Conventional monetary authorities take action in markets that are part of a money supply, that is, currency and fixed income. Equity securities are not considered to comprise a component of the money supply, therefore it is not clear to me whether the action of HKMA is directed at maintaining a stable currency, which is their job, insofar as possible, or is directed at pegging share values, which is not their job, and is futile.
There is very extensive historical evidence that currency support often works, and there is equally extensive historical evidence that artificial support of stock prices, public or private, never worked in practice - not one case that I am aware of. |
