DEFROCKED,
WOW! I knew they were buying $HK to support price, but I didn't know they were getting into the equities market.
How is this different from the US Savings and Loan bailout? US intervention to support the yen? Hong Kong investors, companies, banks, were all losing billions and a continued market decline would have meant bankruptcy for ....? Possibly the entire economy as people saw their savings and retirement funds wiped out.
In this case, I think it was the proper thing to do because they were looking at a total panic selloff. It's not something they would do except in extreme situations. As you can see by today's market, it stopped the selling frenzy and turned the market around. I imagine they wil lslowly sell the securities back into the market, perhaps even make a profit and further grow funds. It also dends a comforting message to investors in the market.
You know, it really doesn't matter what we think, but what the HK peoples think. I believe most would feel relief that they stepped in.
JMHO,
Ron
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