No, Hong Kong Won't Abandon The Peg
A Bloomberg op-ed piece on the 5th June concludes it is time to move on from "from an archaic currency regime". That conclusion appears presumptuous. And uninformed.
A key tenent of this piece is that HK's benchmark interest rates are (or were) significantly - and stubbornly - lower than US rates. Yet this "anomaly" is easily explained.
The article fails to discuss the impact from CATL (3750 HK)'s IPO on the peg; and even what would replace the peg (IF it were replaced).
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