Since the beginning of this year, the total of Hong Kong’s foreign exchange reserve assets has decreased by nearly $80 billion, a drop of 16 percent. At the same time, the aggregate balance of Hong Kong’s banking system has also fallen below the “psychological watershed” of $13 billion (HK$100 billion). All these negative data show the liquidity of the Hong Kong market has shrunk, while the Hong Kong dollar interest rate has continued to rise as a result. Some analysts say that this is putting further pressure on the property market and the economy as a whole. Other analysts say that the record high-interest rate reflects that stock market volatility will likely follow….
HK Foreign Reserves Down $80 Billion in 2022, Aggregate Banking System Balance Fell Below $13 Billion
November 9, 2022
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