Financial Secretary Paul Chan today hailed the International Monetary Fund's latest report which acknowledges Hong Kong’s robust policy frameworks and buffers for addressing economic challenges and safeguarding financial stability.
Releasing its endorsed Staff Report today, the IMF reinforced its assessment of Hong Kong’s economic and financial positions published on December 4.
The report reaffirmed Hong Kong’s position as a global financial centre and a regional trading hub with one of the most open economies in the world.
The IMF recognised that Hong Kong continues to maintain its competitiveness in the financial sector which is marked by the free movement of capital and information, a simple tax system, a sound regulatory system, the rule of law and quality professional services.
It noted that Hong Kong is well placed to address both cyclical and structural challenges given its significant buffers, despite weakened economic activity and mounting headwinds on the growth outlook.
The IMF welcomed the Government’s recent introduction of fiscal stimuli to support the economy and supports its three-pronged approach to containing housing market risks and increasing housing affordability.
It commended Hong Kong for its strong regulatory framework and prudential supervision, which helps ensure the resilience of the financial sector and safeguard financial stability.
It also reiterated its long-standing support for the Linked Exchange Rate System.
“We welcome the IMF’s recognition of the robust policy frameworks and ample buffers we have built over the past years, which stand us in good stead to weather the challenges ahead. The Government stands ready to make use of our fiscal buffers to support the economy as and when needed,” Mr Chan said.
Monetary Authority Chief Executive Eddie Yue said the IMF’s assessment once again confirms the robustness of Hong Kong’s financial system and its resilience to potential shocks.