HKMA: «No Need and No Intention» for De-Pegging
Eddie Yue Wai-man takes over the helm as new chief of the Hong Kong Monetary Authority and assured the public that there was «no need and no intention» to remove the peg between the Hong Kong and U.S. dollar.
«I feel a much bigger burden on my shoulders amid such a challenging environment,» Yue said in his first day in office citing headwinds such as the global economic slowdown, the U.S.-China trade war, Brexit and the nearly four-month long social unrest in Hong Kong.
Yue noted that the maintenance of stability in finical markets and the peg will be his key focus, adding that recent decreases in deposits was due to strong demand in initial public offerings.
«We see no need and have no intention of changing the peg which is a well-established system,» he said, according to a «SCMP» report. «Going forward, we will continue to closely monitor market developments to ensure currency stability and the orderly operation of the money market under the system.»
Fintech Focus
In addition to stability, Yue also underlined financial technology as a key focus for development in order to strengthen Hong Kong’s status as an international financial center and gateway to the Greater Bay Area.
«International investors still want to use Hong Kong as a gateway to enter China through the stock and bond connect schemes,» he said.
Yue joined the central bank when it was first founded in 1983 and now succeeds the outgoing Norman Chan Tak-lam.
During his statement, he also highlighted moments in his career when he defined the peg under different roles through the 1997 Asian financial crisis and the 2008 global financial crisis.
