The head of Hong Kong’s de facto central bank has pledged to ensure the city’s financial systems are robust enough to mitigate risks, predicting that markets will be rocked by intensifying geopolitical rifts after Donald Trump begins his second US presidential term.
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Eddie Yue Wai-man, CEO of the Hong Kong Monetary Authority (HKMA), also said on Sunday that new policies had been approved for yuan stock products and they would soon launch on the market.
His announcement coincided with a call from Financial Secretary Paul Chan Mo-po for Hong Kong to seize new development opportunities in emerging markets following his trip to Indonesia last week.
Appearing on a radio programme, Yue said divergent monetary policies across the globe were creating risks for Hong Kong’s financial markets, with uncertainties surrounding domestic policies in the United States potentially affecting the city.
“For example, will tax reductions, anti-immigration measures and spending cuts lead to inflation, resulting in diverging interest rate trends?” he said.
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“The greater concern lies in foreign policies, such as tariffs, which are likely to introduce further uncertainties.”