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Strategies & Market Trends : HONG KONG

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To: Ron Bower who wrote (2307)9/10/1998 6:47:00 AM
From: tom  Read Replies (3) of 2951
 
"Donald Tsang calls for a set of rules to be introduced against speculators and hedge funds"

Not only is this a rather silly statement that makes him sound like dear old Dr Mahatir it is also incredibly hypocritical. Hong Kong has made speculation its by-word for the last 10 years. Speculation on currencies, horses, property, stocks were the primary activities of HK's residents during the golden days of negative interest rates and strong global liquidity flows. Now the situation has changed they don't want to play anymore. All global investors are doing is selling HK assets as they know the poor fundamentals dictate further falls in property and equity prices. Government support in the face of asset deflation doesn't work. Unless you consider Japan a shining example.
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