Hong Kong financial system highly resilient: official

The financial system in Hong Kong is highly resilient with strong buffers, despite sharply volatile global markets due to the spread of the novel coronavirus in different places, Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue said Monday.

"Asian equity markets, including Hong Kong markets, have seen significant corrections and sharp volatility today, but local markets continue to operate in a smooth and orderly manner," Yue told media, noting that HKMA has been closely monitoring the financial markets following the U.S. Federal Open Market Committee's latest rate cut and other policy measures.

Yue noted the global financial markets have been highly volatile in the past few weeks.

While measures taken by central banks and fiscal authorities around the world will help support the economy and stabilize the markets, future market movements will depend on the effectiveness of the measures to contain the spread of the novel coronavirus in different places, he said.

"Going forward, the financial markets will continue to be volatile in response to news flows relating to both public health and financial measures," he added.

Yue stressed the local banking system is robust and well capitalized with ample liquidity and HKMA will monitor the market situation in coordination with other regulators.

"We will safeguard monetary stability in Hong Kong in accordance with the Linked Exchange Rate System," he said.