Hong Kong has no plans to introduce foreign exchange controls and has a stable financial environment, the financial secretary said.
The introduction of a colonial-era emergency law in Hong Kong that bans the use of face masks during protests has prompted online rumors that the special administrative region would soon introduce capital controls, but Hong Kong's financial secretary has spoken out against such chatter, saying that the Hong Kong's banking system is sound and the financial market is functioning well.
«Let me make it clear again that Hong Kong will not implement foreign exchange controls. The Hong Kong dollar can be exchanged freely and funds can enter and exit freely,» Paul Chan Mo-po, Financial Secretary of the Special Administrative Region, said on Sunday in a blog post (in Chinese) on his official website.
He also reiterated Article 112 of Hong Kong's Basic Law, which guarantees the free convertibility of the Hong Kong dollar and the flow of funds and freedom of movement.
Stable Financial Environment
In the blog post, Chan noted Hong Kong's $430 billion in reserves and foreign exchange assets, equivalent to twice its currency base, as well as fiscal reserves exceeding HK$1.1 trillion ($140 billion), equivalent to the government's 23-month expenditure.
The anti-face mask law, introduced on Friday by Chief Executive Carrie Lam, further fuelled anti-government protests and violence over the long weekend, bringing large parts of the city to a standstill as the MTR subway network, including the Airport Express, was disrupted.
