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HK Financial Market Remains Quiet, Stable
Hong Kong has not been adversely affected by the currency and financial market weakness in the Asia-Pacific region, which instead has led to a flow of funds into Hong Kong as a safe haven.
The conclusion was made after the Subcommittee on Currency Board Operations under the Exchange Fund Advisory Committee of Hong Kong reviewed the local financial market on October 1-21.
The subcommittee announced here Monday that the period under review was generally quiet and stable.
The subcommittee members said the Hong Kong dollar appreciated in early October, as a result of strong demand for Hong Kong dollar assets, which was reportedly equity related.
The Hong Kong Monetary Authority (HKMA), in response to bank offers, sold a total of 390 million HK dollars (US$50 million).
The Aggregate Balance had risen to 790 million HK dollars (US$101 million), leading to a softening of local interest rates and an easing of the exchange rate, which had remained generally steady throughout the rest of the period.
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