This undated photo shows the building of the Hong Kong Monetary Authority. (IC)

HONG KONG – The Hong Kong Monetary Authority (HKMA) has said that it has the capability, resources and determination to safeguard the city’s monetary and financial stability. 

The free flow of capital and free convertibility of the Hong Kong dollar will continue to be safeguarded by the Basic Law of the Hong Kong Special Administrative Region (HKSAR). 

RELATED ARTICLES

• HK frees HK$500 billion in bank capital to lift economy

• HK's Exchange Fund suffers record losses of HK$86.1b

• As HK economy sinks, scant liquidity underpins dollar

The SAR’s financial system is robust and resilient, and it is well positioned to withstand shocks, said the HKMA 

It sees no need and has no plan to change the well-established Linked Exchange Rate System, said the HKMA. 

The HKMA made the remarks on social media  on Saturday evening after it noted there were rumors that Hong Kong might impose foreign exchange control, stressing that special administrative region’s financial system is robust and resilient and it is well positioned to withstand shocks. 

According to the HKMA, Hong Kong's foreign reserves is over US$440 billion, which is more than twice of Hong Kong's monetary base.  

Hong Kong has highly capitalized banks, with capital adequacy ratio at 20 percent, abundant liquidity, with liquidity coverage ratio at 160 percent, and good asset quality, with classified loan ratio at 0.6 percent.