No outflow - inflow instead, says Chan

Business | Avery Chen 27 Apr 2020

Financial Secretary Paul Chan Mo-po said Hong Kong hasn't seen massive capital outflows while the current financial risks remain under control.

The current strength of the Hong Kong dollar, which has traded on the strong side of 7.75 to 7.85 per US dollar band, indicates that there are capital inflows, Chan wrote in a blog post yesterday.

He said around HK$1 trillion worth of funds has flowed into Hong Kong since the 2008 financial crisis with less than HK$140 billion going out from the city, and that's why interest rates remained low for a long time. An effective linked exchange rate system would stabilize the exchange rate and maintain the market confidence, Chan said, adding that the city's financial regulators will ensure the liquidity and lending capacity of local banks, offering support to businesses, to cope with the pandemic.

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