2025 full of uncertainties and challenges: Eddie Yue
The head of the Hong Kong Monetary Authority has predicted that 2025 will be a year marked by uncertainties and many changes, while the SAR will be affected by policies set to be introduced by incoming US President Donald Trump.
Authority chief executive Eddie Yue also admitted on Sunday (Jan. 12) the city cannot fully shield itself from unforeseen factors in global financial markets.
"When we look at the global monetary policy from a couple of years ago, we experienced similar external shocks - our interest rates went up and down together," he told a radio program.
"But now there's division in international monetary policy. The United States may have slower rate cuts, but other places will increase interest rates. It could lead to faster and more volatile global capital flows, with cracks emerging that we didn't see over the past few years."
Looking back at the past year, Yue said Hong Kong's overall financial system had developed "quite well". The Hong Kong dollar remained stable, while the linked exchange rate system operated in an orderly manner, he noted.
Hong Kong's de-facto central banker also said global investors had changed their impression of the SAR over the past year, referring to his observations at the Global Financial Leaders' Investment Summit last November.
"Whether they were being interviewed on stage or chatting with us on the side, they had full confidence in Hong Kong and saw that we have many opportunities in the future," he said.
"No one asked me how the Article 23 legislation affected Hong Kong or how the national security law affected Hong Kong. Those were no longer topics of interest. Investors were more concerned about the development of the mainland."
(Source: RTHK)
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