Banknotes of the Hong Kong dollar

Origins till 1900

In the 1860s the Oriental Bank Corporation, the Chartered Bank of India, Australia and China and the Hong Kong and Shanghai Banking Corporation 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 (issued only by the HSBC) were issued until 1935.

20th century

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, London and China, Chartered Bank of India, Australia and China and the Hongkong 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 notes of 1, 5 and 10 cents and 1 dollar, and the three banks issuing notes of 5, 10, 50, 100 and 500 dollars. 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 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.

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

21st century

Between 1994 and 2002 an attempt was made to replace privately issued 10-dollar notes with coins issued by the government. In response 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.

Leading to the incorporation of Standard Chartered (Hong Kong) on 1 July 2004, the Legislative Council of Hong Kong amended Legal Tender Notes Issue Ordinance. The amendment replaced Standard Chartered Bank with its newly incorporated subsidiary - Standard Chartered Bank (Hong Kong) Ltd - as one of the note-issuing banks in Hong Kong.

The older (green) 10-dollar banknotes previously issued by two commercial banks are still circulating and remain legal tender, although they are being phased out since September 2005. These are popular for lai see and are noticeably scarce in the run up to Chinese New Year.

A commemorative polymer ten-dollar note was issued in July 2007 to commemorate the 10th anniversary of Hong Kong's return to China. 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.

Note-issuing banks

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

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.

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.

Historical denominations and issuers

Previous issuers of banknotes were Mercantile Bank of India, London and China (1853–1984), Chartered Bank of India, Australia and China (1911-1956), The National Bank of China (1891–1911), Chartered Bank (1956-1982) 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.

Security features

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

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.