00:00Frances, maybe let's just take it back a step and look big picture.
00:04And what exactly has led to this dynamic in the first place?
00:09OK, if we remember, actually, during early May, Hong Kong MA did intervene, but to the other side when the PEC actually hit the lower bound.
00:17So subsequently, a lot of liquidity has been injected into the Hong Kong dollar in the bank market.
00:23And now that spot has since been going higher and market actually has already been expecting this to happen for quite some time now because spot dollar honky was trading very near the top side for most of this month.
00:36And in fact, actually, over recent few days, spot did touch 7.8500 without trigger any effects intervention before overnight because I guess of this very negative Hong Kong dollar, U.S. dollar interest rate differential,
00:51meaning Hong Kong dollar interest rates are very much below dollar interest rates.
00:56A lot of carry trades have been put on with likely some profit taking level just put at 7.8499 level.
01:05So it has been taking quite a while for Hong Kong MA to chip in.
01:09So now going back to the latest ethics intervention, the amount was actually quite small at 9.4 billion level.
01:17Just now we mentioned about the earlier liquidity injection.
01:20So in the bank liquidity, in the Hong Kong dollar market is at around 170 billion.
01:27So in order to bring this 170 billion down to some meaningfully lower level, then we suspect that further or additional ethics intervention will be needed.
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