Hong Kong’s financial markets remain stable and orderly despite recent volatility triggered by US tariff measures, according to an official from the Hong Kong Monetary Authority.
HKMA deputy chief executive Darryl Chan Wai-man told mainland media that the authority had taken steps to safeguard financial stability, adding that he expects major shifts in global supply chains and hopes the city’s financial system will be well-positioned to support related financing needs.
He said that HKMA has pledged to support sectors more vulnerable to external shocks, such as trade and logistics, with a focus on providing targeted assistance to small and medium-sized enterprises.
“The Hong Kong dollar is stable within the range of 7.75 to 7.85 against the US dollar," Chan said. "Hong Kong’s foreign exchange reserves stand at approximately US$416 billion, about 1.6 times the base money supply. The banking sector is well-capitalized, with a capital adequacy ratio of 21.8 percent, and liquidity is ample, with a coverage ratio of 178.4 percent."
The city has established a round-the-clock, cross-market regulatory mechanism to monitor the currency, stock and real estate markets, and has developed contingency plans to swiftly respond to potential shocks, Deputy Financial Secretary Michael Wong Wai-lun said at a forum.
Wong said that any attempts to disrupt the city’s financial stability would be met with a “strong and decisive” response.
The government has instructed the stock exchange and securities regulator to be fully prepared to support Chinese companies facing potential delisting threats in the United States, aiming to make the city their top choice for secondary or primary listings, Wong added.
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