HKMA out with some reassurance after it defended the USD/HKD peg earlier
- Says Hong Kong has the ability to cope with market volatility
- Able to cope with challenge of capital outflows
The HKMA intervened in the market a couple of hours ago in order to defend the USD/HKD peg for the first time since May. USD/HKD has been trading near the top of the band for months now.
Hong Kong is being hit with a double whammy as stocks are also near 1-year lows as tech shares continue to fall since yesterday and Chinese stocks aren't really providing any relief either. The Hang Seng index is down 1.5% currently at the break.
