The Financial Secretary, Mr John C Tsang, said today (November 9) that Hong Kong, with its sound economic fundamentals and robust and strong financial and banking sector, as well as the healthy fiscal position of the Government, has the confidence, the experience and the capability to tackle the external volatility and challenges.

     "I see that there is market concern over the impact of the results of the United States presidential election on the global economy. While the Hang Seng Index today dropped 494 points and there were plunges in the Asian market, particularly in Japan, Hong Kong's financial system has been functioning properly, and the securities, foreign exchange and futures markets continued to function in an orderly manner," Mr Tsang said.

     According to the reports of the regulatory authorities, the financial markets and the banking system have operated normally, the exchange rate and interest rate of the Hong Kong dollar remain stable, the liquidity of the banking system is adequate and the offshore Renminbi market is stable. Hong Kong's regulatory authorities will continue to monitor the situation closely and maintain close communication with the Hong Kong Exchanges and Clearing Limited and the trade, and will also conduct stress tests on the financial intermediaries to ensure that the financial markets operate properly and to guard against systemic risks.

     The US is an important trading partner of Hong Kong and has a great influence on global finance and the world economy. The Government will closely monitor whether the election results will have an impact on the recovery of the US economy, global trade, financial market stability and Hong Kong's economy.

     Mr Tsang also pointed out that there may be further volatility in the global financial market in the near future. He reminded investors to keep calm and manage risks prudently.

Ends/Wednesday, November 9, 2016
Issued at HKT 20:55

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