Financial News
Written by: Zhang Weilun
2020-06-04 15:29
Date of last update: 2020-06-04 15:30Since the drafting of the National Security Act in the Minato District was approved by the National People's Congress and authorized by the Standing Committee, and President Trump has clearly stated that he would cancel the special status granted to Hong Kong, market participants have been concerned about the impact on the linked exchange rate system. Financial Secretary Chen Maobo and other financial officials have stated on many occasions that the linked exchange rate system will not change, or hope that market participants will distribute peace of mind. The chief economist of Jingshun, who was the father of the United Exchange, prayed for Lianhuo. In an interview with the Hong Kong Economic Daily, he made it clear that the United States has little chance of taking any measures against the United Exchange System, and pointed out that the Hong Kong dollar can survive under the Sino-US struggle. .
Qi Lianhuo pointed out that there are three reasons why the United States can hardly take measures against the Lian'ao system. The first is that the object of the dispute with the United States is China rather than Hong Kong. The second is that Hong Kong has 440 billion US dollars of foreign exchange reserves, most of which are held in US dollar bonds, which can be the basis for supporting the Hong Kong dollar. The third is the US financial institutions With a large amount of business in Hong Kong, if the linked exchange system is broken, the business of US-funded companies in Asia and China will also be affected.
He also pointed out that the US dollar is not only a currency of the United States, but a global currency. Therefore, the link between the Hong Kong dollar and the U.S. dollar does not require the approval of the United States. In fact, many countries that contradict the United States also have their currencies linked to the U.S. dollar.
Qi Lianhuo also said that if Trump cancels the special treatment granted to Hong Kong, it may hurt Hong Kong. As to whether the special treatment arrangement will be cancelled, there is still doubt.
Selling Hong Kong dollars to defend the Hong Kong Monetary Authority: Increased financial expenditure also increased Hong Kong dollar demand
Chen Maobo: Will not implement foreign exchange control and have confidence in the linked exchange rate
[Hong Kong version of National Security Law] Chen Maobo said that the HKMA and the People’s Bank of China reached an exchange agreement between Hong Kong dollar and US dollar last year
[Hong Kong version of the National Security Law] Chen Maobo said that Hong Kong does not require the consent of the United States to implement the linked exchange rate system
Linked exchange rate system