Officials insist Hong Kong banks ready to defend against any Brexit turmoil
HKMA’s Norman Chan says financial sector has passed through many times of crisis and has ‘prepared well to cope with any fluctuations in coming days’
Hong Kong’s central bank and the securities watchdog say they have taking action to defend the local investment market from any potential global turmoil triggered by the British EU referendum.
Banks and brokers in Hong Kong reported this week they have already collected two to three times more money from clients as margin deposits for forex and futures trading, particularly in sterling, gold and futures contracts.
Regionally, Singapore Exchange on Thursday also collected more deposits for stock margin trading, to prepare for any volatily linked to the British vote, the result of which expected early Friday afternoon Hong Kong time.
“There will be an impact on the Hong Kong banking sector, whether Britain stays in or leaves the EU,” said Norman Chan Tak-lam, chief executive of Hong Kong Monetary Authority, speaking on the sidelines of a public event on Thursday.
“We have already alerted the banks to prepare themselves to fend off any volatility in the forex market.
“However, I do not think we need to worry too much. The Hong Kong banking sector has passed through many a crisis in past years, and they have prepared well to cope with any fluctuations in the market in coming days.”