New Coronary Pneumonia ｜ Chen Maobo: Pressure on the global economy Hong Kong ’s financial risks remain under control

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Written by: Huang Yongyu

2020-04-26 11:24

The Financial Secretary Chen Maobo mentioned in his blog today (26th) that the "Financial Regulatory Authority Council" led by him has been conducting "cross-market, linkage, and all-weather" monitoring of the market. The stock market has increased in the past year. Deposit requirements reduce the risk of leverage in the spot market, conduct multiple rounds of stress tests, and strengthen on-site inspections of market participants to ensure that the market operates normally.

As for the real estate market, after several rounds of prudential macro-demand management measures, and the current overall supply is still tight, even if the current property prices are still at a high level that the market is difficult to afford, there is little risk of a cliff-like decline in the residential property market . He emphasized that the New Coronary Pneumonia epidemic has exerted pressure on the global and local economic and financial markets, but the financial risks in Hong Kong are still under control.

The Financial Secretary Chen Maobo pointed out that the epidemic has put pressure on the global and even Hong Kong economic and financial markets, but the financial risks in Hong Kong are still under control. (Profile picture)

Chen Maobo said that in order to ensure the liquidity of the bank and the space for lending, it has worked with the HKMA to promote various aspects of the work, to ensure that the Hong Kong dollar funds, US dollar funds in the market and the internal resources of the bank are in a relatively sufficient state. Convenience banks actively provide loans to enterprises to overcome the current economic difficulties. As for the 100% government-guaranteed preferential low-interest loan plan proposed in the budget to assist enterprises in turnover, 180 applications have been approved in the first four days after the launch, involving more than 400 million Hong Kong dollars.

No large-scale capital flows were seen.

He also pointed out that although the social events and violent shocks that began in June last year have damaged market confidence, they have not caused significant capital outflows. Although the recent new pneumonia epidemic has made Hong Kong stocks significantly follow The periphery was under pressure, but there was also no large-scale capital flow. On the contrary, the Hong Kong dollar continued to be strong, hovering at a strong exchange guarantee level of 7.75 against a dollar, and even hitting this upper limit many times, reflecting the inflow of funds.

Chen Maobo pointed out that as of last Thursday, the HKMA has undertaken US dollar selling from the market four times and released a total of 7.71 billion Hong Kong dollars of funds. The total balance of the Hong Kong banking system has increased to 66.8 billion Hong Kong dollars. He emphasized that the linked exchange system mechanism also plays a role in maintaining the stability of the Hong Kong dollar exchange rate. In addition, Hong Kong has abundant foreign exchange reserves to meet the exchange needs of capital outflows that occur at any time.

Hong Kong dollar exchange rate trend over the past 15 years (Financial Secretary's blog)

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Chen Maobo Financial Secretary