Core Viewpoint - The Hong Kong Monetary Authority (HKMA) has demonstrated the orderly operation of the linked exchange rate system amid changing market liquidity and persistent interest rate differentials between Hong Kong and the U.S. [1][2] Group 1: Market Dynamics - The HKMA President noted that the Hong Kong dollar (HKD) has seen a significant inflow of funds, with the banking system's HKD surplus rising from approximately HKD 45 billion to over HKD 170 billion, indicating a very ample liquidity situation [1] - The demand for HKD has changed, with a strong demand observed from May to June, but factors such as the peak of dividend payouts and the return of funds from non-local companies have reduced this demand [1] Group 2: Interest Rate and Exchange Rate - The interest rate differential between Hong Kong and the U.S. remains wide, making arbitrage trading profitable and keeping the HKD close to the 7.85 level [2] - The HKMA emphasizes that the primary policy goal of the linked exchange rate system is to maintain the stability of the HKD, rather than targeting interest rates [2]
香港金管局总裁余伟文：“弱方兑换保证”或再度被触发
Xin Hua Cai Jing·2025-07-11 14:03