HKMA insists Hong Kong’s political crisis has not sparked capital flight even as data shows spike in funds leaving
- Government data showed the net outflow from Hong Kong was HK$163.5 billion in Q3, much higher than in previous quarters
- But Howard Lee, the HKMA’s deputy chief executive, says the underlying numbers show there is no need for concern
Hong Kong’s political crisis may have plunged the city into recession and wreaked havoc in the tourism, retail and property sectors.
But according to the Hong Kong Monetary Authority, it has not caused the huge flight of capital many had anticipated.
That is despite third-quarter balance of payment figures released by the government on Friday night showing what appears to be a large increase in funds leaving the city.
The data show the net outflow of funds from Hong Kong’s financial system came to HK$163.5 billion (US$20.97 billion), much higher than the HK$38.1 billion in the second quarter, and compared to a net inflow of HK$28.18 billion in the first.
It is also a lot higher than the HK$38.19 billion outflow seen in the fourth quarter of last year and the HK$74.9 billion in the third quarter of 2018.
But Howard Lee, deputy chief executive of HKMA, the city’s de facto central bank, said in an article posted on the authority’s website that the outflow was not as severe as the headline number might suggest.