China hyperlinks, property costs and market sentiment have been underlined by the Worldwide Financial Fund as the highest dangers for Hong Kong’s monetary system.
The IMF reviewed the state of Hong Kong’s monetary system within the newest report based mostly on its ‘Monetary Sector Evaluation Program’ (FASP).
«The FSAP recognized the intensive linkages to Mainland China, stretched actual property valuations, and publicity to shifts in world market and home danger sentiment, compounded by escalating U.S.‑China tensions, as the principle macro monetary dangers,» the report mentioned.
The final FASP for Hong Kong was carried out in 2014.
General, the IMF’s evaluation concluded that Hong Kong’s banking system remained broadly resilient to extreme macro monetary shocks.
Nonetheless, it famous pockets of vulnerability in overseas financial institution branches, funding funds, households, and non-financial corporates.
The report additionally famous that administrators of IMF’s govt board supported offering «de jure operational independence to the Hong Kong Financial Authority».
«Administrators usually underscored the significance of continuous to strengthen regulation and preserving the rule of legislation to take care of a stable basis for competitiveness as a global monetary middle,» it mentioned.
The FASP was established in 1999 and it’s obligatory for the 47 jurisdictions with systemically necessary monetary sectors.