Hong Kong can withstand possible market shocks from Brexit because the city's banking system is highly liquid and its financial system is robust and resilient, Monetary Authority Chief Executive Norman Chan says.
Responding to the outcome of the UK referendum today that said yes to Brexit, he said the financial market has reacted immediately with notable volatility in the exchange rates of the British pound and Japanese yen.
The stock market in Asia, including Hong Kong, has seen significant selling pressure, he added.
However, he noted that the exchange and interest rates of the Hong Kong dollar remain stable.
Noting that there is much uncertainty in coming months as the UK will negotiate with Brussels on the arrangement for leaving the European Union, he advised Hong Kong people to stand ready for continued market volatility and manage risks prudently.
