howard lee : opening remarks - project sela report launch conference opening remarks by mr howard lee, deputy chief executive of the hong kong monetary authority, at the project sela report launch conference, tel aviv, 12 september 2023. * * * andrew ( deputy governor of the bank of israel andrew abir ), benedicte ( head of the bank for international settlements ( bis ) innovation hub hong kong centre benedicte nolens ), ladies and gentlemen, good morning. opening firstly, i would like to extend a heartfelt thanks to the bank of israel for hosting this event and for their warm hospitality. we're in the conference center of the tel aviv stock exchange, and i must say, it is a privilege to announce the successful completion of the first joint research project between the hkma and the bank of israel from such an iconic venue in front of a high - profile audience. as you have already heard, the name " sela " was chosen to symbolise the collaborative efforts between the hkma and the bank of israel because, besides indicating an ancient israeli coin, it means " rock " in hebrew, thereby referring to the hkma's legacy in central bank digital currency research, which began in 2017 with project lionrock. for those of you who are not familiar with hong kong, the lionrock is the most recognisable mountain in hong kong. this mountain, as you can probably guess, is shaped like a lion. but it's neither its shape nor its height that made it famous, but the folklore over the past decades that today make it the symbol of the " can - do " spirit of hong kong and of its ability to turn complex challenges into opportunities for growth and development. after several months of enthusiastic collaboration and this visit, i can confidently say that this is the same spirit that i can find in this " start - up nation ". hkma's cbdc research besides having a relevant name, project sela also focused on a highly relevant subject for central banks : central bank digital currencies, or cbdcs. the research into cbdcs is a priority for many central banks worldwide, and for a good reason. the digitalisation of currency has the potential to revolutionise financial systems, redefine transaction processes, and even reshape economies. given these profound implications, at the hkma we have been extensively involved in cbdc research at both the wholesale and the retail level, in order to future - proof our

mr. yam talks about the implementation of financial policies in the hksar. address by the chief executive of the hong kong monetary authority, mr. joseph yam, at a symposium in commemoration of the 9th anniversary of the promulgation of the basic law of the hksar in hong kong on 10 april 1999. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ms ko, ladies and gentlemen, 1. i am very honoured to be invited today to address this seminar. the basic law is the constitutional instrument of the hong kong special administrative region ( hksar ). the legal protection offered by the basic law has, to a very great extent, contributed to hong kong ’ s monetary stability during the political transition and has enabled hong kong to withstand the severe challenges brought about by the unprecedented financial crisis. i would like to take this opportunity to examine the implementation of financial policies in the hksar. i shall discuss with you the two main areas relating to financial policies under the concepts of “ one country, two systems ” and “ hong kong people ruling hong kong ” as well as the legal protection offered by the basic law. the first of these is the monetary autonomy enjoyed by the hksar. the second is the monetary relationship between hong kong and the mainland. i should stress that the experience of the hksar government since its establishment shows that hong kong not only enjoys an even higher degree of monetary autonomy after the transfer of sovereignty, but also that its monetary relationship with the mainland has been handled strictly in accordance with the “ one country, two systems ” principle. i hope that this will also be your conclusion at the end of this seminar. hong kong ’ s autonomy in formulating its own financial and monetary policies 2. first, let me talk about hong kong ’ s monetary autonomy. prior to the handover, some people feared that hong kong ’ s monetary autonomy would be eroded. this was quite understandable, since the “ one country, two systems ” principle was a completely novel concept. however, a comparison between the relevant provisions in the two constitutional instruments applied to hong kong before and after the transfer of sovereignty respectively, i. e