HONG KONG, Jan. 25 (Xinhua) -- China's Hong Kong Special Administrative Region government on Friday hailed an International Monetary Fund (IMF) report which commended Hong Kong for maintaining robust financial regulation and supervision.
The IMF's Staff Report reaffirmed its long-standing support for the Linked Exchange Rate System, and said that it should remain as an anchor of economic and financial stability for Hong Kong.
Noting initial signs of softening in the property market, the IMF considers it appropriate for Hong Kong to maintain its three-pronged approach of increasing housing supply and retaining tight macroprudential measures and demand side measures to safeguard financial stability.
It also applauded Hong Kong for its continued efforts to maintain competitiveness and expand its role as a leading financial center.
In response to the report, Financial Secretary Paul Chan welcomed the IMF's positive assessment and recognition of Hong Kong's sound policies.
He said with ample buffers, strong economic fundamentals and a robust regulatory and supervisory framework, Hong Kong is well placed to navigate through the challenges ahead.
"As an international financial center and the pivotal gateway to the Chinese mainland, we will continue to sharpen our competitive edge and reap the opportunities from further regional economic integration, especially in the context of the Guangdong-Hong Kong-Macao Greater Bay Area development."
Norman Chan, chief executive of the Hong Kong Monetary Authority, also welcomed the IMF's continued support for the Linked Exchange Rate System.
Hong Kong will continue to push forward initiatives, as highlighted by the IMF, to develop Hong Kong as an international financial center, such as development of the bond market, fintech and green finance, Chan said.
