(Bloomberg) -- Hong Kong Financial Secretary Paul Chan defended the resilience of the city’s currency peg and said recent stock market volatility wasn’t worrying.

“If you bet against Hong Kong dollar, you are bound to lose,” Chan said in a speech at a summit in Hong Kong. “You can verify my advice with certain hedge fund managers in the US who have been wrong about Hong Kong dollar time and again.”

While Chan didn’t name anyone, Hayman Capital Management’s Kyle Bass has been repeatedly bearish on Hong Kong’s currency. His bet against the local dollar incurred big losses last year, according to a US Securities and Exchange Commission case. 

The Hong Kong dollar has been trading near the weak end of its band against the greenback for the past two months. To maintain the peg, the city’s de-facto central bank has shrunk interbank liquidity by 70% since May, a move aimed at pushing up local rates and slowing outflows.

Hong Kong Key Rate Surge to Ease Pressure on Local Currency

Chan also said swings in the local stock market are “no cause for alarm,” despite the recent volatility spurring “calls that the Hong Kong government should do something, for example about short selling.”

The Hang Seng Index tumbled to a 13-year low on Monday before climbing in its best two-day gain since March. The gauge was down 2.4% at 11:08 a.m. local time.

“Amid market volatility, we focus on whether the markets are functioning orderly and properly and whether there are systematic risks, irregularities and vulnerabilities that will threaten Hong Kong’s financial stability,” Chan said.

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