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Hong Kong regulator says not seeing fund outflows over new security law

HONG KONG, Feb 4 (Reuters) - Hong Kong is not seeing fund outflows due to the uncertainty created by Beijing’s imposition of the national security law in the Asian financial hub, a top executive at the city’s banking sector regulator said on Thursday.

Arthur Yuen, deputy chief executive of the Hong Kong Monetary Authority (HKMA), also said that the regulator had not received any complaints from customers about “landscape becoming more complicated” because of the security law.

Total deposits in Hong Kong rose 5.4% in 2020 compared to the previous year, the regulator said.

Beijing’s imposition of the law on the city last year has raised fears it will erode autonomy and freedoms in the former British colony, which is the regional home for a large number of global financial companies.

Hong Kong authorities are scrutinizing the financial records of pro-democracy activists as they crack down on political opposition, some activists and a senior bank executive told Reuters last month.

Banks operating in Hong Kong, notably the city’s largest bank HSBC, have also come under fire from politicians in the United States and Britain for assisting police with investigations into local pro-democracy activists. (Reporting by Alun John; Writing by Sumeet Chatterjee; Editing by Kim Coghill)

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