[sgbuffett]

Article below is from 1 month ago but situation has not improved. HIBOR rose from below 1% to 4+% and remains at. 3.55%.

This is a dampener for HK economic recovery and.its causing a slump in the property sector.

https://www.businesstimes.com.sg/interna...sh-squeeze

[sgbuffett]

This is a problem brewing is it persists there is a risk of HK-USD peg breaking. That will be ugly.

This remains an outlier event but several hedge funds have bet on it ...


https://www.reuters.com/markets/europe/w...022-11-03/

[sgbuffett]

The main factors happening at the same time

1. US side raising interest rates.
2. Net Capital outflows. Weak economy and markets plus geopolitics. Investors moving money out.
3. HK sizable reserves are falling as the govt use it to defend the peg.

All these can lead of disruptive events if not reversed.

https://www.reuters.com/markets/currenci...022-12-04/

[sgbuffett]

As HKMA buys HKD to defend the peg, liquidity falls and interbank rate rises.

Until the US fed starts it's pivot this stress remains.