The diversified export destinations of mainland China and Hong Kong can reduce the impact of trade friction, Hong Kong Monetary Authority chief executive Eddie Yue Wai-man said.
While the trade tensions will affect Hong Kong’s outbound shipments and economy, Yue believes the diversification of export destinations will help mitigate the impact for the mainland and Hong Kong.
Yue added that a series of stimuli rolled out by Beijing will benefit Hong Kong.
The subsequent impact will depend on how the tariffs are implemented and whether there will be countermeasures, Yue noted.
He added that they will pay attention to the impact of trade friction and the anti-immigration policy of the United States on local inflation and how it affects the interest rate policy of the Federal Reserve.
As Hong Kong is expected to be in a higher interest rate environment, Yue again reminds residents to carefully consider the interest rate risk in borrowing and mortgage repayment.
STAFF REPORTER
