Former HKMA Chief Yam Calls for Investment Stress Tests, Ming Pao Reports

Former Hong Kong Monetary Authority Chief Executive Joseph Yam said financial markets and the so- called real economy have decoupled and there is a risk of a bubble bursting, Hong Kong’s Ming Pao Daily reported today.

He urged governments, companies and individuals to conduct stress tests on their investments and assess whether they can cope with a decline in stock prices of between 30 and 40 percent and a 5 percentage point rise in interest rates, the Chinese- language report said.

To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net

To contact the editor responsible for this story: Aaron Sheldrick at asheldrick@bloomberg.net