A warning was issued yesterday on ensuring the financial system is not used for activities that go against the national security law.
Financial Secretary Paul Chan Mo-po said in his blog that national security and economic development should be given equal consideration and improved together as this is imperative in combating financial activity that violates the national security law.
"National security is a prerequisite for economic development, and economic development is a guarantee for national security," he said. "The two must be coordinated and mutually reinforced.
"So-called sanctions, economic blockades and even the use of currency settlement as weapons are used with the sole intent of forcing other countries to comply through economic and financial means or even undermine the regime."
Chan went on to say he therefore believes the SAR administration should focus on building a safe and secure system and mechanisms that will allow it to resist internal and external shocks and threats.
At the same time, Chan said, the administration should actively manage the dissemination of information and guide public opinion and social expectations to prevent "secondary risks."
Financial security is the cornerstone of economic security, he went on, and the administration's task is to prevent systemic financial risk, with the priority being to adhere to the linked exchange rate system.
The administration also has to maintain control over cross-market risks and to prevent the transmission of risks from foreign markets to the mainland market, Chan added.
And the SAR administration must ensure the financial system "will not be used to carry out activities that hamper national security, including money laundering, financing terrorist activities and capital activities breaching the national security law," Chan declared.
Meanwhile, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said selecting Election Committee members from a group of state-appointed accounting consultants to the accounting subsector benefits the country as well as Hong Kong.
According to the arrangement, half of the 30 members of the accounting subsector of the Election Committee will be elected from local accounting consultants appointed by the state.
Writing in his blog, Hui said this would make members think more about the country and Hong Kong's development while executing their duties.
The other 15 members on the accounting subsector will be elected from organizations and auditors registered under ordinances.
