Xia Qiu,
I have been trying to understand HKMA's actions since it started and my opinion have swayed back and forth. At the moment, I think HKMA is actually going to win the battle, if not the war.
Unlike Thailand, HK is a lot more savvy and I doubted HKMA would make such a move without holding some trump cards. The speculators may be surprised to find out that while they think they are playing football, HKMA is in the process of changing the game to soccer. By making a few changes in exchange rules, they can keep stacking the deck against the speculators.
So what if HK sacrifices its reputation as the freest market in Asia? So what if the speculators lose a ton of money and cry foul?
Unlike Korea, Indonesia, Malaysia and many others, HK does not really need foreign capital to survive. They are not hopelessly in debt, especially foreign debt. So what if they end up owning a chunk of HK Inc.? How much of Japan Inc. is the Japanese government going to end up owning, when they start stepping in to support the Japanese banks? They have no resources other than a well educated money hungry population of 6 million with proven resiliency.
Just a few thoughts. At least we don't have long to wait for the results.
Ramsey |
