Hong Kong's banking, financial systems remain robust, vibrant: official

HONG KONG -- Notwithstanding the challenges brought by the COVID-19 and the external environment over the past year, Hong Kong's banking system had remained robust, the Linked Exchange Rate System had been operating smoothly, and financial activities had stayed vibrant, said Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA).

Yue made the comments while having annual meetings with the mainland financial regulators on Dec 17, 21 and 22, which were held via video conference this year owing to the COVID-19 situation.

Yue led the delegation of Hong Kong Association of Banks (HKAB) to meet with Yi Gang, the governor of the People's Bank of China, Zhou Liang, vice chairman of the China Banking and Insurance Regulatory Commission and Fang Xinghai, vice chairman of the China Securities Regulatory Commission respectively to discuss the recent financial developments in Hong Kong and the mainland, as well as issues on financial cooperation that are of interest to various parties.

Yue briefed the mainland regulators on the latest developments in Hong Kong's financial markets and expressed gratitude for their support in the development of Hong Kong's international financial center which helps strengthen market confidence in Hong Kong's financial systems and its future development.

"The mainland financial regulators recognize Hong Kong's role as a financial hub and our strength in providing a world connection, and have full confidence that Hong Kong will continue to play an active role in the mainland's 'dual circulation' strategy," he said.

Zhuo Chengwen, chairperson of the HKAB, said the meetings enabled representatives of the banking industry to have a deeper understanding of the mainland's policy direction and the effort it has made to drive forward its financial reform and opening up.

"The further opening up of the mainland's financial markets will create more opportunities for the banking industry in Hong Kong. The industry will stand ready to capture the great business opportunities in the new 'dual circulation' strategy," Zhuo said.

The delegation discussed with the mainland regulators different topics covering cross-boundary financial cooperation, fintech and green finance. Meeting parties agreed to maintain close communication and work further to pursue various cooperation initiatives.