HK's financial market continues to function normally

Hong Kong's Acting Financial Secretary K C Chan said Monday that with the implementation of contingency plans by the government, Hong Kong's stock market, foreign exchange market and financial system have continued to function normally and in good order.

Chan said Hong Kong's financial market and the banking system are operating smoothly. "Hong Kong's dollar exchange rate remains generally steady and the foreign exchange market is operating as usual. There is ample liquidity in the interbank markets, with interbank rates remaining steady. The Real Time Gross Settlement systems and the Central Money markets Unit also continue to function normally,"Chan said.

Hong Kong Monetary Authority (HKMA) said Monday that Hong Kong' s banking system and the financial market continued to function normally last week. Hong Kong dollar was trading at around 7.760 levels per U.S. dollar.

According to HKMA reports on Monday morning, seven branches of seven banks were affected and remained temporarily closed. Some suspended ATMs in the affected areas have resumed normal operation while others were still closed. The HKMA has requested banks to resume normal services as soon as circumstances permit.

As the"Occupy Central" movement continues into the second week, Moody's latest statement on Monday said Hong Kong's AA1 rating and stable outlook remain supported by Hong Kong's strong buffers -- financial, institutional and economic. "Confidence remains in Hong Kong's exchange rate peg. Moreover, Hong Kong's fundamental buffers are substantial. The government has built up its fiscal reserves to a very high level, equivalent to 36 percent of GDP,"Moody's said.

While the impact of the movement will likely have negative consequences on Hong Kong's near-term economic performance, the key pillars of Hong Kong's economy like trade and logistics, financial and professional services do not seem to be directly affected by the political disorder.

Chairman of Hong Kong Exchanges and Clearing Limited Chow Chung Kong said Monday that Hong Kong's stock market functions normally and the system of exchange and clearing operates in good order.