Free Hk Capital Flows Guaranteed

China's central bank governor pledged that free flow of capital through Hong Kong would be guaranteed after the return of the British colony to Chinese rule on July 1, Xinhua news agency said.

Hong Kong's markets in forex, gold, shares and futures would remain open and Beijing would support, but not interfere in its currency management, People's Bank of China governor DaiXianglong said Dai'sremarks were a restatement of China's repeated pledges to preserve Hong Kong as a regional financial centre after 156 years of colonial rule from Britain end at midnight today

"The People's Bank of China will not interfere in the operation of the monetary market in Hong Kong after it returns to the motherland," Xinhua quoted Dai as saying.

"However, the central bank is ready to provide support to stabilise Hong Kong's currency in time of need, he said.

and in response to the Hong Kong Monetary Authority's request," he said.

There would be no change in the territory's system of currency issuance, he said.

"Markets for foreign exchange, gold, securities and futures will remain open, and the free flow of capital will be guaranteed," Xinhua quoted him as saying.

Hong Kong could retain and develop its overseas financial ties and could join international financial organisations, sign bilateral and multilateral financial agreements and open representative offices abroad, he said.

In dealings with international organisations that only accepted sovereign states, the central government would include Hong Kong personnel as members of the Chinese delegation, he said.