HONG KONG (China Day by day/Asia Information Community): Monetary Secretary Paul Chan reassured world traders and enterprises that Hong Kong is the most effective worldwide monetary heart in Asia and there’s no trigger for alarm, even amid the extraordinarily difficult atmosphere.
Chan made the remarks on Thursday (Nov 3), the final day of the town’s World Monetary Leaders’ Funding Summit, and shared how Hong Kong has weathered the dangers and volatilities in monetary markets.
His speech got here on the heels of the US Federal Reserve’s delivering a fee hike of 75 foundation factors. The Hong Kong Financial Authority raised its base fee accordingly on Thursday.
The Fed’s latest interest-rate changes have prompted the town’s de facto central financial institution to ramp up forex purchases, leading to a fall within the metropolis’s combination stability — the important thing gauge of money within the banking system — from HK$350 billion (US$44.6 billion) in Might to round HK$100 billion in Oct.
Chan advised summit attendees that “our international forex reserves stand at round $450 billion, equal to about 1.7 occasions the Hong Kong financial base. So in case you wager in opposition to the Hong Kong greenback, you’re sure to lose.”
He defined the town has paid a lot consideration to making sure its monetary stability and safety. A system displays all sectors of the monetary markets and offers well timed studies to manage dangers, he stated.
“We connect nice significance to investor safety, and we imagine that for a market to achieve the long run, it should be trusted by each market individuals and traders,” he stated. To attain this, Hong Kong has set clear guidelines for the markets, stringent necessities on the individuals, and maintains excessive transparency of its functioning, making certain that insurance policies and practices are applied in a constant and predictable method.
In response to latest calls that the Hong Kong SAR authorities do one thing about its tumbling inventory market, the monetary secretary stated, “There isn’t any trigger for alarm.”
“Hong Kong is a world monetary heart with an internationally aligned regulatory regime, deep liquidity with transparency, and far resilience with correct safeguards to guard traders. We’re merely the most effective IFC in Asia. You’re most welcome to speak enterprise and make investments right here,” he stated.
