MACAO, Oct. 12 (Xinhua) -- The Macao Special Administrative Region (SAR) government is closely monitoring developments in global financial markets in order to uphold the stability of Macao's economy and financial system, the SAR monetary watchdog said here on Friday.
Monetary Authority of Macao said that while urging investors to pay close attention to market developments, remain vigilant and control risks, the government has strong fiscal strength, good external financial position, a reliable linked exchange rate system and a sound financial system.
The government and the local financial system have sufficient capacity to cope with fluctuations in the financial markets, it stressed.
Market worries about trade tensions between the United States and other countries, and rising yields of U.S. treasury bonds affected investor sentiment, causing the three major indexes of the U.S. stock market to fall significantly.
Monetary Authority of Macao said the SAR is a small open economy, unavoidably affected by external factors. Nevertheless, persistent economic growth, abundant foreign exchange reserves, prudent fiscal management and credible linked exchange rate system reflect Macao's strong economic fundamentals and ability to withstand external risks.
The latest indicators of the banking system have exhibited its strengths in capital adequacy, asset quality, profitability and liquidity. Meanwhile, the fiscal reserve of Macao has a balanced allocation of diversified assets, which helps to diversify investment risks.
It reiterated that the government will continue to closely monitor global economic and financial market situations as well as the stability of Macao monetary and financial markets through established mechanisms.
