HK sees net cash inflow in 2020Business | Staff reporter 9 Feb 2021
Funds keep flowing in Hong Kong and not much has left the city via offshore accounts, said Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, adding that there will be more breakthroughs in the local capital market.
"Throughout 2020, the Hong Kong dollar exchange rate remained in the strong half of the convertibility zone. Indeed, strong inflow momentum led to the triggering of the strong side Convertibility Undertaking for 85 times since last April, taking in US$50 billion (HK$390 billion) in aggregate, the largest amount in a year since 2010," the HKMA head wrote in a website note.
Meanwhile, the total amount of banking deposits rose in both 2019 and 2020, with 2.9 percent year-on-year growth in 2019 and a further 5.4 percent in 2020.
"Had money been flowing out, we would have seen a weakening Hong Kong dollar exchange rate and shrinking banking deposits," Yue said.
Hedge funds, asset managers or even banks come and go for various business reasons and some of them departed to shift their business focus, while some as a result of consolidation at group level, Yue said.
While there could be outflows occasionally for different reasons, more money has been coming in, resulting in net inflows into the Hong Kong dollar, he said.
Meanwhile, the HKMA extended the Banking Talent Programme to upcoming fresh graduates this year by offering six-month work opportunities and professional training starting September 2021.
The existing program for recruited graduates will also be extended for a period of up to six months till August 31, depending on the operational needs of the participating institutions.