【明報專訊】As Hong Kong's economy reels from the blow of the fifth wave of the pandemic, HSBC has announced its latest earnings release. The first quarter pre-tax profit of its Hong Kong business tumbled nearly 46% year-on-year, which was largely due to the pandemic. Although the pandemic in Hong Kong has somewhat come under control at the moment and the economy is beginning to return to normal, the city is facing headwinds in the external arena. The Russia-Ukraine war, geopolitical struggles, the pandemic situation on the mainland and interest rate hikes by the US have all cast a shadow over Hong Kong's economic recovery. As inflation climbs continuously in the US, it is expected that the Fed will raise interest rates aggressively in May and June, and the market estimates that the total rate hike may exceed 1%. In view of a possible major shake-up in the global financial markets in the coming two months, international capital flows must be followed closely. The Chief Executive (CE) of the Hong Kong Monetary Authority (HKMA) has stated that the global financial markets are facing a "rare situation" with "equities, bonds and foreign exchange valuation all falling at the same time" — a tough "triple-whammy" situation that would be difficult for the city's Exchange Fund to escape from as well. His remarks are meant not only to warn about potential investment losses, but also to remind retail investors to watch out for the risks.