Business & Finance

Financial market functioning well: FS

(September 29, 2014)

The stock market, foreign exchange market and financial system have maintained normal operations for the entire day, Financial Secretary John Tsang says, adding government bureaus, departments and financial institutions had activated contingency plans this morning in the wake of the Occupy Central movement's unlawful actions. 
 
Mr Tsang said the Government and all financial regulators and institutions have contingency plans to deal with unexpected situations to ensure the normal operation of the financial system’s core functions and to minimise any impact.
 
According to Monetary Authority reports, the banking system operated normally this morning. The Currency Board mechanism and foreign exchange market also functioned well, and the exchange rate remained generally steady. There is ample liquidity in the interbank markets. The payment and settlement systems and the Central Moneymarkets Unit continue to operate normally, with transaction volumes at near normal levels.
 
As at 3pm today, the four Real Time Gross Settlement systems recorded a total transaction volume equivalent to $1.25 trillion. The transaction volume is at similar levels to normal.
 
The stock market operated smoothly with turnover of $88.9 billion for the entire day. The Hang Seng Index dropped 449 points (about 1.9%). The Securities & Futures Commission is not aware of any major issues.
 
In light of possible market fluctuations in the short term, investors should stay alert to associated risks. The Government will monitor the market situation and strive to maintain the market's normal operations, Mr Tsang added.
 
While some major thoroughfares on Hong Kong Island have been closed due to public meetings in the vicinity of Central, the city remains calm and well ordered.
 
About 30 individual bank branches, offices or ATMs in the affected areas are closed temporarily, accounting for less than 3% of the total number. When the situation permits, relevant banks will re-open the facilities as soon as possible.