The global economy will not improve after the move by the U.S. Federal Reserve to stimulate the American economy, a senior official said here on Friday.

KC Chan, secretary for Financial Services & the Treasury of Hong Kong Special Administrative Region (HKSAR) government, cautioned that the U.S. government's third round of quantitative easing, or QE3, will increase stock market risks, and the uncertainties surrounding it will bring different risks to different markets.

He said the HKSAR government will closely monitor QE3's impact on Hong Kong's economy and risks to the financial market, adding corresponding measures will be taken to tackle the issue.

Meanwhile, Monetary Authority Chief Executive Norman Chan expects QE3 will not have significant impact on Hong Kong's interbank offer rate as the rate has been very low.

He cautioned people to be prepared to tackle capital volatility and the increased risk of overheating in asset prices in Hong Kong.

He said the authority will introduce further cooling measures when appropriate.