HK financial chief says market fluctuations over Brexit manageable

A senior Hong Kong official said the special administrative region (SAR) has the "confidence, experience and capability" to fend off market fluctuations caused by Britain's looming exit from the European Union last Friday.

Speaking in a visit to Beijing, Hong Kong Financial Secretary Tsang Chun-wah said Britain's vote to leave the EU on Friday took the market and many observers by surprise, but insisted that direct impacts on Hong Kong's real economy in the event of the "Brexit" is limited.

Hong Kong still has a sound economic foundation, a mature and prudent financial and banking system, plus a healthy government finance, Tsang said.

Friday's Brexit vote shocked global investors, and rocked stock markets around the world, with key indexes dropping 10 percent in Germany and about 8 percent in Japan and Britain.

Hong Kong's stock market was also down 2.92 percent.

Tsang said Hong Kong authorities had already taken precautionary measures against the possible Brexit before Friday's vote, and have conducted stress tests.

Hong Kong financial market operations were in order, Tsang said, pointing to ample bank liquidity and stable exchange and interest rates in the region.

(APD)