Monday, September 25, 2017
Hong Kong launched preemptive strike to cope with capital outflow
ANBOUND
Hong Kong has launched a preemptive strike to cope with the capital outflow. It is a common expectation that the Federal Reserve will officially announce the initiation of contractionary policy, which will boost the interest rate in the future. If the discrepancy between the US and Hong Kong interest rate is too large, considerable amount of capitals outflow from Hong Kong will happen, creating turbulence to the financial system. Thus, the Hong Kong Monetary Authority's launch of the preemptive strike that announces the increase 40 billion exchange fund bill to retain a total of 80 billion HKD in a short period.