24/09/18

Hong Kong Money Markets Explode 'Most Since Lehman' As Carry Trade Unwinds



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Hong Kong Money Markets Explode 'Most Since Lehman' As Carry Trade Unwinds
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After more than five months of trading at or near the lower band of its currency peg (prompting repeated interventions by the city's de facto central bank), the Hong Kong Dollar exploded stronger last week, imploding short-HKD carry traders and the carnage is for all to see tonight as HK liquidity markets are in crisis.

As Bloomberg reports, a shock jump in Hong Kong's currency is signaling a decade-long liquidity party is coming to an end. That may be bad news for the city's housing market.

The chance of local banks ....

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