HKMA SAYS RISK RELATED TO HONG KONG BANKS' EXPOSURE TO CHINA IS CONTROLLABLE

The risk related to the exposure of Hong Kong banks to mainland China is controllable, the chief executive of the Hong Kong Monetary Authority has said.

The growing exposure of Hong Kong banks to the mainland in recent years has grabbed headlines about their ability to handle credit risks against the backdrop of a slowing Chinese economy.

Rating agencies and supranational bodies such as the International Monetary Fund have openly voiced concern.

Long praised by investors for their sound risk management, Hong Kong's mid-sized banks are increasingly becoming more exposed to any blowup in default risk as they hunt for new opportunities in the mainland amid sluggish growth at home.