HK 'a safe haven in times of global turbulence'

Financial Secretary Paul Chan on Monday said Hong Kong’s safe‑haven status stood it in good stead to attract capital during times of war. Speaking on a radio programme, he said financial market volatility was "inevitable" following military action over the weekend by the United States and Israel against Iran. Chan stressed that investors often regarded the SAR as a secure destination for their funds during periods of market turmoil. “In Hong Kong, as you know, the free flow of capital is one of our core advantages," he said. "Coupled with the fact that the Hong Kong dollar is linked to the US dollar, that means our exchange rate remains relatively stable. "Whenever there is global turbulence in the past, we have served as a safe haven for capital.” Chan stressed that global investors were optimistic about the economic prospects and growth potential of China and the rest of the Asia-Pacific region, saying capital had already been flowing into the SAR for these reasons. Hong Kong will maintain robust management of financial risks, Chan said, and will continue its efforts to help companies of high quality go public. He also noted that Saudi Arabia had shown growing interest in investing in Hong Kong, saying the Middle Eastern country wanted to diversify away from a US-heavy portfolio. However, Chan added, visits to war-affected areas, including in the Middle East, will be postponed until the situation there stabilises. Edited by Tony Sabine