Hong Kong Banks Unaffected By US Subprime Crisis
The US subprime mortgage problem has not brought any systematic impact to Hong
Kong's banking sector, Financial Secretary John Tsang has said. However, Tsang has urged shareholders to act according to their ability, and
be aware of fluctuating market conditions. The Hang Seng Index closed at 20,672 points on Thursday, down 703 points or
3.29% on the previous day's close. Mr Tsang told reporters that the plunge was
mainly due to a number of external factors, including global market conditions
and the US subprime mortgage problem. Tsang revealed that local market transactions were in order, the interbank market
operated smoothly and in an orderly fashion, and the Hong Kong dollar exchange rate remained
stable. He added that the city's financial system is capable of handling market
volatility. Tsang went on to add that the Government and financial institutions are monitoring the markets.
The Monetary Authority has reviewed information submitted by local banks, and
found that the US subprime mortgage problem has not had any systematic impact
on the sector. A comprehensive report in our Intelligence Report series examining offshore banking jurisdictions is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report3.asp
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