Hong Kong SAR Government responds to Moody’s announcement to adjust Hong Kong’s credit rating outlook.

　　According to the press release of the Hong Kong SAR Government, the rating agency Moody’s adjusted the outlook of Hong Kong’s credit rating from "stable" to "negative" on December 6, and confirmed that Hong Kong’s long-term credit rating was "Aa3", the SAR Government made the following response:

　　"Based on Hong Kong’s solid credit strength, fiscal buffer space and huge foreign exchange reserves, Hong Kong has sufficient buffer and resistance to external environmental shocks. Moody’s confirmed that Hong Kong’s long-term credit rating is ‘ Aa3’ Level, the fourth highest rating. However, we don’t agree that Moody’s downgraded Hong Kong’s credit rating outlook to ‘ on the grounds that Hong Kong’s credit status is closely linked with that of the Mainland and that the development of the Mainland may bring potential negative impacts. Negative ’ The decision. The deepening and expanding economic and financial ties between Hong Kong and the Mainland should not be a factor in downgrading the rating. On the contrary, these links are the advantages of Hong Kong’s long-term development. "

　　"As pointed out by the Ministry of Finance, the risk of downward adjustment of the mainland real estate market is controllable, and local government debts are also effectively controlled. The mainland is moving towards high-quality development, and the country is fully capable of continuously deepening reforms and coping with risks and challenges. Looking ahead, China’s economy has great development resilience and potential, and the long-term positive fundamentals have not changed. "

　　"In fact, the mainland has always been an important driving force for global economic growth. This year, the mainland economy will steadily reach the target of 5% growth, surpassing many other economies, and according to the forecast of the International Monetary Fund, the mainland will contribute more than 30% to global growth this year. The Mainland’s continuous promotion of high-level two-way opening to the outside world, coupled with vigorous promotion of green transformation, digital economy and innovation and technology development, will continue to bring huge business and investment opportunities to Hong Kong. Our deepening and expanding economic and financial ties with the Mainland will continue to be a positive driving force for Hong Kong’s long-term economic development and bring benefits to local and international enterprises doing business in Hong Kong. "

　　"Moody’s also made unfair accusations on the high degree of autonomy of the SAR, the government and judiciary, the implementation of the Hong Kong National Security Law and the improvement of the electoral system. We must point out that the central government is determined to adhere to ‘ One country, two systems ’ And Hong Kong’s core advantage as an international financial and trade center will continue to be maintained. These advantages include continuing to implement the common law system and enforcing the rule of law; Having a judicial body that exercises judicial power independently; Free flow of funds, goods, information and talents; Simple and low tax rate tax system; And a friendly business environment that is highly in line with international best practices. "

　　"Contrary to Moody’s comments, the implementation of the Hong Kong National Security Law put an end to the chaos and serious violence that occurred between June 2019 and early 2020, restored the stability of Hong Kong and enhanced the confidence of the outside world in Hong Kong, enabling Hong Kong to quickly resume normal operation and return to the right track of development. The number of overseas enterprises in Hong Kong has remained at a stable level of about 9,000. In November this year, the total deposits in Hong Kong’s banking system reached about US$ 2 trillion, an increase of about 10% over that before the implementation of the Hong Kong National Security Law. At the same time, Hong Kong is a green and sustainable financial hub in Asia. Last year, the total amount of green and sustainable debt issued exceeded US$ 80 billion, an increase of more than 40% compared with 2021. At the end of September this year, Hong Kong managed more than US$ 210 billion in private equity capital, ranking second in Asia, second only to the mainland. "

　　"After improving the electoral system in Hong Kong, ‘ Patriots govern Hong Kong ’ The implementation of the principle has ensured that the governance of the SAR Government is in the hands of patriots and ensured the stability and development of Hong Kong. "

　　"Hong Kong’s financial market and banking system have strong resilience. Hong Kong’s linked exchange rate has been operating smoothly, banks have maintained sufficient capital and liquidity management is sound. The overall asset quality of banks is maintained at a good level according to international standards. "

　　"The assessment report released by the International Monetary Fund in May this year reaffirmed Hong Kong’s position as a major international financial center. Hong Kong has a sound institutional framework, abundant capital and liquidity buffers, a high level of regulation of the financial industry, and a smooth operation of the linked exchange rate system. The assessment report also pointed out that the HKSAR Government is actively consolidating international finance centre’s position and enhancing its economic development momentum and competitiveness. "

　　"After many tests in the past, Hong Kong’s advantages have been maintained and will continue to be so in the future."