Tom,
To add to Bosco's comments.
I do have investments in Hong Kong and also disagree with your conclusions.
The property markets in Honk Kong are a reflection of the business economy, not 'THE business economy'. Hong Kong is a center for international commerce in Asia and a conduit to China, but it is also an industrial and transportation center. The growth in the various business sectors over the last few years has caused the increase in real estate values. The decline Asia's economy has caused a reduction.
I don't understand how lower real estate values means the $HK should be devalued. One has nothing to do with the other. If you were to say that the HK economy would be in the tank for the next few years and foreign exchange reserves would decline, then I could understand, but the real estate values have nothing to do with the HKMA reserves that back the $HK.
It's not just the infrastructure improvements that Bosco mentions, recent reports indicate that tourism is increasing, exports and commerce are doing very well, confidence is coming back to Hong Kong. They are a long way from recovery, but HK has a history of succeeding over adversity. They won't lay down, they'll come out swinging as the recent HKMA actions indicate. While the other countries were being mauled by the hedge funds, HK has stood up to them and if the economy continues to strengthen, the hedge funds will be taking a bath.
Don't count HK or China out. IMO it's the place to be buying.
FWIW,
Ron |
