Hong Kong Chief Executive John Lee has reaffirmed that the city will maintain its currency peg to the US dollar, describing it as 'one of the fundamental success factors' for Hong Kong's financial system. The peg, in place since 1983, remains despite recent currency volatility and calls to shift to a Chinese yuan peg. Over the past two months, the Hong Kong dollar has swung between the strong and weak ends of its 7.75 to 7.85 per US dollar trading band. The Hong Kong Monetary Authority (HKMA) intervened multiple times in May, injecting HK$129.4 billion to purchase US$16.7 billion in order to stabilize the currency. These actions were prompted by significant capital inflows, particularly from mainland China, and record low borrowing costs in Hong Kong. The volatility has led to a record-high interest rate gap between Hong Kong and the United States. HKMA chief Eddie Yue noted that lower interest rates may benefit the local economy, including the property market, where home prices edged up in April. The government also issued 30-year bonds for the first time last month to take advantage of the low funding environment. Lee also addressed recent controversy involving CK Hutchison's Panama ports and used a 'family' metaphor to urge firms to consider national interests in commercial decisions. He further stated that Hong Kong will continue to strengthen its position as a global offshore yuan hub, with about 80% of offshore yuan payments processed through the city, and will focus on diversifying yuan-denominated financial products.