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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (5405)	8/7/1998 8:49:00 AM
From: Bosco	Respond to of 9980

G'day all - while we are on the subject of HKD, here is the short term view... biz.yahoo.com Personally, I do not believe HK will de-peg or China will de-value. However, I do think speculative attack is more than a one dimensional attack. HKMA's interest rate change and the purchases of USD by local businesses can exersebate the situation. IMF or other central banks' support will alleviate the panic driven attacks. If memory serves, back in the 60s, there was a run at Hang Seng Bank until HSBC stepped in. Ultimately, I think the cure rests in Japan. The new boss is dragging the foot again. If indeed the Japanese govt is attempting to export her way out of her mess by allowing the Yen to go, the death spiral will continue and even the US will not be immuned from the turmoil. best, Bosco

To: Stitch who wrote (5405)	8/7/1998 10:29:00 AM
From: tom	Read Replies (2) \| Respond to of 9980

It is an unorthodox solution but I think under the circumstances the IMF would go for it. They would prefer that to global meltdown. Interesting to see Mr Dai Xianglong, Governor of the People's Bank of China, say that although he considered that it was the bank's policy to hold the RMB "a small adjustment on the rate is not to be ruled out". Is that like getting "a little bit pregnant"?