HONG KONG - The International Monetary Fund on Thursday reaffirmed Hong Kong's position as an international financial center and recognized that Hong Kong's financial system remains resilient.

Such resilience is backed by robust institutional frameworks, ample policy buffers, and the smooth functioning of the Linked Exchange Rate System, the IMF said in a staff report published on Thursday to elaborate on a former assessment, which was published on Jan 10 by the IMF Staff Mission.

The Linked Exchange Rate System remains an appropriate arrangement for Hong Kong given its highly open economy with a large and globally integrated financial services industry, and recognizes that the Hong Kong Special Administrative Region government's direction and path of gradual medium-term fiscal consolidation are appropriate, according to the report.

READ MORE: IMF commends Hong Kong's fiscal policy

The IMF also commends the HKSAR government for prioritizing policies to support economic recovery, manage financial stability risks, and address structural challenges.