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OPEC Plus, in Symbolic Gesture, to Increase Oil Production
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The announcement came days after the United Arab Emirates withdrew from the
group. The higher output will have little effect on global supplies.
15 hours ago
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The Hong Kong Monetary Authority (HKMA) spent $603 million selling Hong Kong dollars to keep the currency within its permitted band — its first intervention since 2009. Renewed risk appetite after signs of stabilization in the euro zone and better news on China’s growth explained the inflows.
For global investors, intervention by Hong Kong’s de facto central bank is an important signal — the liquidity party is back on. How this party ends is less clear. The authority’s willingness to defend the near-three-decade-old currency peg further could be put to the test if inflows escalate and the greenback weakens.
Click to Play Developer unveils micro-homes in ChinaChina's largest property developer, China Vanke, is unveiling new 160-square-foot ‘micro-homes’ at its facility in Dongguan.
So far, the impact of quantitative easing by the Federal Reserve in Hong Kong has followed a well-worn path, which this column discussed in July. ( Read: Asia readies for QE3 roller coaster. )
As overseas money flows arrive, they push down interbank rates, delivering a liquidity boost to the local economy. Because inflows cannot be absorbed by the currency strengthening due to the currency peg, this tends instead to drive up asset prices.
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