Banks to be applied in Hong Kong
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The Standing Committee of the National Peopleˇ¦s Congress (NPCSC) decided today (October 27) to add a national law providing for immunity of property of foreign central banks from judicial enforcement measures (ˇ§the National Lawˇ¨) to Annex III to the Basic Law following its passage. The Hong Kong Special Administrative Region (HKSAR) Government intends to take action to implement the National Law in Hong Kong by way of local legislation.
The National Law seeks to protect the property of foreign central banks from legal process for the enforcement of a judgment in the Peopleˇ¦s Republic of China. Since granting protection to foreign central banks is a matter of foreign affairs, it is dealt with by the Central Peopleˇ¦s Government by enacting a national law.
ˇ§We welcome the enactment of the National Law. Upon its application in Hong Kong, express legal protection will be provided to the property of foreign central banks here, thus putting Hong Kong on a par with international practice in this respect and encouraging central banks to continue placing assets in Hong Kong. This is beneficial to maintaining our status as an international financial centre,ˇ¨ a Government spokesman said.
The decision to add the National Law to Annex III to the Basic Law was made after the NPCSC consulted its Committee for the Basic Law of the HKSAR and the HKSAR Government in accordance with Article 18 of the Basic Law. The Basic Law stipulates that only those national laws listed in Annex III to the Basic Law shall be applied in Hong Kong. The laws listed therein shall be applied locally by way of promulgation or legislation by the HKSAR.
ˇ§As certain modifications and adaptations in respect of the National Law will be necessary for the local circumstances, we intend to implement it in Hong Kong by way of local legislation,ˇ¨ the spokesman said.
ˇ§The draft local legislation will be prepared in consultation with the relevant parties including foreign central banks and the Legislative Council.ˇ¨
Ends/Thursday, October 27, 2005
Issued at HKT 21:09
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