As the US-China trade war intensifies global economic uncertainty, Hong Kong's financial system continues to demonstrate stability, according to the Hong Kong Monetary Authority (HKMA). Deputy Chief Executive Darryl Chan acknowledged the long-term risks posed by the conflict but emphasized the region's current market resilience.
Resilience in Turbulent Times
Chan noted that while the trade war has caused significant volatility worldwide, the Hong Kong dollar (HKD) currency market maintains ample liquidity. The HKD has even strengthened slightly as international funds seek safe-haven assets. Stock market trading remains orderly despite price fluctuations, and the HKMA has detected no irregularities in the financial derivatives sector.
Banking System Stability Confirmed
"Our banking system is operating smoothly, with robust capital buffers and liquidity ratios," Chan stated. The HKMA is closely monitoring cross-border capital flows and coordinating with regulators to mitigate risks. Business professionals and investors are urged to stay alert to market shifts, though no immediate disruptions to Hong Kong's financial infrastructure are anticipated.
