In a statement, Moody's said the downgrade was also the result of Hong Kong's "economic proximity to and legal and regulatory distance from China." Financial secretary for Hong Kong Paul Chan deems the dismissed the downgrade as a decision not based in truth.
"Hong Kong's financial markets and its banking system have been functioning normally in the past few months," Chan said. "The Linked Exchange Rate System has been operating smoothly. Banks remain well capitalized with ample liquidity."
—Christie Citranglo, editorial associate