23 JANUARY 1999, Page 24

Banking on Principles

WHAT do you do with central bank gover- nors when they descend on you for the weekend? Invite them to discuss the euro? Their hosts at the Hong Konotary Authori- ty had a far better idea. The visitors were scooped up and taken to the races. There, it appears, their attention was drawn to a horse called Core Principles, running in the colours of a syndicate of members of the HKMA's staff. Encouraged by this, they dipped into their reserves and intervened in the market to support it, but markets do not always work out as central bankers wish. Core Principles came in fourth.