Investors should be cautious in face of rising global volatility.
Secretary for Financial Services & the Treasury James Lau made the statement after attending a radio programme today.
Noting the solid economic recovery in many places, Mr Lau said investors should pay attention to geopolitical risk.
He cited North Korean missile tests and the US decision to recognise Jerusalem as Israel's capital.
"That's already scooped a lot of negative reactions from not only the Islamic world, but also from the Western allies of the United States. So, I think on that one, we would need to be very wary. Jerusalem of course that's a new issue. Not that the Middle East conflict is new, but I mean that particular incident is new.
"North Korea has been around for some time - you have the sanction(s), the US sanction(s), and you also have all the missile-testing.
"The markets did not seem to have allowed for that sort of risk. So that is one area I think we should pay attention to."
Mr Lau said Hong Kong has a stringent regulatory mechanism for monitoring listed companies and securities companies, adding this mechanism will not be affected by a corruption investigation into a listed company.
Independent Commission Against Corruption officers arrested three senior executives of the listed company on December 7.
