Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Macroeconomics

<p>Hong Kong has been making the headlines. The gap between Hong Kong money market rates  and US rates has led to a bout of currency weakness as traders take advantage of the borrowing cost differential to borrow HK dollars only to sell for US dollars (in an arbitrage called the carry trade). The Hong Kong dollar has tested the weak end of the HK$/US$ 7.75 – 7.85 trading band, introduced in 2005, compelling the Hong Kong Monetary Authority (HKMA) to intervene repeatedly to defend the peg. Markets…</p>

Hong Kong has been making the headlines. The gap between Hong Kong money market rates  and US rates has led to a bout of currency weakness as traders take advantage of the borrowing cost differential to borrow HK dollars only to sell for US dollars (in an arbitrage called the carry trade). The Hong Kong dollar has tested the weak end of the HK$/US$ 7.75 – 7.85 trading band, introduced in 2005, compelling the Hong Kong Monetary Authority (HKMA) to intervene repeatedly to defend the peg. Markets…

MSCI AC Asia ex Japan Index (MXASJ INDEX)

Hong Kong Economy & Peg - What China Slowdown? What Threat?