HK’s financial system resilient, says IMF

A report released on Tuesday by the International Monetary Fund gives an endorsement of Hong Kong’s resilience as a major global financial centre during the pandemic.

Based on research conducted in December, the report also commends Hong Kong’s progress in addressing climate change over the last decade and its efforts to build a sustainable financial ecosystem.

The IMF says the Government’s fiscal stimulus measures have helped mitigate economic shocks from the pandemic and that its approach to containing housing market risks have also been successful.

Financial Secretary Paul Chan commented: “I welcome the IMF’s recognition of our strong economic recovery supported by swift and bold policy responses.”

Iterating that “counter-cyclical measures, involving a total commitment of over HK$170 billion” had recently been announced in response to the “fifth wave” of Covid-19 in Hong Kong, Chan added: “We will continue to closely monitor the local epidemic situation, take necessary and effective fiscal measures and further strengthen our already robust institutional frameworks with a view to fostering economic recovery after the pandemic and safeguarding financial stability.”

Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, said: “I welcome the IMF’s reaffirmation of the robustness and resilience of our banking and financial system. The well-functioning Linked Exchange Rate System will continue to be an anchor of economic and financial stability for Hong Kong.”