Bill Ackman, billionaire founder of hedge fund Pershing Square Holdings Ltd., wrote on Twitter Nov. 24, “By holding put options, we have a large nominal short position on the Hong Kong dollar.” He said that the linked exchange rate system no longer makes sense for Hong Kong. It is just a matter of time before the Hong Kong dollar decouples from the U.S. dollar for good.
Ackman also said in the post, “Given the continuous decoupling of China and the United States in recent years, we find it particularly surprising and embarrassing that China continues to peg the Hong Kong dollar to the U.S. dollar.” His tweet also mentioned Richard Cookson’s special report on Bloomberg, which discussed the pressure on Hong Kong because of it was pegged to the U.S. currency….