Despite escalating trade tensions initiated by the United States, Hong Kong’s financial markets are operating smoothly, according to Darryl Chan, deputy chief executive of the Hong Kong Monetary Authority (HKMA). Chan acknowledged that while the trade war may inevitably impact Hong Kong, the region’s financial systems remain robust.
“The trade war has caused significant volatility in financial markets recently and is expected to have a severe long-term impact on global economic trade, which is certainly not a positive development,” Chan stated.
Hong Kong, known for its open financial markets, has seen the Hong Kong dollar (HKD) maintain ample liquidity in both exchange rates and interest rates. In fact, the HKD has slightly strengthened, primarily due to investors seeking safe havens amidst the turmoil.
In the stock market, trading continues to be orderly despite some price fluctuations. “We are closely monitoring the financial derivatives market and have detected no abnormalities so far,” Chan emphasized. “The banking system is operating smoothly.”
Chan’s reassurance comes as a relief to investors and residents alike, affirming Hong Kong’s resilience in the face of global economic uncertainties.
Reference(s):
Hong Kong financial system operating smoothly amid US tariff turmoil
cgtn.com