Yam offers fearful reading on Swift threat

Former chief executive of Hong Kong Monetary Authority Joseph Yam Chi-kwong, has likened the power of the Swift system, which the United States wants to use to sanction China, as the equivalent of a financial nuclear bomb.

But he believes the chance of the Society for Worldwide Interbank Financial Telecommunication system - used for transactions and payments between banks worldwide - being brought into a sanctioning play is slim for the time being.

Yam was asked at the Hong Kong Book Fair yesterday if he was worried that Washington would use Swift to sanction China.

He responded that if the US uses it against Beijing then Chinese-funded banks and Hong Kong's economy would be hurt.

"Economic activities in Hong Kong would come to a halt," he said, describing the system as being like a nuclear bomb, which could cause widespread damage.

On virtual asset-related products, Yam said VA trading platforms and cryptocurrency sellers have failed to explain fully their trading activities, so he advised people to think carefully before venturing into the products.

Yam also noted that the United States and China are the two largest economies and have to work in tandem, and Hong Kong is the best channel for financial communications between them.

Yam also expressed high hopes for Hong Kong's financial future, saying the SAR should continue to diversify investments and fund-raising platforms while handling risk assessment matters and protecting the interests of investors.