The Chief Executive, Mr Tung Chee Hwa, met the visiting US Deputy Treasury Secretary, Mr Lawrence Summers, this evening and discussed the general economic situation in Hong Kong and the region in the light of the Asian financial turmoil.

While noting recent fluctuations on the local stock market, Mr Tung stressed that our economy was backed by strong fundamentals and he had full confidence in our market recovery.

"The Hong Kong SAR Government has the determination and ability to maintain the linked exchange rate system, and considers it necessary to do so," Mr Tung said.

Mr Tung and Mr Summers noted latest financial developments in South East Asia and exchanged views on ways to improve the situation and the role of the US in the current circumstances.

"We fully support the programmes put forward by the IMF for restructuring relevant Asian economies and consider that this is the best way forward," Mr Tung said.