The recent attention to the situation in the middle east by china news agency (hong kong, china news agency) on march 5 (journalist dai xiaoxi) has caused global financial market volatility. Recently, during an interview with the chinese news agency, chen mobo, director of finance of the government of the hong kong sar, stated that with the advantages of free access to funds and the exchange rate linkage system, hong kong had the conditions to become the preferred “safe haven” for international funds to avoid risk, the hksar government would take risk management and maintain financial market stability in hong kong。
In recent days, chen maobo, director of finance of the government of the hong kong sar, has received an interview with the chinese news agency. A reporter from china news agency
According to chen mobo, international financial flows are fast, while hong kong, under the “one country, two systems”, has the natural advantage of free access, while the hong kong dollar is linked to the united states dollar, creating a stable exchange rate system that makes hong kong a “safe haven” for international financial risk avoidance. While hong kong has always welcomed the normal flow of international funds, it is also keen to be vigilant and concerned about possible market fluctuations in the flow of funds and to manage risks in a comprehensive manner。
In the area of risk management, he noted that while hong kong would monitor the movement of funds, focusing on the scale, life cycle, financial entity and underlying drivers, the precise screening of funds as normal activities or operational trends, it would monitor market changes, establish a strong buffer mechanism within the financial system, effectively respond to market fluctuations and guarantee the smooth functioning of financial markets as a whole。
He described the current gross bank deposits of over hk$19 trillion, the average bank liquidity coverage of about 170 per cent, well above 100 per cent of international regulatory requirements, and the low rate of non-performing loans. Over the past two or three years, the hong kong banking system has been operating with high profits, combined with a large economy and a high degree of internationalization, bringing together the world's most important international financial institutions, resulting in a “me and me” paradigm of deep integration and development that further enhances the overall resilience of the hong kong financial system to risk. (concluded)
