Government replies on what assessment they have made of the exposure of UK investors to Chinese government bonds and stocks following the fall of the Hang Seng Index; and what holdings they currently have in the (1) Hong Kong dollar, and (2) Renminbi; and what assessment they have made of the impact on UK pension funds of the fall of the Hang Seng Index
Baroness Penn, Treasury, has provided the following answer to your written parliamentary question (HL3136):
Question by Lord Alton of Liverpool:
To ask His Majesty’s Government what assessment they have made of the exposure of UK investors to Chinese government bonds and stocks following the fall of the Hang Seng Index; and what holdings they currently have in the (1) Hong Kong dollar, and (2) Renminbi. (HL3136)
Tabled on: 02 November 2022
Answer:
Baroness Penn:
HM Treasury works closely with the UK’s independent financial regulators – including the Bank of England and Financial Conduct Authority to monitor risks to the UK financial system.
The Government does not comment on specific financial market movements. However, the results of the Bank of England’s 2021 stress test concluded that the UK banking sector is resilient to a sharp contraction in both China and Hong Kong’s economic activity.
Figures from the Office for National Statistics estimate that UK investors owned around £409bn of investment in China and Hong Kong at the end of 2021- or around 3% of the UK’s total investment held overseas. This compares to £4.3tn of investment held in the USA and £4.6tn in the EU.
Date and time of answer: 16 Nov 2022 at 17:06.
Baroness Stedman-Scott, the Department for Work and Pensions, has provided the following answer to your written parliamentary question (HL3135):
Question by Lod Alton of Liverpool :
To ask His Majesty’s Government what assessment they have made of the impact on UK pension funds of the fall of the Hang Seng Index. (HL3135)
Tabled on: 02 November 2022
Answer:
Baroness Stedman-Scott:
UK pension schemes investment in Asian markets, and therefore exposure to the fall of the Hang Seng index, is low. Overall, our UK Pension schemes operate over very long timescales and have balanced and diversified investment strategies. They are therefore well placed to navigate any periods of volatility in global markets.
Date and time of answer: 16 Nov 2022 at 14:13.
