HK financial market continues to function properly

     The Financial Secretary, Mr John C Tsang, said today (September 30) that with the implementation of contingency plans by the government bureau and departments in charge of financial matters and financial institutions for two days, the stock market, the foreign exchange market and the financial system have been functioning properly and in good order.

     Apart from some branches, offices or ATMs of individual banks that have been closed temporarily, the banking system and the Currency Board mechanism have been functioning normally. There is ample liquidity in the banking sector, with the interbank interest rates being generally stable and remaining at levels similar to those last week. The Hong Kong dollar exchange rate remains generally steady and no abnormalities have been found in the foreign exchange market. As at 4pm today, the four Real Time Gross Settlement systems recorded a total transaction volume equivalent to HK$1.7 trillion, which is at similar levels to normal.

     The stock market operated smoothly with turnover of $84.7 billion for the entire day. The Hang Seng Index dropped by 296 points (about 1.3 per cent). The Securities and Futures Commission is not aware of any major issues.

     Mr Tsang said, "The Hong Kong Special Administrative Region Government will continue to closely monitor the market situation with a view to maintaining normal market operations."

Ends/Tuesday, September 30, 2014
Issued at HKT 19:01