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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: borb who wrote (1085)	6/9/1998 11:13:00 AM
From: fut_trade	Read Replies (1) \| Respond to of 3902

>Hong Kong Unlike it's Asian Neighbors Japan, Korea, Singapore, Malaysia and Taiwan, Hong Kong does not produce semiconductor and other computer related products. There are virtually no high-technology industries here. Hong Kong faced a crisis of sorts 15 or so years ago and has since transformed itself into a financially-based center -- to the best of my understanding. I do not know why the HKD is pegged to the US dollar, but the last thing anyone wants to do here is remove that peg. My rent is fixed by a one/two year lease, as is my salary (paid in HKD), so no matter what happens, currency valuation has no net impact on me -- although my understand is that rent prices are in general on the decline. I don't know enough about the Hong Kong economy now to know what would cause major havoc, but unlike Japan and Taiwan -- countries who derive a large fraction of revenue from high-technology exports, Hong Kong is in a different boat.

To: borb who wrote (1085)	6/9/1998 2:16:00 PM
From: fut_trade	Respond to of 3902

Borb, I just read a few recent WSJ articles concerning Hong Kong. In summary, Hong Kong will have some economic difficulties over the next year or so, unemployment will increase etc. However, Hong Kong's service-oriented economy will get pulled back up as China recovers next year. Hong Kong's banks are fat and liquid, and have the muscle to fuel the small and medium size businesses with loans when they will be needed. Property value and the Hang Seng will continue the downtrend for awhile longer, but will reach a bottom in less than a year IMHO.