Using the capital market approach and the equity price data of 14 listed Chinese banks, this empirical study finds that there is a positive relationship between bank size and foreign exchange exposure. This relationship may reflect the larger foreign exchange operations and trading positions of...

Using the capital market approach and the equity price data of 14 listed Chinese banks, this empirical study finds that there is a positive relationship between bank size and foreign exchange exposure. This relationship may reflect the larger foreign exchange operations and trading positions of...

The Hong Kong banking sector is embracing Fintech vigorously. The survey results indicate that on the whole incumbent banks considering Fintech as a complement and enabling technology, which facilitates them to improve efficiency and to meet the demand for under-served customers, out-number...

This study develops a framework for stress testing the credit exposures of Hong Kong's retail banks to macroeconomic shocks. Macro stress testing is performed with the framework to assess the vulnerability of banks' overall loan portfolios and mortgage exposures. A variety of shocks, similar to...

The sharp fall of property prices after the Asian financial crisis has led many residential mortgage holders in Hong Kong to experience negative equity. Among other factors, this study looks at the impact of negative equity on the probability of default on mortgage loans, which is an important...

Taking large open positions in the Hang Seng Index (HSI) futures formed part of the strategy of speculators in the 1998 episode of "speculative attacks" on the Hong Kong dollar and stock markets. The open interest has risen in the past couple of years, at one point to a record high level in the...