(Reuters) – Hong Kong’s debt exposure to China Evergrande Group, a debt-laden developer, is “very minimal”, at 0.05% or HK$14 million ($1.79 billion) of bank assets, South China Morning Post reported Sunday, citing the finance minister.

According to Financial Secretary Paul Chan, it is minimal and will not pose any systemic risk. He also stated that he reached this conclusion following a review of local banks sector’s exposure.

Chan stated that Hong Kong’s stock exchange was subject to volatility because of a recent crackdown in some industries on the mainland, but that any setback would only be temporary.

Evergrande’s liabilities totaling $305 billion have sparked concern that its cash crunch might spread to China’s financial system. This worry has been eased by the Chinese central bank’s pledge this week, which is meant to protect homebuyers.

According to bondholders, Evergrande has not paid two of its bond interest payments for the past week. Its offshore debt totaling about $20 Billion trades at distressed levels.