Banknotes of the Hong Kong dollar

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Hong Kong dollar 港元 (Chinese)
Hong Kong banknotes Hong Kong SAR
ISO 4217 Code	HKD
Official user(s)	Hong Kong
Unofficial user(s)	China  Macau
Symbol	$ or HK$
Banknotes	$10, $20, $50, $100, $500, $1,000
Monetary authority	Hong Kong Monetary Authority
Website	www.info.gov.hk/hkma
Printer	Issuing banks: Government of Hong Kong ($10) HSBC Standard Chartered Bank Bank of China Note printer: Hong Kong Note Printing Limited:
Website	www.hknpl.com.hk

The issue of banknotes of the Hong Kong dollar is governed in the Special Administrative Region of Hong Kong by the Hong Kong Monetary Authority (HKMA), the governmental currency board of Hong Kong. Under licence from the HKMA, three commercial banks issue their own banknotes for general circulation in the region. Notes are also issued by the HKMA itself.

In most countries of the world the issue of banknotes is handled exclusively by a single central bank or government. The arrangements in Hong Kong are unusual but not unique, as a comparable system is used in the United Kingdom, where eight banks issue banknotes.

Hong Kong banknotes in everyday circulation are $10, $20, $50, $100, $500 and $1,000.

The total value of banknotes in circulation in Hong Kong can be found in the HKMA Monthly Statistical Bulletin and the HKMA Annual Report.

Contents 1 History 2 Note-issuing banks 3 Note printing 4 Banknotes currently in circulation 5 Historical denominations and issuers of Hong Kong banknotes 6 Security features 7 References

[edit] History

In the 1860s the Oriental Bank, the Chartered Bank of India, Australia and China and the Hong Kong and Shanghai Banking Company began issuing notes. Denominations issued in the 1860s and 1870s included 1, 5, 10, 25, 50, 100 and 500 dollars. These notes were not accepted by the Treasury for payment of government dues and taxes, although they were accepted for use by merchants. 25 dollar notes did not survive beyond the end of the 19th century, whilst the 1 dollar notes (only produced by the HSBC) were issued until 1935.

Under the Currency Ordinance of 1935, banknotes in denominations of 5 dollars and above issued by the three authorised local banks (the Mercantile Bank of India Limited, the Chartered Bank of India, Australia and China and the Hong Kong and Shanghai Banking Corporation) were all declared legal tender. The government took over production of 1 dollar notes. In 1941, the government introduced notes for 1, 5 and 10 cents due to the difficulty of transporting coins to Hong Kong caused by the Second World War (a shipment of 1941 1 cent coins was sunk, making this unissued coin very rare). Just before the Japanese occupation, an emergency issue of 1 dollar notes was made consisting of overprinted Bank of China 5 yuan notes.

In 1945, paper money production resumed essentially unaltered from before the war, with the government issuing 1, 5 and 10 cents, and 1 dollar notes, and the three banks issuing 5, 10, 50, 100 and 500 dollar notes. 1 dollar notes were replaced by coins in 1960, with only the 1 cent note issued by the government after 1965.

In 1975, the 5 dollar notes were replaced by a coin, whilst 1000 dollar notes were introduced in 1977. The Mercantile Bank was absorbed by the HSBC in 1978 and ceased issuing notes. In 1985, 20 dollar notes were introduced, whilst, in 1993, a 10 dollar coin was introduced and the banks stopped issuing 10 dollar notes. In 1994, the Hong Kong Monetary Authority (HKMA), gave authority to the Bank of China to issue notes.

Between 1994 to 2002 an attempt was made to replace privately-issued $10 notes with coins issued by the government. In reponse to public demand for the continuation of a $10 note, the HKMA issued its own ten-dollar notes. Ten-dollar banknotes are currently the only denomination issued by the HKMA, having acquired the note printing plant at Tai Po from the De La Rue Group of the UK on behalf of the Government. The older 10-dollar banknotes previously issued by 2 commercial banks (green in color) are still circulating and remain legal tender, although they are being phased out since September 2005.

The 1-cent note issued by the Government was demonetised and ceased to be legal tender on October 1, 1995.

A commemorative polymer ten-dollar note was issued in July 2007 to commemorate the 10th anniversary of Hong Kong's return to China. ^[1]. The new note will circulate along with other 10 dollar issues for a trial period of two years, though the initial batch released was largely snapped up by collectors. ^[2][3]

[edit] Note-issuing banks

The Government, through the Hong Kong Monetary Authority, authorises 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.

Authorisation 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.

[edit] 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.^[4]

[edit] 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.

The Hongkong and Shanghai Banking Corporation Series
Value	Landmark for design	Mascot for design
$20	Victoria Peak; Peak Tram	Lion
$50	Po Lin Temple	Lion
$100	Lantau Link:Tsing Ma Bridge	Lion
$500	Hong Kong International Airport	Lion
$1000	Hong Kong Convention and Exhibition Centre (New wing); Victoria Harbour	Lion
Bank of China (Hong Kong) Series
$20	Peak Tower	Bank of China Tower
$50	Tsim Sha Tsui Waterfront: Hong Kong Cultural Center and Space Museum	Bank of China Tower
$100	Lantau Link:Tsing Ma Bridge	Bank of China Tower
$500	Hong Kong International Airport	Bank of China Tower
$1000	Wan Chai Waterfront: Hong Kong Convention and Exhibition Centre and Central Plaza	Bank of China Tower
Standard Chartered Bank (Hong Kong) Series
$20	Hong Kong 1850s picture	Chinese dragon headed Carp
$50	Hong Kong 1890s picture	Chinese dragon headed Turtle
$100	Hong Kong 1930s picture	Qilin
$500	Hong Kong 1970s picture	Fenghuang
$1000	Hong Kong 2000s picture	Chinese dragon
Government of Hong Kong Series
$10	-	Horse

[edit] Historical denominations and issuers of Hong Kong banknotes

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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.

This section requires expansion.

[edit] Security 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.

• Polymer: The ten-dollar banknotes are made of polymer, 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 the official website of Hong Kong Monetary Authority. Permission granted.

[edit] References

v • d • e Hong Kong currency Topics Banknotes of the HKD · Coins of the HKD · Hong Kong dollar Coinage 10¢ · 20¢ · 50¢ · $1 · $2 · $5 · $10 Banknotes $10 · $20 · $50 · $100 · $500 · $1000 Banknote issuers Bank of China (Hong Kong) · Hong Kong Monetary Authority · The Hongkong and Shanghai Banking Corporation · Standard Chartered Bank (Hong Kong)