China’s top banking regulator issued assurances that Hong Kong’s linked exchange-rate system is stable and the city’s unique strength as an international financial center will not be weakened under Beijing’s pending new national security law for the special administrative region, reported Caixin.
The China Banking and Insurance Regulatory Commission (CBIRC) said Thursday that Hong Kong’s role as a global financial hub will be further consolidated in the future. It was the first official response from the Beijing regulator after the Trump administration threatened last week to strip Hong Kong of its special treatment as the US determined the city is no longer sufficiently autonomous from the Chinese mainland with the new law.
The CBIRC spokesperson cited Hong Kong’s sound legal and financial systems, large number of highly educated financial professionals, strong economic foundation, world-class business environment, foreign exchange reserves of $440 billion and a fiscal reserve of more than HK$1 trillion ($129 billion).
Damaging Hong Kong’s financial stability would not be in the interests of local financial institutions as well as mainland financial institutions and all foreign financial businesses including US companies, the CBIRC said.