IMF Staff Country Reports

People’s Republic of China—Hong Kong Special Administrative Region: Financial System Stability Assessment-Press Release and Statement by the Executive Director for the People’s Republic of China—Hong Kong Special Administrative Region

Publication Date:

June 8, 2021

Electronic Access:

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Summary:

The main macro-financial risks relate to extensive linkages to Mainland China, stretched real estate valuations, and exposure to shifts in global market and domestic risk sentiment, compounded by escalating U.S.-China tensions. Stress tests show that the financial system is resilient to severe macro-financial shocks, but there are pockets of vulnerabilities in foreign bank branches, investment funds, households, and nonfinancial corporates. Hong Kong SAR’s financial sector is also exposed to physical and transition risks from climate change.

Series:

Country Report No. 2021/102

Subject:

Commercial banks Financial institutions Financial regulation and supervision Financial Sector Assessment Program Financial sector policy and analysis Financial sector stability International organization Monetary policy Stress testing

Frequency:

regular