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Wednesday, July 25, 2018

Danger is lurking for Hong Kong stock market! - Part 2

Hang Seng Index (HSI)


The HKD is still under tremendous stress as it can be seen from the statistics above which show that the HKD is still near the HKMA intervention rate of HKD$7.85.  This stress is prompting the HKMA to raise the interest rate to reduce the Hibor-Libor spread.  We can also detect the stress in the HSI because it has been trending down from more than 32,000 to around 29,000 as the fear of collateral damages from the higher interest rate sets in.

https://sg-stock.blogspot.com/2018/03/danger-is-lurking-for-hong-kong-stock.html

4 comments:

Eric Ho said...

https://www.bloombergquint.com/markets/2018/08/15/hkma-intervenes-to-defend-currency-peg-for-first-time-since-may

The HKMA has intervened in the currency market again to support the HKD.

Eric Ho said...

https://sg.finance.yahoo.com/news/hong-kong-spends-2bn-defend-currency-peg-071333501--finance.html

The HKMA is running low on reserves to support the HKD.

Eric Ho said...

https://finance.yahoo.com/news/hong-kong-intervenes-again-defend-002204583.html

HKMA intervenes again.

Eric Ho said...

https://www.bloombergquint.com/global-economics/2018/08/28/hong-kong-intervenes-to-defend-peg-for-fourth-time-this-month#gs.AoTWmqk

HKMA intervenes 4th time in August 2018.