The local bourse lost 3,021 points, or 13.2 percent, to close at 19,828.
The percentage drop was the worst among major Asian markets on Monday.
Speaking to the press after trading ended, Chan said the plunge reflected grim global investor sentiment.
But he pointed out that officials didn’t see any “systemic market abnormalities” in the SAR, saying the local financial system is very sound and the Hong Kong dollar remains strong.
“Basically the market has been functioning orderly. There are substantial selling as well as buying interests. The spread between the two has been very tight, indicating that the buying power remains very strong,” Chan said.
The minister noted that for some time going forward, it’s unavoidable that the markets would continue to fluctuate, and investors should exercise caution and assess their risks.
He said reciprocal tariffs from different counties against the United States and interest rate movements by central banks could add to market volatility.
“We do not think the current volatility in the market warrants any drastic measures to be taken,” he said.
Chan added that officials will keep a close eye on the markets to guard against financial risks.
