Damned if they do, damned if they don't
Article Abstract:
There are mixed views about whether the decline in the Hong Kong stock market will turn into a full-scale collapse or whether a recovery will soon take place. The main uncertainty is the future of the Hong Kong dollar's peg to the US dollar at 7.80. It is possible that the Hong Kong dollar has now become overvalued, and defending the peg now requires extremely high interest rates. Observers are expressing mixed opinions about the likely repercussions of a free-floating Hong Kong dollar.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
After the party
Article Abstract:
Hong Kong stock prices have performed well despite the handover to China and red chip stocks have performed especially well. There is some concern about a speculative element in the market and the consequent risk of sharp price falls. Rises in US interest rates could affect Hong Kong stock prices due to currencylinks with the US dollar. The Chinese government could intervene to control investment in the real estate market and capital gains tax could affect the real estate industry.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
US holds the whip hand
Article Abstract:
Hong Kong's stock market has been volatile due to concern that interest rates could be raised to defend the currency. Hong Kong has large currency reserves and is backed by China. The Hong Kong dollar does not appear to be overvalued and economic fundamentals appear favorable. Yet domestic confidence is important and this could be affected by a drop in US stock prices due to concern about interest rates, or by problems in mainland China.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Promises unfulfilled on the Internet. Who's the one with integrity now? System integration still under construction
- Abstracts: Selling Shenyang. Waiting for the barbarians. Perseverance a prerequisite
- Abstracts: Whys and wherefores of the windfall tax. Gordon's big day. On whom the apples hit
- Abstracts: The rate debate heats up. No danger. The bank's fine monetary judgement
- Abstracts: The pause that refreshes. How to tap into Europe's most dynamic marketplace. A year of two halves for Europe