Major initial public offerings on the stock market will prompt capital inflows and protect the Hong Kong dollar peg, Eddie Yue, chief executive of Hong Kong’s de facto central bank, said last week.

The aggregate balance of the banking system, a gauge of interbank liquidity, stood at HK$457 billion (US$59 billion) in mid March, which means there is enough ammunition to defend the HKD/USD currency peg, Yue said in a media briefing.

Hong Kong’s initial public offering market is expected to raise