HKMA new chief defends currency peg
(2 October 2019 – Hong Kong) The new chief executive of Hong Kong Monetary Authority said that his main priorities were to defend the peg linked system and strengthen the city’s status as an international financial centre and gateway to Mainland China.
“I feel a much bigger burden on my shoulders amid such a challenging environment,” said Eddie Yue Wai-man, chief executive of Hong Kong Monetary Authority, referring to the global economic slowdown, the US-China trade war, Brexit and the nearly four-month long social unrest in Hong Kong.
“We are going to face a lot of challenges, but my team and I plan to maintain the stability of the financial market and the peg linked exchange system ... We see no need and have no intention of changing the peg which is a well-established system. Going forward, we will continue to closely monitor market developments to ensure currency stability and the orderly operation of the money market under the system,” Yue said on his first day in office on Wednesday.
In naming Yue as only the third chief executive of the HKMA, the government has opted for continuity and stability in such challenging times.
Yue also said that the HKMA would develop fintech and take steps to strengthen Hong Kong’s role as an international financial centre and gateway to the Greater Bay Area.
“International investors still want to use Hong Kong as a gateway to enter China through the stock and bond connect schemes,” Yue said.
The new chief said the HKMA had urged banks to take a lenient approach while handling loan applications from small and medium-sized enterprises to help them cope with a challenging business environment.