People’s Republic of China—Hong Kong Special Administrative Region: Financial System Stability Assessment-Press Release and Statement by the Executive Director for the People’s Republic of China

People’s Republic of China—Hong Kong Special Administrative Region: Financial System Stability Assessment-Press Release and Statement by the Executive Director for the People’s Republic of China—Hong Kong Special Administrative Region

June 8, 2021

Preview Citation

Format: Chicago

People’s Republic of China—Hong Kong Special Administrative Region: Financial System Stability Assessment-Press Release and Statement by the Executive Director for the People’s Republic of China—Hong Kong Special Administrative Region, (USA: International Monetary Fund, 2021) accessed December 3, 2024

Summary

The main macro-financial risks relate to extensive linkages to Mainland China, stretched real estate valuations, and exposure to shifts in global market and domestic risk sentiment, compounded by escalating U.S.-China tensions. Stress tests show that the financial system is resilient to severe macro-financial shocks, but there are pockets of vulnerabilities in foreign bank branches, investment funds, households, and nonfinancial corporates. Hong Kong SAR’s financial sector is also exposed to physical and transition risks from climate change.

Subject: Commercial banks, Financial institutions, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, Financial sector stability, International organization, Monetary policy, Stress testing

Keywords: Asia and Pacific, Commercial banks, Financial Sector Assessment Program, Financial sector stability, Global, H. investment fund liquidity stress tests, Hong Kong SAR authorities, Hong Kong SAR economy, Liquidity risk monitoring, Market expectation, Property market development, Risk sentiment, Stress testing

Publication Details

Pages:

66
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2021/102
Stock No:

1HKGEA2021001
ISBN:

9781513573106
ISSN:

1934-7685

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