HK's economic fundamentals strong: CE
Updated: 2008-10-01 07:11
By Cheung Sim-mok(HK Edition)
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Hong Kong officials reassured yesterday that the city's economic fundamentals remain solid, and it is prepared to withstand the ongoing global financial hurricane.
"The economic fundamentals of Hong Kong are good. Our regulatory system as well as our fiscal and economic systems are sound," Chief Executive Donald Tsang told reporters. "For this reason, we should have confidence in ourselves in dealing with a crisis of this kind."
The chief executive also stressed that Hong Kong has the experience to cope with this financial crisis.
"Over the last 10 years we overcame the problems of the Asian financial crisis and economic problems led by the SARS epidemic," he said. Tsang was the financial secretary who defended the currency peg system in Hong Kong during the Asian financial crisis.
The chief executive made the remarks after the US Congress rejected a $700-billion bailout plan yesterday morning, which was eagerly awaited by global markets as a relief, if not a total rescue.
Financial Secretary John Tsang pledged yesterday that the SAR government will make every effort to ensure there is least impact on Hong Kong.
"We expect strong wind to come and can feel it is approaching," he told reporters, referring to the US financial meltdown that took its toll on more European financial houses in the past few days.
"Before the storm comes, we reinforce the windows with tapes or bars," he said before Hong Kong Monetary Authority (HKMA) announced five temporary measures to boost liquidity at a time banks are extremely reluctant to lend.
The measures are "a precaution", he said.
Joseph Yam, chief executive of HKMA, urged investors to exercise caution, as financial markets would be very volatile. "The timing of the US bailout package is uncertain... This will affect financial markets globally," Yam said.
"Hong Kong, as a very open financial center, will not be excluded. Everyone has to be very careful," he added.
(HK Edition 10/01/2008 page2)