Hong Kong

hong: From the perspective of the size and quality of Hong Kong's foreign exchange reserves, the government of the Hong Kong Special Administrative Region HKSAR and financial regulators can cope with short-term shocks and ensure the stability of Hong Kong's linked exchange rate system, according to Global Times China. Data showed that, as of the end of June 2019, the size of Hong Kong's Exchange Fund reached HK 4.14 trillion. Many market participants are worried about whether or not Hong Kong's financial market can maintain stability and if Hong Kong's linked exchange rate system can withstand the impact. Due to fluctuations in the global market, the investment income of the Exchange Fund may see a decline, but overall it can still make profits each year. With this much liquidity and cash reserve, Hong Kong should be able to cope with any short-term attack by speculative capital on the Hong Kong dollar. If calculated in the form of assets and US dollars, Hong Kong's Exchange Fund holds about 41.8 billion in cash and about 392.6 billion in convertible securities. (news.financializer.com). As reported in the news.