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

To: tom who wrote (2310)	9/10/1998 8:49:00 AM
From: Defrocked	Read Replies (1) \| Respond to of 2951

Tom, What do you think of the HKMA's proposal to set up a separate holding company or "government trust" in order to manage their burgeoning portfolio of stocks? How about government representatives on the boards of companies held by the portfolio? Smacks of socialism IMHO. scmp.com If Donald and Joseph wanted to run an investment portfolio they should have resigned their day jobs first. But assembling a US$15 billion portfolio using taxpayers' money was just too hard to pass up at HKMA I guess. I, for one, would now like to incentivize their portfolio performance by linking their compensation to the return on the 120HKD billion they now have under management! Furthermore, since the total amount of funds currently under "management" by HKMA represents 5 years of welfare system expenditures maybe they should also return to the taxpayers any shortfalls from their personal funds. Such shortfalls are highly unlikely, I presume, since Donald and Joseph are obviously smarter than the market.<g>

To: tom who wrote (2310)	9/10/1998 8:55:00 AM
From: Ron Bower	Read Replies (1) \| Respond to of 2951

Tom, In a vote of 45 to 3, the Government called for the same thing. Sir Donald is voicing the opinion of the HK populace. Recent survey had him at 55% approval and 21% disapproval, up from 43%/23%. Protectionism is rearing it's head in all of the emerging market countries and much of it is due to the instability caused by the hedge fund attacks on currencies. When people see their pensions and savings in jeopardy, it's a natural reaction. JMHO, Ron

To: tom who wrote (2310)	9/10/1998 9:17:00 AM
From: Bosco	Read Replies (1) \| Respond to of 2951

G'day all - dear tom, since you also frequent the Asian Forum thread, I won't repeat myself here. Suffice to say I am of different opinion when HK is contrasted with Malaysia. The former may have intervened the market beyond historic norm, it is a far cry to Dr MM's heavyhanded tactics of essentially shutting the financial borders. In a way, you are right. HK is always a haven for speculators. And vulture capitalism is not an unknown feature in its history. However, we are talking about level playing field here. HK will not simply roll over and play dead simply because the hedgers have a deep pocket. Late last year, HKMA has clearly warned it would "burn their a**es" if they tried. So, it is simply carrying out its promise. Ultimately, regardless of the holier-than-thou complaints of free market tampering, this is simply a game of wit. To mix metaphor, it is a matter of who can stand staying in the hot kitchen longer. Since HK's action is specifically targeted against the hedgers, not people whose aim is investment [and use derivative to hedge risks,] I cannot see it can be categorically lumped with the agendas of other SE Asian countries. Of course, we can certainly agree to disagree on our respective perspectives. best, Bosco best, Bosco