HKD

Re: HKD

Postby winston » Sun Sep 23, 2018 9:11 am

Hongkongers may soon be able to open mainland China bank accounts remotely

Talks between officials now focused on sorting out differences in the two regulatory systems involved, and the flow of funds between accounts on either side

[quote]
Initially customers are likely to be able to move small amounts of cash, using e-wallets provided by such operators as Alipay or WeChat Pay.

“We may implement these projects in the Greater Bay Area first,” he said but did not give any timelines.

The Greater Bay area refers to the joint economic cluster of 11 cities in southern China, including Macau and Hong Kong.

It should be noted US$130 billion in capital has flowed into Hong Kong since 2008, and the outflow has been around 10 per cent of that value, so Hong Kong’s banking system is still very liquid.”
/quote]

Source: SCMP

https://www.scmp.com/business/banking-f ... k-accounts
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Re: HKD

Postby behappyalways » Sat Mar 09, 2019 5:00 pm

Hong Kong Steps In to Defend Peg for First Time Since August
https://www.bloomberg.com/news/articles ... emium-asia
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Re: HKD

Postby behappyalways » Sun Mar 17, 2019 10:15 am

What's Pulling at the Hong Kong Dollar's Peg: QuickTake
https://www.bloomberg.com/news/articles ... emium-asia
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Re: HKD

Postby winston » Wed Mar 20, 2019 8:42 am

Disconnect for HKD in stocks

Hong Kong's weak dollar is a victim of surging Chinese stocks and the cost of defending its currency is mounting as the local dollar remains stuck at the weak end of its trading band.

The rally in Chinese stocks has been bad news for the local dollar. Equity investors are selling the currency for the yuan and buying mainland shares through the stock trading connects, according to Ronald Man, a strategist at Bank of America Merrill Lynch.

That's keeping the Hong Kong dollar lower in the spot market, he said. The currency has been at the weak end of its trading band for much of this month.

The Monetary Authority bought HK$2.01 billion on Monday. It has spent HK$7.4 billion this month purchasing local dollars as low interest rates make the currency less attractive to hold compared with the higher-yielding greenback and yuan.

While the interventions help drain interbank liquidity, as measured by the aggregate balance, borrowing costs in the city remain low.

The Hong Kong dollar was at HK$7.85 per greenback as of 5.45 pm yesterday, while the one-month interbank rate on the currency was little changed at 1.5729 percent, the highest since January 8, compared with 2.48 percent for those in the US.

Analysts last week predicted the HKMA would need to spend another HK$50 billion at least before rates rose sharply.

Net northbound fund flows climbed to around 130 billion yuan this year as of Monday, with sentiment helped by Beijing's looser monetary policy and an easing of trade tensions with the US.

The market could be further supported by foreign inflows, as MSCI expands the weighting of mainland-listed shares in benchmark indexes tracked by global investors.

"Positioning and risks suggest the depreciation in the Hong Kong dollar is more supported by equity investors via the stock connect than before," Man said, adding that the currency will hover near HK$7.85 per greenback - the weak end of its trading range - in the "foreseeable future."

The yuan was little changed at 6.7132 to the US dollar as the Shanghai Composite Index slipped 0.2 percent after jumping 2.5 percent on Monday, its biggest gain in three weeks.

Source: BLOOMBERG

http://www.thestandard.com.hk/section-n ... 0320&sid=2
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Re: HKD

Postby winston » Mon May 06, 2019 9:17 pm

Can Hong Kong Retain Its USD Peg?

by Ariel Santos-Alborna

Summary

The HKD/USD peg is under pressure from mounting economic inefficiencies and a HIBOR/LIBOR spread of 80 bps.

The Hong Kong Monetary Authority has already spent 80% of its reserves defending the peg.

Speculating on the peg break risks 1% to gain 50%.

Importing nearly a decade of near-zero interest rates have stabilized the peg, but led to massive inefficiencies in the Hong Kong economy. For one, it has the most expensive real estate in the world.

If the bleeding does not stop, Hong Kong will run out of reserves to defend its peg in less than a year.

If this occurs, Hong Kong has two options:
1) Hike rates to prevent capital flight, thereby crashing its overleveraged banking and real estate sectors.
2) Unpeg from the USD, thereby crashing the value of the HKD.


Source: Seeking Alpha

https://seekingalpha.com/article/426039 ... in-usd-peg
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Re: HKD

Postby behappyalways » Sun May 19, 2019 7:14 pm

Hong Kong’s dollar weakens below low end of trading band as capital flight from China’s stocks gathers pace in escalating trade war
https://www.scmp.com/business/banking-f ... ading-band
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Re: HKD

Postby behappyalways » Wed May 22, 2019 4:38 pm

Kyle Bass Is 'Very Long Dollars' in Bet Against Hong Kong
https://www.msn.com/en-gb/finance/other ... vi-AABGQee
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Re: HKD

Postby behappyalways » Thu May 23, 2019 9:31 am

Kyle Bass Is Wrong on Hong Kong’s Peg, Too
https://www.washingtonpost.com/business ... b2dc9da2ea


behappyalways wrote:Kyle Bass Is 'Very Long Dollars' in Bet Against Hong Kong
https://www.msn.com/en-gb/finance/other ... vi-AABGQee
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Re: HKD

Postby winston » Fri Jun 28, 2019 7:12 am

How extradition bill crisis threatens HK's Currency Peg

Source: SCMP

https://www.scmp.com/comment/opinion/ar ... ncy-peg-us
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Re: HKD

Postby winston » Sun May 31, 2020 3:27 pm

The Hong Kong dollar's 36-year-old peg to the US dollar will survive current tensions between the US and China - here's why

by Enoch Yiu

36-year-old peg system that fixes the currencies' exchange rate at 7.8 Hong Kong dollars per US dollar.

There is concern US President Donald Trump might revoke the city's special trading status, or even slap sanctions on the city.

In a worst-case scenario, the US could ban Hong Kong from accessing the US dollar clearing pool or add more restrictions on its trading of the US currency, curbs similar to those placed on Iran.

The Hong Kong Monetary Authority (HKMA), the city's de facto central bank, uses HK$4.094 trillion (US$528.6 billion) to defend the peg and to make sure it trades within the range of HK$7.75 to HK$7.85.

In 1998, the government spent HK$118 billion to buy stocks and futures to drive away currency speculators who wanted to break the peg.

Hong Kong was the fourth-largest foreign currency trading hub worldwide, as of April last year, ahead of Japan but after Britain, which ranked top, the US and Singapore.


Source: South China Morning Post

https://finance.yahoo.com/news/hong-kon ... 00818.html
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