HONG KONG - Hong Kong had no plans to change its currency’s peg to the US dollar and the Asian financial hub has not seen any “obvious” capital outflows after Washington moved to strip the city of its special status in US law, the city’s finance secretary said.

Paul Chan Mo-po said on Monday that authorities were confident in defending the Hong Kong dollar exchange rate, with foreign exchange reserves twice the size of the entire monetary base and liquidity in the banking system "very healthy and strong".

Paul Chan Mo-po said that authorities were confident in defending the Hong Kong dollar exchange rate, adding that capital will continue to flow freely in and out of Hong Kong

Chan added capital will continue to flow freely in and out of Hong Kong.

READ MORE: HKMA: Capable of maintaining monetary, financial stability

Hong Kong's linked exchange rate system is supported by its more than US$440 billion of abundant foreign exchange reserves and backed by the nation, Chan wrote, stressing that the system has withstood the test of time and is irrelevant to US policies.

Chan said that the national security legislation for Hong Kong will not affect free flow of capital into and out of Hong Kong, operation of the linked exchange rate system, and Hong Kong's status as an international financial center.

Although the threatened US sanctions have caused a little disruption on the market, the actual impact is limited for the time being, Chan wrote in his blog.

Hong Kong does not adopt foreign exchange control and ensures the convertibility of the Hong Kong dollar and free flows of capital, Chan noted, stressing that the policy, one of the determining factors of Hong Kong's financial center status, is enshrined in the Basic Law.

Responding to US threat to impose sanctions against Hong Kong, Chan wrote that the US move will only have limited impact on Hong Kong's goods imports and exports.

The United States raked in nearly US$300 billion of surplus from its trade with Hong Kong during the past decade, Chan noted, adding that any restriction will, in the meantime, harm the interests of US companies.

READ MORE: Fitch remains 'confident' about HK's financial autonomy

The national security legislation is aimed at bringing peace back to Hong Kong and restoring a safe and stable business environment, Chan wrote, adding that there is no need for businesses to worry about it.

Chan stressed that Hong Kong's international financial center status is not a gift from other countries but a result of its own achievement and the strong support from the motherland.

As the second largest economy, China, which is deepening reform and opening-up and creating financial services demand in the process, will provide a solid support for Hong Kong to remain as the global financial center and continue to move forward amid external uncertainties, Chan wrote.