Hong Kong braces for the return of hot money in search of yield, as near-zero rates resurrect the era of cheap funds

Hong Kong’s monetary authority, which spent two decades amassing one of the world’s largest foreign exchange holdings, is bracing for the return of hot money after the US Federal Reserve executed an unprecedented one-two punch of rate cuts to fight the coronavirus pandemic.An estimated US$130 billion of funds flooded Hong Kong between the global financial crisis in December 2008 and the end of the US Fed’s quantitative easing (QE) seven years later, as rate cuts meant to salvage a US economy…

from South China Morning Post https://ift.tt/2IUMU40
Enoch Yiu Hong Kong’s monetary authority, which spent two decades amassing one of the world’s largest foreign exchange holdings, is bracing for the return of hot money after the US Federal Reserve executed an unprecedented one-two punch of rate cuts to fight the coronavirus pandemic.An estimated US$130 billion of funds flooded Hong Kong between the global financial crisis in December 2008 and the end of the US Fed’s quantitative easing (QE) seven years later, as rate cuts meant to salvage a US economy… https://ift.tt/eA8V8J March 19, 2020 at 02:00AM