Hong Kong FPS (Faster Payment System) down on 22 July 2022

The FPS system in Hong Kong was down yesterday 22 July 2022 and transfers made through online banking system that showed “successful transfer” actually did not get effected.

It is very worrying that confirmations of success should be returned when the transaction was not actually made.

With China’s banking crisis happening at the same time whereby depositors are unable to withdraw cash from their banks for the last few months, FPS going down further erodes our collective confidence in the banking system. There has been speculation that the FPS was purposefully turned off whilst China could install a special monitoring system so that the Communist Party of China can monitor directly all transactions taking place within Hong Kong.

These Chinese banking system is going into meltdown with a monumentally large exodus of foreign exchange; in the last few weeks Hong Kong’s administration just gave away 10% of its foreign reserve to China since Hong Kong has more foreign reserve than the whole of China. In addition, the property sector is facing its biggest shake down ever, with the largest player Evergrande going bankrupt. China’s version of the US’s subprime crisis is playing out as we speak. The Communist Party has been trying to keep a lid on it by forbidding people from withdrawing money and taking away people’s deposits and pensions; tanks were even deployed in Henan 3 days ago to stop people taking deposits. Please see this link for more details:- https://www.ndtv.com/world-news/video-shows-tanks-protecting-crisis-hit-banks-in-china-internet-says-history-repeats-itself-3175812

With all this happening, it begs the question as to how long Hong Kong keep the US dollar peg.