Economy

According to the Basic Law, what conditions must compensation for expropriation of private property satisfy?

• Equivalent to the real value of the property at the time
• Freely convertible
• Paid without undue delay
• Carried out in accordance with law

Which of the following is correct regarding the finances of the HKSAR?

• Financial revenues used exclusively for the Region's own needs
• Not handed over to the Central People's Government
• Central People's Government does not levy taxes in Hong Kong
• The Region maintains independent finances

What principle must the HKSAR budget follow according to the Basic Law?

• Keeping expenditure within the limits of revenues
• Striving for a balance between revenue and expenditure
• Avoiding deficits
• Commensurate with the growth rate of GDP

What are the key features of the HKSAR tax system?

• Independent taxation system
• Self-legislating on tax types, rates, and exemptions
• Based on low-tax policy reference
• No approval required from the Central Government

What prescribes the monetary and financial system of the HKSAR?

• Law
• Not the government itself alone — it must be prescribed by law
• Not the Central People's Government
• Not the Hong Kong Monetary Authority

What does the Basic Law require of the HKSAR Government in financial matters?

• Provide an appropriate economic and legal environment to maintain international financial centre status
• Formulate its own monetary and financial policies
• Safeguard freedom of operation of financial enterprises and markets
• Manage and supervise in accordance with law

The authority to issue Hong Kong currency is vested in ___.

• The HKSAR Government
• NOT the Hong Kong Monetary Authority
• NOT the Central People's Government
• Issue must be backed by a 100% reserve fund

What conditions must be met for the HKSAR Government to authorise designated banks to issue HK currency?

• The monetary base must be confirmed to be sound
• Issue arrangements must be consistent with maintaining currency stability
• Issue must be backed by a 100% reserve fund
• Issuance must be under statutory authority

What are the HKSAR's foreign exchange policies under the Basic Law?

• No foreign exchange control policies
• Hong Kong dollar freely convertible
• Free flow of capital in and out
• Exchange Fund managed by the HKSAR Government, primarily used to regulate HK dollar exchange value

What does the Basic Law provide regarding the HKSAR's customs status?

• Maintains free port status
• No tariffs unless otherwise provided by law
• Is a separate customs territory
• May participate in international trade organisations as "Hong Kong, China"

What are the core elements of the HKSAR trade policy under the Basic Law?

• Free trade policy
• Freedom of movement of goods, intangible assets, and capital
• Export quotas and tariff preferences enjoyed exclusively by the HKSAR
• May issue certificates of origin

What are the HKSAR Government's responsibilities in industrial and commercial matters under the Basic Law?

• Formulate appropriate policies to promote various industries
• Including manufacturing, commerce, tourism, and real estate
• Fishing and agriculture are also included
• Environmental protection must be taken into account

According to Article 121 of the Basic Law, what annual rent must tenants under certain land contracts pay?

• 3% of the rateable value of the land on that day
• No premium required
• Applies to contracts granted between 27 May 1985 and 30 June 1997
• Tenure not beyond 30 June 2047

What does Article 122 of the Basic Law provide regarding land rent for indigenous villagers in the New Territories?

• Applies to old grant land, village lots, small house land, etc.
• Tenant must be a patrilineal descendant of 1898 original villagers
• Original rent remains unchanged
• Does not apply to all New Territories residents

Which type of vessel requires special permission from the Central People's Government to enter the HKSAR?

• Foreign military vessels
• Non-military foreign vessels do not require central permission
• Other vessels may freely enter and leave ports under HKSAR laws
• Private shipping enterprises and container terminals may continue to operate freely

What shipping arrangements does Hong Kong maintain after 1997 under the Basic Law?

• Maintains the original shipping business and management system
• Including the system for managing seafarers
• Registers vessels and issues certificates under "Hong Kong, China"
• Private shipping enterprises and container terminals continue to operate freely

Under the Basic Law, who arranges air services between Hong Kong and the Chinese mainland?

• The Central People's Government after consulting the HKSAR Government
• NOT the HKSAR on its own
• Different from agreements involving third countries
• Central Government must consult the HKSAR Government

Who is responsible for civil aviation agreements with foreign countries, and what role does the HKSAR play?

• The Central People's Government negotiates and concludes such agreements
• Must consider the HKSAR's special situation and economic interests
• Must consult the HKSAR Government
• HKSAR representatives may join the PRC delegation during negotiations

What civil aviation matters has the Central People's Government specifically authorised the HKSAR Government to handle?

• Renew or amend existing civil aviation transport agreements
• Negotiate and conclude new civil aviation transport agreements
• Negotiate provisional agreements with countries or regions without agreements
• Issue licences to airlines registered in HK and with HK as principal place of business

Under the Basic Law, which airlines may continue to operate after the establishment of the HKSAR?

• Must have been registered in Hong Kong before the establishment of the HKSAR
• And have Hong Kong as their principal place of business
• Both conditions must be satisfied simultaneously
• Civil aviation-related industries are also protected