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

To: RealMuLan who wrote (2197)	8/28/1998 12:54:00 PM
From: Bosco	Respond to of 2951

G'day all - while the Chinese Govt can [and may have done something already] help HK, IMHO, despite HK's contractory environment at the present time, she can more than adequate to hold her own. In addition to a slugfest with the hedgers, HK economy is quite different from that of Indonesia and the like. To say the least, its business environment is relatively clean [cut throat that it may be] and its housing shortage is real. Of course, the fundamentals are distant fire and may not help to put out neighboring fire. Here is a couple of hat tricks HK can use. Tax relief. While HK taxes are relatively low, additional stimulus by way of tax relief goes a long way to rekindle the shine of the Pearl of Far East. In a way, it is to HK regional govt benefit also. Remember one of its revenue steams comes from land sale, maintaining its stability absolutely vital. HK people are quickstudy. There is no way they will follow Russia's footstep. Therefore, even if her govt has to inject stimulus [by way of tax relief,] it is still a smart thing to do. A more remote possibility is for the chinese govt to call in the markers A lot of HK industrialists are close to the central govt. If the latter suggests that these people may be doing themselves some good in supporting their respective co share price [rumor is that many have been on the sideline looking for bargain,] they will do so [of course, no colusion though <VBG>] Since the hedgers are shorting the HKD and equity market simultaneously, a strong counteroffensive in one area will relief the pressure in the other best, Bosco