Escalating geopolitical tensions in the Middle East could lead to significant volatility in global financial markets but the Hong Kong Special Administrative Region government has comprehensive plans in place to respond to any potential disruption, Hong Kong Financial Secretary Paul Chan Mo-po said on Sunday night.

Speaking on a television program, Chan said while Hong Kong’s direct trade and investment links with Iran are limited, the broader uncertainty generated by the conflict will inevitably impact global financial systems.

He suggested that some capital might flow from the Middle East into Hong Kong as a safe haven, and emphasized that the SAR government is prepared to manage associated risks and market fluctuations with prudence and well-established protocols.

Chan also warned that the conflict could affect global oil and gold prices, as well as international trade transport costs and delivery times. He said the government is monitoring these developments.

All safe

According to the Immigration Department, as of 5 pm Sunday, it had received inquiries from 194 Hong Kong residents in regions affected by the conflict. The inquiries mainly pertained to flight information, and all individuals reported being in safe locations.

Flights canceled

Meanwhile, the Airport Authority Hong Kong announced that 12 flights from Hong Kong International Airport had been canceled as of 5 pm Sunday due to the situation in the Middle East, with an additional eight flights scheduled for Monday also suspended.