**********************************************
The Hong Kong Monetary Authority (HKMA) today (September 21) published the September 2006 issue of its Quarterly Bulletin.
This Bulletin contains three feature articles:
- Hong Kong's business cycle synchronisation
with Mainland China and the US - showing
that, despite increasing integration between
the Hong Kong and Mainland economies,
co-movements of business cycles between the
two are mainly explained by developments in
the US affecting both.
- The validation of internal rating systems
for capital adequacy purposes - describing
the main features of the validation standards
the HKMA will use to determine whether
authorised institutions are eligible to use
their internal ratings systems to calculate
the supervisory capital requirements for
credit risk.
- Forecasting the non-rental component of Hong
Kong's CCPI inflation - an indicator
approach - concluding that the selected
indicator models can improve the accuracy of
inflation forecasts for Hong Kong.
The Bulletin also includes a speech entitled "The debt market of Hong Kong - what can we offer to investors?" given by YK Choi, Deputy Chief Executive of the HKMA, at the third Annual Asia Pacific Bond Congress on June 13, 2006. The speech gave an overview of Hong Kong's debt market and its attractions.
The Quarterly Bulletin may be ordered from the HKMA at $100 per copy. The Bulletin may also be bought at the HKMA Information Centre on 55th Floor, Two International Finance Centre. The full text of the Bulletin (http://www.info.gov.hk/hkma/eng/public/qb_index.htm) is available on the HKMA website.
For further enquiries, please contact:
Sara Yip, Manager (Press), at 2878 8246 or
Hing-Fung Wong, Officer (Press), at 2878 1802
Ends/Thursday, September 21, 2006
Issued at HKT 16:33
NNNN