https://www.scmp.com/rss/132696/feed The Hong Kong Monetary Authority oversees Hong Kong’s monetary system. It was founded in 1993 when the Office of the Exchange Fund merged with the Office of the Commissioner of Banking. Its responsibilities include maintaining currency stability, monitoring Hong Kong’s banking system and managing the Exchange Fund. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Hong Kong is seen as a top regional hub for technology set for further expansion, according to a large number of local and global artificial intelligence and big data companies surveyed by the FinTech Association of Hong Kong (FTAHK), an industry advisory group. The city is considered an attractive location to build an AI or big data business because of its role as a financial hub and well-developed tech ecosystem, according to the Artificial Intelligence and Big Data report by the FTAHK, which... https://www.scmp.com/tech/tech-trends/article/3178975/hong-kong-still-regional-tech-hub-ai-and-big-data-more-work-needed?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3178975/hong-kong-still-regional-tech-hub-ai-and-big-data-more-work-needed?utm_source=rss_feed Tue, 24 May 2022 10:30:15 +0000 Hong Kong’s first green bond for retail investors slipped on its first day of trading, a disappointing start for supporters of environmentally sustainable investments following its oversubscription two weeks earlier. The three-year note started trading at HK$99.70 per HK$100 bond on Thursday. The bond offers a 2.5 per cent return on a minimum investment of HK$10,000 (US$1,274). Its HK$20 billion offering was touted by Hong Kong’s government to be the biggest retail green bond issuance globally... https://www.scmp.com/business/markets/article/3178292/hong-kongs-first-retail-green-bond-drops-trading-debut-lacklustre?utm_source=rss_feed https://www.scmp.com/business/markets/article/3178292/hong-kongs-first-retail-green-bond-drops-trading-debut-lacklustre?utm_source=rss_feed Thu, 19 May 2022 02:18:33 +0000 Hong Kong’s de facto central bank stepped into the currency market again on Saturday morning as it sought to defend the local dollar against the weakening effects of capital outflow. It was the fourth intervention in three days by the Hong Kong Monetary Authority (HKMA), bringing its total support for the currency to US$1.49 billion. The local dollar had fallen to its weakest level in more than three years. The HKMA bought HK$3.164 billion (US$403 million) on Saturday morning to bolster the... https://www.scmp.com/business/banking-finance/article/3177600/hong-kong-sells-us1-billion-two-days-defend-currency-peg?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3177600/hong-kong-sells-us1-billion-two-days-defend-currency-peg?utm_source=rss_feed Fri, 13 May 2022 04:49:02 +0000 Hong Kong government’s inaugural Retail Green Bond has been oversubscribed 1.2 times by small investors, underlining the city’s potential as a fundraising hub for environmentally friendly projects. The three-year note, which offers a 2.5 per cent return on a minimum investment of HK$10,000 (US$1,274), attracted HK$32.88 billion (US$4.2 billion) from 493,000 people, a government spokesman said on Friday. Subscriptions were on sale from April 26 until 2pm on Friday, and proved a hit with... https://www.scmp.com/business/banking-finance/article/3176815/inaugural-retail-green-bond-attracts-us42-billion?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3176815/inaugural-retail-green-bond-attracts-us42-billion?utm_source=rss_feed Fri, 06 May 2022 11:43:51 +0000 Hong Kong’s cost of money soared by the most in 22 years as the city’s de facto central bank followed the US Federal Reserve to usher in an era of faster, bigger rate increases, even while the local economy is reeling from a slump. The city’s base lending rate rose by 50 basis points to 1.25 per cent, after the Fed raised its rate by half a point, according to a statement by the Hong Kong Monetary Authority (HKMA). That marked the biggest one-time increase in Fed rates since 2000. “The interest... https://www.scmp.com/business/banking-finance/article/3176553/hong-kongs-base-rate-rises-50-points-cost-money-makes-its?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3176553/hong-kongs-base-rate-rises-50-points-cost-money-makes-its?utm_source=rss_feed Wed, 04 May 2022 23:25:26 +0000 Hong Kong’s Exchange Fund reported its third-biggest quarterly investment loss in nearly two decades, as the city’s financial war chest suffered what the de facto central bank called a “triple whammy” hit of devaluing equities, bonds and a stronger US dollar. The fund lost HK$55 billion (US$7 billion) from investments in the first quarter, its third-biggest loss in 18 years since the fund began reporting its quarterly performance, according to data provided by the Hong Kong Monetary Authority... https://www.scmp.com/business/article/3176353/hong-kongs-exchange-fund-posts-us7-billion-quarterly-investment-loss-amid?utm_source=rss_feed https://www.scmp.com/business/article/3176353/hong-kongs-exchange-fund-posts-us7-billion-quarterly-investment-loss-amid?utm_source=rss_feed Tue, 03 May 2022 07:44:24 +0000 Hong Kong’s banking system held up well amid the fifth wave of Covid outbreak, as deposits and loans increased during the first quarter, according to data from the Hong Kong Monetary Authority (HKMA). The amount of Hong Kong dollars deposited into the city’s banks swelled to HK$7.58 trillion (US$965 billion) by the end of March, up 2.2 per cent from the beginning of the year and 1 per cent from a year earlier. Total deposits – which include Hong Kong dollars, US dollars and other currencies –... https://www.scmp.com/business/banking-finance/article/3176040/hong-kong-deposits-loans-rise-first-quarter-loans-stock?