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

To: Ron Bower who wrote (2215)	8/30/1998 4:21:00 PM
From: Joseph G.	Read Replies (2) \| Respond to of 2951

I don't know ALL the details, and therefore don't have a specific opinion on the outcome of this affair, but: (i) it is possible to hold short shares indefinitely, or, at least, for a year or two. (ii) index futures are settled in cash, not shares. (iii) many large cap HK stocks have ADRs, and are listed in London, so it is possible to borrow HK stocks outside of HK. (iv) change of rules and some over similar actions amount to an outright confiscation of foreign capital; countries that do these kind of things can't expect foreign investor confidence in years to come. (v) since HKMA has no control over global economic situation, they are to a large extent gambling with the resources that were entrusted to them - not a wise behavior expected of an administration. ...