to authorized institutions that can be included in the accounts of the Exchange Fund. The total amount of each issue is HK$200 million, with a minimum denomination of HK$500,000, and is auctioned once a week.

In fact, this falls within the scope of the central bank's open market operations.

In the plan, the acceptable range of free floating between the Hong Kong dollar market exchange rate and the official exchange rate is between 0.05 Hong Kong dollars and above. In actual operation, the Exchange Fund Authority can intervene in the range that is too free to float through open market operations.

Even more.

Unprecedented power also makes some people dissatisfied.

All these are numerous, and the debate based on each of them can be said to be extremely enjoyable.

But they are destined to not be able to "have fun". You must know that this is a special period. The British used Hong Kong's prosperity as a bargaining chip to threaten negotiations, but they failed. The Hong Kong dollar is close to collapse, and the exchange rate against the US dollar has barely stopped at the current 8.4

Level, wait and see the stabilization measures promised by the Hong Kong government. The longer the delay, the greater the pressure on the Hong Kong government.

Therefore, the research on the improved currency board system advocated by Sir Gao, with the independent operation of the Exchange Fund, is almost done. Time is tight, and right or wrong cannot be predicted at once. Anyway, Sir Gao is bragging to the sky.

It's not certain whether he can serve the full five-year term.

So, on Saturday, October 8, two weeks after September 24, when the Hong Kong government changed its tune and announced plans to stabilize the Hong Kong dollar, the Legislative Council reviewed the amendments to the Exchange Fund Ordinance for the last time.

The situation is stronger than the people. Gao Xian helped the ghost guys do their homework several years in advance, which forced them to do nothing at this time. Apart from accepting the ready-made solution, is there any other option?

The Deputy Financial Secretary of the Hong Kong Government, Zhai Kecheng, replaced the Financial Secretary Peng Laizhi who was on "sick leave" and read the third reading of the revised "Exchange Fund Ordinance" which was basically in accordance with Gao Xian's intention.

The legislators who have been quarreling back and forth these days have expressed their respective positions in a somewhat listless manner, and the amendment to the "Exchange Fund Ordinance" was passed without any surprises.

The end of this process officially announced that after the Audit Office and the Independent Commission Against Corruption, the Exchange Fund Administration has become the third independently operating agency in Hong Kong.

Next, Governor Edward Youde nominated Executive Council member Sir Alex Ko as the first chairman of the Exchange Fund Committee and the first president of the Exchange Fund Authority.

Gao Xian took office, and everyone expected him to do so. Naturally, there would be no unexpected drama, and he passed smoothly.

Then, in his capacity as Chairman of the Exchange Fund Committee, Gao Xian announced the list of directors for the first term of the Exchange Fund Committee, including Chairman Gao Xian, representatives of the Financial Secretary, representatives of three note-issuing banks, Hui Feng, Standard Chartered, Yong, and six Hong Kong licensed banks.

Representatives from commercial banks, and an independent director representing the Hong Kong academic community.

There is no possibility of a problem in this link. The same is true after Gao Xian announced the appointment of the two vice presidents of the Exchange Fund Administration, Ren Zhigang and Li Guobao.

After the legal provisions, personnel appointment and other procedures were completed, the program that refreshed the spirits of the ghosts came. That is, Sir Gao explained his work goals for the five-year term as the President of the Exchange Fund Administration.

The ghost guys were not disappointed. Gao Xian formally mentioned without hesitation that the assets of the Exchange Fund would exceed US$30 billion in five years.

When introducing this work goal, Gao Xian also added casually, before the set goal is achieved as scheduled, I will only receive a symbolic salary of one Hong Kong dollar for the past five years. In fact, I originally wanted to receive even this Hong Kong dollar salary.

I refused to take it, but I was worried about causing trouble and inconvenience to other colleagues, so I took a symbolic payment of one Hong Kong dollar.

Come on, Sir Gao is so determined when he brags! If anyone is dissatisfied, come over and place your bets!

Finally, Gao Xian took the initiative to invite with a calm look on his face: "Ladies and gentlemen, your Excellencies, as well as friends from the media and representatives from all walks of life, if you have any questions, please feel free to speak and I will answer them all."

Now, the chat box is opened.

For example, Congressman Luo Bao asked, Sir Gao has a well-known close relationship with the banking, securities and business circles. Now that he is the president of the Exchange Fund Administration, how can he avoid possible risks of interest transfer?

In Gao Xian's view, this issue is bullshit. Even in today's period in Xiangjiang, with the threat of the Independent Commission Against Corruption, no one dares to guarantee that their social relations are 100% "pure". Take you, Luo Bao, for example. Do you only earn a salary as a member of the parliament?

salary?

Despite his disdain, Gao Xian still had to answer the question seriously.

In a clear tone, he slowly introduced: "I have resigned from the financial and business circles as chairman of the board of directors of Goyi and the chairman of the board of directors of Gulf Western Company. I have even resigned from the position of chairman of the Trade Development Bureau here in the government."

"All in all, I will try to keep my identity as simple as possible. However, given that I want to achieve the goal of the Exchange Fund's assets exceeding US$30 billion in five years, sometimes I may behave like a money manager."

"Therefore, I ask all supervisors for your understanding and support."

…

In this way, after a busy morning, the Legislative Council meeting concluded successfully.

After the news came out, although the new system would not be officially implemented until the day after tomorrow, the exchange rate of the Hong Kong dollar against the US dollar responded positively and fell back to 8.08, which was a pretty good start.

Since then, Hong Kong has entered an era led by Gao Xian, in which the Hong Kong dollar is linked to a basket of international currency exchange rates.