HKMA in funding boost

HONG KONG: The Hong Kong Monetary Authority (HKMA) is adding HK$4 billion to the banking system in order to ease liquidity pressures faced by potentially vulnerable financial institutions in the city.

Additional three-month exchange fund bills will be offered in two tenders of HK$2 billion each, later this month and early in November, HKMA said in a statement yesterday.

"Although HK$4 billion is a relatively small amount, the fund injection gives very timely support to worried lenders in the city," said Dick Lee, an analyst at Phillip Securities. "By boosting funds available for financial companies, the government is demonstrating its commitment to maintaining the stability of Hong Kong's banking system."