HK Remains Competitive

Secretary for Financial Services & the Treasury James Lau says the core competencies of Hong Kong as an international financial centre remain well in place.

Mr Lau told lawmakers today that Hong Kong has been facing unprecedentedly severe challenges in the past four months, however, different facets of Hong Kong's financial system have been functioning smoothly and orderly so far.

He added Hong Kong's banking system has been sound and robust, with ample liquidity, while the interbank market continues to operate orderly.

There was no noticeable outflow of funds from the Hong Kong dollar or from the banking system based on the latest statistics on deposits and money supply.

The Monetary Authority will closely monitor changes in the foreign exchange market and the local money market, maintain the stability of the Hong Kong dollar exchange rate through the Linked Exchange Rate System and provide liquidity support to banks if necessary.

Mr Lau also noted that the Securities & Futures Commission has been closely monitoring the securities market. The trading and clearing operations of the Hong Kong stock and derivatives markets have been performing in an orderly manner in spite of the increasing market volatility.

The Government and financial regulators will stay vigilant, conduct stress tests regularly, communicate closely and monitor the latest situation of the financial market, to ensure financial stability.