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Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (1630)	5/18/1998 8:47:00 AM
From: Ron Bower	Read Replies (2) \| Respond to of 2951

Mike, The article you posted is contradictory to everything we read out of HK and China. It has the appearance of short sellers trying to start a panic selloff of the $HK. It might be successful. What surprised me about the article was the references to US fund investment in HK and China. It seems to me that they had already pulled out in panic. I'd think those remaining would be committed. China is relying on a large export surplus this coming year. Wouldn't a devaluation of the Rmb prevent this? Do you feel that emotions are controlling the market activity rather than fundamentals? That most of what's been happening is a result of monies being pulled out of the region? It just seems to me that the 'panic' is the cause rather than the result. Reaction to articles like the one you posted. Thanks, Ron

To: MikeM54321 who wrote (1630)	5/18/1998 10:01:00 AM
From: Tom	Read Replies (1) \| Respond to of 2951

If they (China/HK) wanted to go all-out, they have US$240 billion for use in defending the peg. Foreign Exchange Reserves (US$ bil) Japan 223.6 Mar 1998 China 140.6 Feb 1998 Hong Kong 96.8 Mar 1998 Taiwan 84.0 Feb 1998 Germany 82.2 Feb 1998 Singapore 74.1 Feb 1998 US 71.3 Jan 1998 Spain 69.0 Feb 1998 Italy 57.8 Feb 1998 Brazil 51.0 Dec 1997 Source: HKMA, IMF, Reuters