Even though there may be some fluctuations in Hong Kong’s financial market, we believe that the HKMA is fully capable of handling these situations satisfactorily. If necessary, the People’s Bank of China will, at the request of the HKMA and in accordance with the Basic Law and market practices, offer support to the HKMA.
After all, the nature and features of banking union must be strictly connected with what justifies its existence. First, a single supervisory mechanism is necessary because of the increasing interconnectedness between financial institutions and markets across the euro area over the past decade, be it through internationally active banking groups, bilateral trading exposures, or presence in the same market segments.