Banknotes of the Hong Kong dollar

Hong Kong banknotes in everyday circulation are $10, $20, $50, $100, $500 and $1,000. In 2002, the Hong Kong Government issued a new ten dollar note in recognition of a continuing demand among the public for a note in addition to the coin. The existing $10 notes issued by two note-issuing banks remain legal tender, but they are no longer printed. The one-cent note issued by the Government was demonetised and ceased to be legal tender on 1 October 1995.

The total value of banknotes in circulation in Hong Kong can be found in [http://www.info.gov.hk/hkma/eng/statistics/msb/new_msb_tables_b.htm#money Monthly Statistical Bulletin] and the [http://www.info.gov.hk/hkma/ar2006/eng/economic/economic_05.htm Annual Report] .

Note-issuing banks

The Government, through the Hong Kong Monetary Authority, has given authorization to three commercial banks to issue currency notes in Hong Kong:

*The Hongkong and Shanghai Banking Corporation Limited;
*the Standard Chartered Bank (Hong Kong) Limited; and
*the Bank of China (Hong Kong) Limited.

Authorization is accompanied by a set of terms and conditions agreed on between the Government and the three note-issuing banks. Banknotes are issued by the three banks, or redeemed, against payment to, or from, the Government Exchange Fund in US dollars, at a specified rate of US$1 to HK$7.80 under the Linked Exchange Rate system. Banknotes issued by the three commercial banks are printed in Hong Kong by Hong Kong Note Printing Limited.

Note printing

In April 1996, the HKMA acquired the note printing plant at Tai Po from the De La Rue Group of the United Kingdom on behalf of the Government. The plant has been operating under the name of HKNPL since then. The acquisition of the plant enables the Government, through the HKMA, to be directly involved in the production of Hong Kong currency notes, which is in line with the responsibilities conferred upon the Government under the Legal Tender Notes Issue Ordinance and the Basic Law. In March 1997, the Government sold 15 per cent of its shareholding in HKNPL to the China Banknote Printing and Minting Corporation, a People's Republic of China state-owned enterprise. In October 1997, the Government sold 10 per cent of HKNPL issued shares to each of the three note-issuing banks. The Government continues to exercise management control and maintains a majority stake in HKNPL, with the Chief Executive of the HKMA as the Chairman of the company.

Recently the bank has acquired polymer banknote technology to print the ten dollar banknote for a trial period of two years. [cite web | author=HKMA | date=2007-03-12 | url=http://www.info.gov.hk/hkma/eng/press/2007/attach/20070312e3a.pdf| title= General Information on the Hong Kong Ten Dollar Polymer Note | accessdate=2007-03-13]

Banknotes currently in circulation

The HKMA issues the $10 note and the other three banks issue denominations of 20, 50, 100, 500 and 1000 dollars.

Historical denominations and issuers of Hong Kong banknotes

Previous issuers of banknotes were The Merchantile Bank Limited 1853-1984, The National Bank of China 1891-1911, The Oriental Bank Corporation 1845-1884, the AGRA & Masterman's Bank Limited 1862-1866, The Asiatic Banking Corporation 1862-1866 and The Bank of Hindustan, China & Japan 1862-1966. All issued some or all of the denominations above.

Those no longer issued include the 1, 5, and 10 cent notes along with the 1, 5, and 25 dollar notes.

ecurity features

The following security features are incorporated into genuine Hong Kong banknotes:

*Paper: The banknote paper is made of 100% cotton fibre, which does not fluoresce under ultraviolet light.

*Plastic: Some new banknotes are made of plastic, and have a transparent panel.

*Watermarks: The watermarks are incorporated during the paper manufacturing process. They can be viewed equally well from either side of the note. The images are multi-toned and sharp, and do not show up when placed under ultraviolet light.

*Security thread: A straight metal thread is embedded in the note. It can be viewed equally clearly from either side of the note.

*See-through feature: When the note is held up to the light, the specially designed colour patterns printed on the front and back will be seen to be exactly aligned with each other.

*Intaglio printing: The main images of the notes are printed by an intaglio printing process which deposits a large quantity of ink on the paper thus giving the note an embossed feel. The fine lines of these images are clear and sharp.

In pursuance to section 103 of the Crimes Ordinance (Cap 200 of Laws of Hong Kong), anyone who wants to reproduce the whole or any part of any Hong Kong currency note for any purpose in any form must apply in writing to the Monetary Authority for approval. No reproduced images should be submitted with the application because such an action would already amount to a breach of section 103 of the Crimes Ordinance. It is a criminal offence under the Crimes Ordinance to manufacture or knowingly pass, tender or possess a counterfeit banknote. The offence carries a maximum penalty of 14 years imprisonment.

Adopted from [http://www.info.gov.hk/hkma/ the official website of Hong Kong Monetary Authority] . Permission granted.

References

* Ma Tak Wo 2004, Illustrated Catalogue of Hong Kong Currency, Ma Tak Wo Numismatic Co., LTD. Kowloon, Hong Kong.ISBN 962-85939-3-5