The anti-revision demonstrations have been prolonged, and the flow of Hong Kong dollar funds has also attracted market attention
The French Foreign Trade Bank issued a report describing “Hong Kong is in the midst of an eventful event". The rise in local risks triggered asset price adjustments, but according to its indicators of tracking capital flows, it did not trigger large-scale capital contributions.
According to the HKMA data, total Hong Kong dollar deposits fell by 111 billion yuan or 1.6% in August, the first recorded decline in the past three months. Earlier, Goldman Sachs calculated that the amount of funds flowing from Hong Kong to Singapore in the past three months ranged from $3 billion to $4 billion ($23.4 billion to $312 billion), but the total amount of Hong Kong dollar deposits in the local banking system was $878 billion. The magnitude is still relatively small.
According to the report of the French Foreign Trade Bank, Hong Kong’s financial industry is large enough to reach 8.5 times of gross domestic product (GDP), and the capital account is fully open, which has become a major international financial center. Monitoring the flow of funds in Hong Kong is also particularly important.
Hong Kong uncertainty has hindered the trend of stocks
The report found that Hong Kong’s uncertainty has affected asset prices. For example, property prices in September have further adjusted and Hong Kong stocks have also lacked upward momentum. However, the short-selling ratio and volatility index of the HSI are still relatively stable. It is believed that the incident has not triggered market risk. Change.
At the same time, although the banking system summary shows that the Hong Kong dollar liquidity is still stable, the pressure on the outflow of US dollar funds has increased, resulting in a significant reduction in foreign exchange reserves in August. The French Foreign Trade Bank believes that the decline is mainly due to the HKMA’s efforts to alleviate the problem by reducing offshore dollar deposits and transferring them back to local banks.
Foreign exchange reserve assets rose in September
The HKMA announced that the foreign exchange reserve assets in September were US$438.7 billion, an inc