Monetary Authority Chief Executive Joseph Yam says the US credit crisis has caused no structural impact to Hong Kong's finance market. He called on market participants to study the situation and manage risks.

The US Federal Reserve announced yesterday two initiatives to bolster market liquidity and promote orderly market functioning. The New York Federal Reserve Bank has been authorised to create a lending facility to upgrade primary dealers' ability to provide financing to participants in securitisation markets. The measure will be in place for six months and may be extended as conditions warrant.

The primary credit rate has also been cut from 3.5% to 3.25% and the maximum maturity of primary credit loans raised to 90 days from 30. For details click here.

Mr Yam told reporters today the measures taken by the US Federal Reserve will help stabilise the market and boost orderly market functioning.

While the crisis will not greatly hurt Hong Kong's finance market, Mr Yam said nervous sentiment in global markets might result in volatile trading. He urged market participants to ensure proper risk management and closely watch the market's latest development.