diversity of market participants

The stability of the linked exchange rate system essentially depends on the diversity of market participants and the balance of capital flows. When the market relies solely on a single pool of capital, the HKMA’s mechanism for strong- and weak-side convertibility is more likely to be triggered frequently, undermining the stability and credibility of the system. This creates a long-term hidden risk for the linked exchange rate system, leading to liquidity mismatches and the concentration of risks. ดูหนัง2025