Hong Kong's financial system is operating smoothly amid US tariff turmoil: HKMA

Darryl Chan, deputy chief executive of the Hong Kong Monetary Authority (HKMA), stated that Hong Kong will inevitably be affected by the trade war initiated by the US, but currently, Hong Kong's financial markets are functioning normally. Chan said that US trade war has not only caused significant volatility in financial markets recently but will also severely impact global economic trade in the long term, which is "certainly not a positive development." 

As a highly open financial market, the Hong Kong dollar (HKD) currency market maintains ample liquidity in both exchange rates and interest rates, with the HKD even strengthening slightly, primarily due to funds seeking safe havens. In the stock market, despite price fluctuations, overall trading remains orderly. Chan emphasized that the HKMA is closely monitoring the financial derivatives market and has detected no abnormalities thus far, with the banking system operating smoothly.