Moody鈥檚 HK downgrade fuels controversy
China鈥檚 Hong Kong Special Administrative Region government said yesterday it strongly disagrees with Moody鈥檚 latest decision to downgrade Hong Kong鈥檚 credit rating.
Moody鈥檚 Investors Service announced on Monday it is downgrading Hong Kong鈥檚 long-term issuer rating to 鈥淎a3鈥 from 鈥淎a2.鈥 The institution, however, changed Hong Kong鈥檚 credit outlook to 鈥渟table鈥 from 鈥渘egative.鈥
鈥淲e strongly disagree with Moody鈥檚 assessment of Hong Kong鈥檚 current situation and are deeply disappointed by Moody鈥檚 decision to downgrade Hong Kong鈥檚 credit rating,鈥 a HKSAR government spokesman said.
Since Hong Kong鈥檚 return to the motherland, the HKSAR government has implemented 鈥渙ne country, two systems,鈥 鈥淗ong Kong people administering Hong Kong鈥 and a high degree of autonomy in strict accordance with the Basic Law, the spokesman said.
鈥淲e do not think there is sufficient ground for Moody鈥檚 to raise any query on them,鈥 he said.
鈥淎lthough Hong Kong has faced the most severe social unrest over the past seven months since its return to the motherland, the HKSAR government, with the staunch support of the central government, has firmly upheld the 鈥榦ne country, two systems鈥 principle and handled the situation in accordance with the law to curb violence on its own to restore social order as soon as possible.鈥
The spokesman added that Moody鈥檚 rating is not in keeping with Hong Kong鈥檚 sound credit fundamentals.
鈥淥ur fiscal performance and external positions have long been amongst those of the top-rated economies and serve as a strong buffer for Hong Kong to withstand shocks,鈥 he said.
Confidence in the Linked Exchange Rate System has remained strong, as acknowledged by Moody鈥檚, he said, and banks are well cushioned given their strong capital base, sound liquidity and healthy asset quality.
Furthermore, he added that capital markets have performed well over the past year, as initial public offerings and bond-financing activities have continued to thrive, and turnover for Stock Connect and Bond Connect has surged.
鈥淭he persistent social unrest reflects deep-seated problems in Hong Kong society about which the government will soon conduct an independent review. We are also proactively engaging people from different backgrounds, political stances and age groups through dialogue and listening to their views humbly to find a way out for society.鈥
He pointed out that Hong Kong faces many social issues, including wealth inequality, an aging population and high home prices.
Despite these issues, he said 鈥淗ong Kong鈥檚 institutional strengths and its core competitiveness as an international financial center, trade hub as well as one of the best places in the world to do business remain well in place.鈥
The spokesman elaborated on how the HKSAR government has proactively managed social issues over the years, stressing that 鈥渢he HKSAR government will continue to humbly listen to members of the public and strengthen communications with the citizens, overcome these challenges and help relaunch Hong Kong.鈥
- About Us
- |
- Terms of Use
- |
-
RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔$粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.