Hong Kong government ‘prepared’ for more volatility after Iran attacks: Paul Chan
Finance chief says authorities will manage financial risks and impacts on trade, while noting that capital may flow to ‘safe haven’ of Hong Kong
The Hong Kong government is prepared for greater global market volatility and risks, higher trade costs, and fluctuating commodity prices stemming from the joint US-Israel attack on Iran, according to the city’s finance chief
Shortly after Iranian state media confirmed the death of Supreme leader Ayatollah Ali Khamenei in the air strikes, Financial Secretary Paul Chan Mo-po said on Sunday that the conflict created “significant global uncertainty” in the world economy.
“I expect increased volatility in financial markets, with faster and less predictable capital flows. Capital may come [from different places] to Hong Kong to seek a safe haven,” he said in a televised interview.
“The government is prepared for that and will manage financial risks with caution.”
Chan said that the conflict was likely to have a short-term impact on oil and gold prices, and may also affect international trade, transport costs, and logistics timelines.
Hong Kong did not have many direct trade and investment ties with Iran, but the government would continue to manage risks as the situation evolved, he added.
Despite being hit by United States sanctions, Iran remains one of the world’s major oil producers, exporting about 1.9 million barrels per day, according to the International Energy Agency.