Recently, Hong Kong's financial market has experienced continued turmoil.

ANBOUND’s research team believes that in the short term, Hong Kong dollar will face the unprecedented risk of breaking away from US dollar.

The duration and the severity of the risk depend very much on the degree of decoupling between the Sino-US economies.

The continued downward trend in China’s economy, depreciation of RMB and interventions and suppression by China’s central bank on Hong Kong’s market will inevitably become the three major factors leading to the massive capital outflows.

In order to guide the market expectations effectively, it is necessary for the central bank to step up the efforts to stabilize RMB exchange rate, enhance policy transparency and ensure sufficient communication between the regulatory departments