Hong Kong Financial Secretary John Tsang said that while the stock market has seen significant fluctuations recently, market order remains sound, and there has been no evidence of massive capital outflows. The government will closely monitor market conditions to ensure the stability of the local financial system and the macroeconomy.
Meeting with the media today, John Tsang stated that the local market's trading, settlement, and overall operations continue to run smoothly. The Hong Kong dollar, foreign exchange, and interbank markets are functioning normally, with the exchange rate and interest rates remaining stable. He pointed out that maintaining a smooth and orderly market is of the utmost importance and that intervention is not necessary. The decline in Hong Kong stocks is affected by multiple factors, including international investors' concerns over slowing economic growth in emerging economies, significant volatility in Asia-Pacific and Mainland stock markets, capital outflows and currency depreciation in emerging markets, tensions on the Korean Peninsula, and the sharp decline in U.S. stocks last Friday.
He emphasized that the local banking system has high liquidity and the capability to cope with market volatility; the Hong Kong Monetary Authority can provide liquidity to banks if necessary. The Securities and Futures Commission has been conducting liquidity stress tests for brokers and has not received any reports of brokers facing difficulties. John Tsang further added that the local financial system is robust, and both the market and regulatory bodies have comprehensive risk management measures in place, possessing the experience and capacity to withstand external shocks.