Hong Kong's finance chief has announced that the government will closely monitor the global economic and financial impact of Britain's exit (Brexit) from the European Union (EU).

"It was a big surprise when I learned the outcome of the vote. The government will keep a close eye on the development,” Hong Kong’s Financial Secretary John Tsang said on his blog over the weekend.

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Tsang has expressed concern that doubts about the outcome of Brexit will spread unsettled global trade and finance, and affect Hong Kong’s economy. He added that the aftermath of Brexit will place both Britain and the EU in a lengthy negotiation regarding the arrangement. The arrangement with the two parties may bring long term uncertainty for both economies, as well as international markets such as Hong Kong.

However, Chief Executive Leung Chun-ying has a different opinion about the impact of Brexit. He has expressed his confidence in Hong Kong’s capacity to overcome any financial crisis that Brexit may bring and that the city could seize advantages that will spring from the recent situation.

“I have every faith and confidence in Hong Kong business people and investors in turning challenges into new opportunities," Leung said. "I am happy to say we are pretty well prepared for this outcome. The financial institutions in Hong Kong have passed their stress test; we have enough liquidity in the system." 

In addition, Tsang announced the city has enough foreign exchange liquidity to deal with a series of outcomes from the recent Brexit from the European Union.

Moreover, Hong Kong Monetary Authority CEO Norman Chan also asked the banks to sustain sufficient cash conditions with them. He added that the interest rates also have remained stable, even as Hong Kong’s stock market revolved on the unexpected outcome of Brexit.

TagsHong Kong, brexit, U.K. referendum, European Union, Britain, finance, Labour Party