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Global Times

Senior official says financial risk remains controllable in Hong Kong

Global Times

Source:Xinhua Published: 2020/4/26 14:32:59

Financial Secretary of China's Hong Kong Special Administrative Region government Paul Chan said Sunday that the financial risk remains controllable in Hong Kong despite the double blow from the violent incidents last year and the recent COVID-19 epidemic.

Hong Kong's financial markets have been performing normally despite substantial fluctuations, Chan said in an online article.

There have been no noticeable capital outflows and the Hong Kong dollar hit the 7.75-per-U.S. dollar strong end of the trading band under the Linked Exchange Rate System (LERS) several times recently, indicating capital inflows, Chan said.

The influx of funds has totaled about 1 trillion Hong Kong dollars (about 129 billion U.S. dollars) in Hong Kong since the global financial crisis in 2008, and only less than 140 billion Hong Kong dollars (about 18 billion U.S. dollars) of which have been transferred out of Hong Kong, Chan said.

Even if capital outflows occur, Hong Kong has an effective LERS to ensure a stable local currency, Chan said.

Chan also said Hong Kong's financial regulators have made joint efforts to cope with the impact of the epidemic, providing liquidity to the banking system, offering more financial support to money-strapped businesses, and stepping up monitoring on financial markets.

Meanwhile, he said despite high home prices, Hong Kong's housing market is unlikely to see sharp declines due to rounds of demand management measures and relatively tightened supply.



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