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

To: Joseph G. who wrote (2214)	8/30/1998 4:00:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 2951

The HKMA will have opportunities to drift the shares back into the market eventually, but I don't think they will have to wait that long. I think they will squeeze the funds with new regulations that will force them to buy the shares at higher prices. They can hold the equity positions far longer than the hedge funds can hold their shorts. The HKMA has already shorted many of the shares into Sept contracts. What happens if they change the regulations in a way that forces the hedge funds to cover their short positions instead of rolling over into October? The hedge funds can risk more shorting to drive the market down and it would be easy because there would be no buyers except those covering short positions or those looking for bargains, but sooner or later he funds will have to cover. If the rules change... It's getting real interesting to say the least. JMHO, Ron