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3176040/hong-kong-deposits-loans-rise-first-quarter-loans-stock?utm_source=rss_feed Fri, 29 Apr 2022 23:30:17 +0000 Chad Bray Chad Bray Hong Kong is taking another step to establish the merits of a digital currency for public use, as the monetary authority turns to the market for input on the design and policy issues surrounding the so-called e-HKD. The Hong Kong Monetary Authority (HKMA) is now asking industry leaders and consumers for additional feedback on the potential benefits and pitfalls of creating a digital form of the local dollar, in a follow-up to a technical white paper published in October. The issues include... https://www.scmp.com/business/banking-finance/article/3175705/hong-kong-takes-another-step-e-hkd-hkma-seeks-feedback?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3175705/hong-kong-takes-another-step-e-hkd-hkma-seeks-feedback?utm_source=rss_feed Wed, 27 Apr 2022 10:46:32 +0000 The head of Hong Kong’s de-facto central bank gave a rare profit warning, saying the Exchange Fund would face a “triple-whammy” situation with equities, bonds and foreign exchange valuation falling at the same time if the US speeds up its interest-rate increases. “Moving into 2022, investors were treading on thin ice when managing their assets amid multiple uncertainties, ranging from the evolving pandemic situation and rising inflation, to policy shifts by major central banks,” said Eddie Yue... https://www.scmp.com/business/banking-finance/article/3175449/exchange-fund-faces-triple-whammy-if-equities-bonds-and?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3175449/exchange-fund-faces-triple-whammy-if-equities-bonds-and?utm_source=rss_feed Mon, 25 Apr 2022 09:46:44 +0000 The eminence grise of Hong Kong’s banking circles has come out swinging against the United States in an unusual webinar that set a strident tone against the economy with which the city’s currency and monetary policy are linked. The US government, under Donald Trump and his successor Joe Biden, has “weaponised” the financial markets, a “stupid and crazy” strategy that would undermine the US dollar’s status as the world’s reserve currency, said Joseph Yam Chi-kwong, the former chief executive of... https://www.scmp.com/business/banking-finance/article/3174030/crazy-us-sanctions-against-china-russia-weaponise?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3174030/crazy-us-sanctions-against-china-russia-weaponise?utm_source=rss_feed Tue, 12 Apr 2022 12:40:24 +0000 Hong Kong’s Tracker Fund (TraHK) is poised to appoint a manager to replace State Street Global Advisors, a move aimed at mitigating the risk of letting the city’s largest exchange-traded fund (ETF) become a bone of contention in rising US-China tension. A seven-member supervisory committee chaired by George Hongchoy Kwok-lung may soon name the winner of the tender to manage TraHK, said two people familiar with the plan. The new mandate may be subject to regular reviews, and its duration would... https://www.scmp.com/business/article/3172019/tracker-fund-may-replace-state-street-manager-forestall-risks-hong-kongs?utm_source=rss_feed https://www.scmp.com/business/article/3172019/tracker-fund-may-replace-state-street-manager-forestall-risks-hong-kongs?utm_source=rss_feed Sun, 27 Mar 2022 23:00:19 +0000 The Hong Kong Monetary Authority (HKMA) raised the city’s base lending rate by 25 basis points to 0.75 per cent in the first widely heralded move since December 2018, which is expected to add upwards pressure to mortgage payments linked to interbank rates. Since Hong Kong will need to follow rate rises in the US an expected 10 times until the end of next year, the base rate is expected to increase to 3.25 per cent by the end of 2023 assuming each increase at 25 basis points. This will be the... https://www.scmp.com/business/article/3170744/hong-kong-raises-base-rate-25-basis-points-first-time-2018-after-first-us?utm_source=rss_feed https://www.scmp.com/business/article/3170744/hong-kong-raises-base-rate-25-basis-points-first-time-2018-after-first-us?utm_source=rss_feed Thu, 17 Mar 2022 01:01:21 +0000 Hong Kong’s monetary authority has instructed the city’s banks to allow only vaccinated employees to enter their branches and offices, as it enforces the government’s vaccine pass policy amid a surge on Covid-19 cases. The de facto central bank “strongly encourages” banks to admit only staff who have received at least one vaccine shot into their workplace, the Hong Kong Monetary Authority (HKMA) said. Banks have two weeks to notify the HKMA when they would enforce the measure. Hong Kong’s... https://www.scmp.com/business/article/3167623/hkma-instructs-hong-kongs-165-banks-allow-only-vaccinated-staff-branches?utm_source=rss_feed https://www.scmp.com/business/article/3167623/hkma-instructs-hong-kongs-165-banks-allow-only-vaccinated-staff-branches?utm_source=rss_feed Fri, 18 Feb 2022 13:38:28 +0000 Enoch Yiu Enoch Yiu Hong Kong will soon roll out a pilot scheme for the use of the digital yuan – or e-CNY – in the city for shopping and dining, making the special administrative region the first offshore city to use this digital currency outside mainland China. “The pilot testing of e-CNY will be an important move for Hong Kong to strengthen its role as an international offshore yuan trading centre,” Eddie Yue Wai-man, CEO of the Hong Kong Monetary Authority (HKMA), the city’s de facto central bank, said on... https://www.scmp.com/business/banking-finance/article/3166109/hong-kong-sets-stage-e-cny-use-launch-pilot-soon-after?