Secretary for Financial Services & the Treasury Christopher Hui has presented the latest financial developments and the new National Security Law in the Hong Kong Special Administrative Region at a webinar.

The event was co-hosted by the Hong Kong Economic & Trade Office (Toronto) and the Hong Kong-Canada Business Association.

While noting that Hong Kong has gone through a difficult year with the social unrest and emergence of COVID-19, Mr Hui said the city’s financial markets remain vibrant and orderly.

“The Hong Kong dollar exchange rate is stable and has stayed near the strong side convertibility undertaking. There has not been any noticeable sign of fund outflow from the banking system but rather, we have seen an inflow of over US$11 billion since June.

“Bank deposits have continued to go up over the past months and we have also seen a continuous flow of IPO activities with stock trading showing remarkable increases.”

He added that Hong Kong's fundamental strengths remain intact despite the pressure COVID-19 has imposed on economies and financial markets worldwide.

"A powerful combination of factors, including its prime location, rule of law, high-speed communications, free flow of information and capital, low and simple tax system, continue to make Hong Kong a leading international financial centre.”

The Secretary for Financial Services & the Treasury also addressed concerns about the new National Security Law's implications on Hong Kong's long-term financial stability.

"The implementation of the National Security Law will not have any impact on the normal functioning of the financial markets, nor the normal conduct of businesses.

“The way in which market participants handle their proprietary data, access or transmit information, conduct commercial analysis or express opinion will not be affected.

“The law will help restore social stability and with this backdrop, I have every confidence that the financial sector in Hong Kong will continue to develop and thrive.”

Mr Hui encouraged Canadian enterprises to tap into Hong Kong's strengths as a global financial centre, an asset and wealth management centre and an offshore renminbi business hub, as they expand and invest in the Guangdong-Hong Kong-Macao Greater Bay Area and beyond.