Interview: Financial market stability underpins Hong Kong as int'l financial hub

Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), poses for photos in the HKMA office building in Hong Kong, south China, March 12, 2021. Hong Kong's financial market stability has been the bedrock underpinning its position as an international financial center even when the world's major financial markets were experiencing economic shocks from the COVID-19 pandemic, Eddie Yue said. (Xinhua/Li Gang)

HONG KONG, March 15 (Xinhua) -- Hong Kong's financial market stability has been the bedrock underpinning its position as an international financial center even when the world's major financial markets were experiencing economic shocks from the COVID-19 pandemic, chief executive of the Hong Kong Monetary Authority (HKMA) Eddie Yue said.

"When the financial sector expressed concerns, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government and the HKMA clarified doubts and reaffirmed the advantages of 'one country, two systems,'" Yue said in an interview with Xinhua.

Hong Kong's financial market has functioned in a stable and orderly manner despite internal and external challenges, he noted.

According to the Hong Kong Exchanges and Clearing Limited (HKEX), 154 companies went public in Hong Kong in 2020, raising 397.5 billion HK dollars (about 51.19 billion U.S. dollars) in initial public offerings (IPOs), the highest figure since 2010.

Yue said that the market performance reflected investors' confidence in Hong Kong, and that the solid financial foundation of Hong Kong will continue to guarantee market stability in the future.

"If the world's major central banks tighten their loose monetary and fiscal stimulus policies, Hong Kong will properly manage the risk of funds leaving the Asian market," Yue said, adding that Hong Kong's financial markets could cope with any changes in the so-called U.S. sanctions.

"The country's support is very significant to Hong Kong's financial prosperity. As the country deepens reform and opening-up, Hong Kong has many opportunities especially for cross-boundary financial cooperation," he said.

The cross-boundary stock trading link between Hong Kong and the mainland is now in full swing. In 2020, the average daily turnover of Stock Connect northbound trading rose 119 percent and that of southbound up by 128 percent.

In today's low-interest environment, international investors favor China's economic development and have a strong interest in Chinese investment products. Hong Kong provides convenience for international investors by connecting the mainland with the international market, Yue said.

The Guangdong-Hong Kong-Macao Greater Bay Area is a good experimental site for financial connectivity between Hong Kong and the mainland, and more cross-boundary financial measures are expected to be introduced this year, he added.

Yue also said that the coronavirus epidemic has not slowed down Hong Kong's efforts to improve its competitiveness. Fintech and green finance are the general trend in the future and Hong Kong has already made plans in these areas.

Yue said that Hong Kong people have increased their use of fintech amid the epidemic. Therefore, the HKMA will continue to expand the application of fintech and strengthen personnel training.

With regard to the green finance, the HKMA will conduct financial climate change stress test on the banking system in the future, and will set up a platform for personnel training and data sharing. Hong Kong will also greatly increase the issuance scale of green bonds, he said. Enditem