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Financials

HKMA expects market volatility to persist in near term after U.S. election

HONG KONG, Nov 9 (Reuters) - The Hong Kong Monetary Authority (HKMA) said on Wednesday that market volatility is expected to persist in the near term until there is more clarity about the policy stance of the new U.S. Administration.

The U.S. residential election suggests that Donald Trump is on course for a win, triggering significant volatility in financial markets, Norman Chan, the chief executive of the HKMA said in an email response to media.

Shortly after Chan’s email, Democrat Hillary Clinton called Trump to concede a stunning upset win for Trump, U.S. TV networks reported.

Chan said the Hong Kong dollar and offshore yuan have remained stable in both exchange rate and interest rate markets, while the local interbank money markets continue to operate smoothly with no notable signs of tightening.

“The Hong Kong banking system is highly liquid and is well prepared for such global market volatilities. As usual, the HKMA stands ready to provide liquidity support to the banking system in case of need,” Chan said.

The HKMA also urged the public to remain vigilant and manage their risks prudently. (Reporting by Michelle Chen; Editing by Shri Navaratnam)

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