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3166109/hong-kong-sets-stage-e-cny-use-launch-pilot-soon-after?utm_source=rss_feed Mon, 07 Feb 2022 09:42:07 +0000 Hong Kong’s Exchange Fund, the war chest used to defend the local currency, saw its earnings drop 28 per cent in 2021, as its performance was hit by a slump in the city’s stock market. The fund made a gain of HK$170.5 billion (US$21.9 billion) last year compared with HK$235.8 billion in 2020, according to the Hong Kong Monetary Authority, which is responsible for investing the city’s fiscal reserves. The fund had total assets of HK$4.58 trillion as of November. The Exchange Fund made a gain of... https://www.scmp.com/business/banking-finance/article/3164950/exchange-funds-gains-slump-28-cent-us219-billion-2021-hong?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3164950/exchange-funds-gains-slump-28-cent-us219-billion-2021-hong?utm_source=rss_feed Thu, 27 Jan 2022 09:39:52 +0000 Hong Kong’s banking industry is making sure its embrace of virtual banking and electronic services does not leave anyone behind, as they reach back to paper forms to cater to the city’s rapidly greying population. Over the next six months, each of the 160 banks and over 300 deposit-taking companies in the city will have to ensure they are able to serve elderly customers and less tech-savvy users, according to a new code of conduct announced on Friday by the Hong Kong Association of Banks (HKAB)... https://www.scmp.com/business/banking-finance/article/3159252/new-rules-ensure-hong-kong-banks-make-services-easily?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3159252/new-rules-ensure-hong-kong-banks-make-services-easily?utm_source=rss_feed Fri, 10 Dec 2021 10:27:24 +0000 Hong Kong is staking a claim as Asia’s green finance hub, as the number and value of bonds related to environment, social and governance (ESG) quadrupled over the past year. As many as 90 ESG bonds were issued this year, raising a combined HK$270 billion (US$34.62 billion), four times what was sold last year, according to Nicolas Aguzin, chief executive of Hong Kong Exchanges and Clearing Limited (HKEX), the operator of the city’s bourse. “HKEX has turned climate risk into opportunities by... https://www.scmp.com/business/banking-finance/article/3158650/hong-kongs-esg-bond-issuance-quadruples-almost-us35?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3158650/hong-kongs-esg-bond-issuance-quadruples-almost-us35?utm_source=rss_feed Mon, 06 Dec 2021 10:05:23 +0000 Hong Kong has priced its first yuan-denominated green bonds, raising 5 billion yuan (US$783 million) just days after selling its first euro-denominated green offering as the city seeks to position itself as Asia’s hub for sustainable finance. The city’s government sold 2.5 billion yuan in three-year green bonds and 2.5 billion in five-year green bonds in its fourth offering since announcing its sustainable bonds programme in 2018, according to a person familiar with the offering. Financial... https://www.scmp.com/business/banking-finance/article/3157195/hong-kong-prices-first-yuan-denominated-green-bonds?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3157195/hong-kong-prices-first-yuan-denominated-green-bonds?utm_source=rss_feed Wed, 24 Nov 2021 08:30:31 +0000 The Lunar New Year holiday in February interrupted stock market listings activity, which caused deposits in Hong Kong’s banking system to fall sharply during the month, official data showed on Wednesday. Hong Kong dollar deposits in the local banking system plummeted 11.8 per cent in February, or HK$1.02 trillion (US$131.48 billion), to HK$7.65 trillion. There were fewer initial public offerings as the holiday marking the start of the Year of the Ox gave investors a break from chasing an IPO... https://www.scmp.com/business/banking-finance/article/3127826/hong-kong-dollar-deposits-plummet-12-cent-february-new?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3127826/hong-kong-dollar-deposits-plummet-12-cent-february-new?utm_source=rss_feed Wed, 31 Mar 2021 12:17:00 +0000 The Hong Kong Monetary Authority said the local currency’s weakness in recent weeks is a blip as sentiment on markets soured. Several large stock offerings could spur capital inflows and reverse the mini-slump. That’s the message from Eddie Yue Wai-man, chief executive of the local de facto central bank, to currency peg doubters as the Hong Kong dollar lost 0.15 per cent against the greenback over the past three months, accelerating when the benchmark Hang Seng Index tumbled from its February 17... https://www.scmp.com/business/banking-finance/article/3125402/hong-kong-tells-currency-doubters-watch-out-blockbuster?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3125402/hong-kong-tells-currency-doubters-watch-out-blockbuster?utm_source=rss_feed Sun, 14 Mar 2021 23:00:15 +0000