A Democratic Party motion condemning the Government's decision to intervene in the stock and futures markets has set the stage for the first wide-ranging political debate on the action. In yesterday's motion, Democratic legislator Albert Ho Chun-yan claims the Hong Kong Monetary Authority (HKMA) 'repeatedly erred in its efforts to maintain the linked exchange rate system' and failed 'to introduce timely measures to strengthen the currency board arrangements'. It also 'expresses strong dissatisfaction with the performance of the HKMA and urges [it] to learn earnestly from the lesson so as to avoid repeating the mistakes'. It states: 'This council urges the Government to review the structure and regulatory mechanism of the HKMA with a view to enhancing its transparency and accountability.' The motion - due to be debated next week - presents the full Legislative Council with its first chance to discuss the intervention after previous debates were restricted to members of the council's financial affairs panel. During sessions with the panel, Government officials including Financial Secretary Donald Tsang Yam-kuen and HKMA chief executive Joseph Yam Chi-kwong were questioned by legislators. The Government had yet to decide whether to send a representative to the debate, sources said. Hong Kong Financial Markets Association president Andrew Fung Hau-chung said the motion's allegations were unfair. He said it was widely accepted that the Government's seven-point package to strengthen the currency board had been effective. He said the package would start working in full once a favourable external environment appeared, enabling confidence in the market to be rebuilt.
