Hong Kong's capital market is resilient
Recently, due to the continued spread of the new crown pneumonia epidemic in many countries and regions, which has adversely affected the development of the world economy, global financial markets have experienced huge fluctuations. In this context, Hong Kong's financial markets such as stocks, futures, and derivatives have maintained fair and orderly operations. At the same time, various institutions have also ensured the safety and health of employees, and once again demonstrated the full resilience of Hong Kong's capital market.
Guarantee efficient, stable, transparent operation of the market
As Hong Kong is an international financial center, the financial market will inevitably fluctuate with the external trend. According to Hong Kong media reports, the Financial Secretary's Office of the Hong Kong Special Administrative Region Government said recently that the Hong Kong stock market has also been affected by overseas markets, but regulators have been closely monitoring market conditions, continuously assessing potential systemic risks, and will take appropriate responses when needed. Measures. There is no unusual situation in the market. Hong Kong's currency and foreign exchange markets have also remained stable. The Hong Kong dollar exchange rate and interest rates have remained generally stable. The market is operating normally and there is no unusual trading activity.
According to the Xinhua News Agency, Li Xiaojia, the chief executive of the Hong Kong Stock Exchange, also said that the settlement and risk management systems of the Hong Kong Stock Exchange are operating normally, ensuring the efficient, stable and transparent operation of the market. At present, the Hong Kong Stock Exchange has established a comprehensive plan to ensure the continuity and stability of services. At the same time, the Hong Kong Stock Exchange has taken a series of precautionary measures at all operating locations in Asia and the United Kingdom to provide employees with the latest travel and health information to ensure that all employees are adequately protected.
Li Xiaojia said that at such a difficult time, the Hong Kong Stock Exchange as a market operator must overcome all difficulties and maintain the normal operation of the market, because the financial market is an important channel for many listed companies, market participants and investors to obtain liquidity. Li Xiaojia said that the financial market is currently facing global pressure. In the coming weeks or months, they will be more vigilant, monitor the market closely, and make every effort to ensure the normal operation of the market. An efficient capital market plays an important role in supporting economic stability.
Confident and capable of meeting challenges
Hong Kong's financial system has gone through many tests. In the Asian financial turmoil in 1997, the SARS shock in 2003, and the 2008 subprime mortgage crisis, Hong Kong has survived. Based on these experiences and lessons, Hong Kong has prepared for the past many years and adopted multiple rounds of earthquake prevention measures and stress tests, which strengthened the market's ability to cushion and withstand shocks, and established a solid foundation and defense line for the financial market. SAR government officials and financial regulators have made it clear that Hong Kong is capable of responding to the impact, including the epidemic, and protecting the confidence of investors in Hong Kong.
According to the Xinhua News Agency, Yu Weiwen, the president of the HKMA, believes that the Hong Kong banking system already has sufficient capital support, with a capital adequacy ratio of more than 20% and a liquidity coverage ratio of more than 150%. It also holds 1 trillion Hong Kong dollar exchange fund bills. Liquidity provides a strong buffer, so the linked exchange rate mechanism linked to the Hong Kong dollar and the United States dollar and the stability of the Hong Kong currency can be guaranteed.
According to Hong Kong media reports, Chen Maobo, the Financial Secretary of the SAR Government, said that Hong Kong has decided to increase the margin ratio of the stock and futures markets to further strengthen risk management. At the same time, the liquidity arrangements set up by the HKMA also provide support to banks when necessary to avoid tight market liquidity. "In the face of market fluctuations, Hong Kong will, as always, stand up to it, and strengthen defense measures again in due course to maintain Hong Kong's financial stability," said Chen Maobo.
Further enhance Shanghai-Shenzhen-Hong Kong connectivity
With the strong support of the central government, Hong Kong's financial market innovation mechanism is interconnected with the mainland market. Since the opening of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, they have continuously won the favor of the market, with the transaction volume steadily increasing, and the total number of cross-border positions has hit record highs, injecting fresh blood into the markets of the two places. For this reason, continuously optimizing the Shanghai-Shenzhen-Hong Kong Stock Connect to meet market demand and stimulate market vitality has also become a powerful tool for Hong Kong's financial market to fight risks.
According to Hong Kong media reports, the Hong Kong Stock Exchange recently announced that it will launch the latest Shanghai-Shenzhen-Hong Kong Stock Connect Northbound Transaction Optimization Measures-Special Independent Account (SPSA) centralized management services to further enhance the interconnection and interconnection mechanism between Hong Kong and the mainland stock market.
SPSA was set up by the Hong Kong Stock Exchange in 2015 for overseas institutional investors to invest in A shares. It has become a "must have" for foreign institutions, especially long-term institutional investors, to participate in Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. According to the Hong Kong Stock Exchange, this new service is planned to be launched in the first half of this year. The launch date depends on the approval of the Hong Kong Securities and Futures Commission and market preparation work.
Yao Jiaren, head of the Hong Kong Stock Exchange, believes that the Shanghai-Shenzhen-Hong Kong Stock Connect provides the most efficient, reliable and convenient channel for international investors to invest in the mainland stock market. As an important optimization of Shanghai-Shenzhen-Hong Kong Stock Connect, SPSA centralized management services will provide more convenience for institutional investors and market participants.
Wang Lingxi