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Wednesday, June 12, 2019, 21:48
HKMA says banking system sound, Fitch affirms AA+ ratings
By China Daily
Wednesday, June 12, 2019, 21:48 By China Daily

This photo dated June 29, 2015 shows a view of the Victoria Harbor with the International Finance Center and other high-rise buildings in Hong Kong. (PHOTO / IC)

HONG KONG – The Hong Kong Monetary Authority said on Wednesday that the local banking system is safe and sound as Fitch Ratings affirmed the city’s ratings at AA+.

Fitch said the city’s ratings are supported by its exceptionally strong public and external finances, high-income levels and a resilient and flexible economy

A spokesperson for the HKMA said local banks are well capitalized with high liquidity, adding that the asset quality is good and its operations are strong.

The US-based credit ratings agency on Tuesday affirmed Hong Kong's long-term foreign-currency issuer default rating at AA+ with a stable outlook. 

Fitch said the city’s ratings are supported by its exceptionally strong public and external finances, high-income levels and a resilient and flexible economy.

READ MORE: HK can expect to have a stable economy in 2019

The agency said it believes escalating China-US trade tensions are unlikely to undermine the SAR’s fundamental external balance sheet strength.

Fitch forecast a 1.6-percent increase in Hong Kong’s GDP this year -- lower than the official forecast of 2 to 3 percent growth.

ALSO READ: Hong Kong's economy expands 0.5% in first quarter

The Hong Kong dollar has risen by as much as 0.2 percent to its strongest level since December at 7.82 per US dollar due to higher interbank rates and increasing demand for cash by banks and corporates.

E-commerce giant Alibaba Group Holding’s planned initial public offering in Hong Kong also raised market expectations for tighter liquidity.

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