Hong Kong’s financial sector grows despite NSL: Eddie Yue

Hong Kong’s financial industry has continued to grow after the 2020 enactment of the national security law, despite predictions of a flight of capital from the city, according to de-facto central bank chief Eddie Yue.

The number of private equity and hedge fund managers as well as family offices operating in the city has increased 24 percent in the last three years, the Hong Kong Monetary Authority chief executive said at an event on Saturday marking the fourth-anniversary of the legislation. A transcript of the speech was posted on the HKMA’s website.

Yue took over the top job at HKMA in October 2019, when the city was engulfed in political unrest and rumors were rife about Hong Kong’s financial stability. Some predicted the collapse of the local dollar’s peg to the US dollar, while others speculated that capital flight would force the city to devalue its currency.

“Some even incited the public to withdraw their savings from targeted banks,” Yue said on Saturday. Total deposits in the city’s banking system have risen 21 percent over the past five years, he said, “We are seeing money flowing in, not flowing out.”