Budweiser and Alibaba flag Hong Kong dollar oddity

China Literature

10/07/2019 02:23

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Christopher Beddor
    HONG KONG, July 10 (Reuters Breakingviews) - As the two
companies kicked off plans to raise some $20 bln combined, the
currency bounced. In a place where stocks are worth over 1,000%
of GDP, local money demands can move markets. Former central
banker Joseph Yam’s warning about the challenges of such a
system look prescient.
    Full view will be published shortly.
    On Twitter https://twitter.com/cbeddor
    
    CONTEXT NEWS
    - The Hong Kong Interbank Offered Rate rose on July 4, with
one-month and two-week rates reaching their highest levels since
October 2008. The Hong Kong dollar posted a 0.33% gain against
the U.S. dollar in June, its biggest monthly rise since
September 2008. The higher rates pulled the currency to 7.8
against the greenback as of July 8.
    - For previous columns by the author, Reuters customers can
click on  BEDDOR/ 
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    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Hong Kong rates hit 2008 highs, HK$ rallies before jumbo InBev
IPO     urn:newsml:reuters.com:*:nL4N2450VE
BREAKINGVIEWS- Budweiser serves up a pricey pint in Hong Kong   
 urn:newsml:reuters.com:*:nL4N2430AZ
BREAKINGVIEWS- Hong Kong currency peg seduces yet again   
 urn:newsml:reuters.com:*:nL3N22B0E8
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Jeffrey Goldfarb and Katrina Hamlin)
 ((christopher.beddor@thomsonreuters.com; Reuters Messaging:
christopher.beddor.thomsonreuters.com@reuters.net))