QE2 places pressure on HKD-USD peg

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QE2 places pressure on HKD-USD peg

November 19, 2010

From Daniel Flatt

The US’ attempt to print its way to a healthier economy has placed strain on Hong Kong and its currency’s pegging to the US dollar, says RBS. But this will still not be enough to force a de-pegging until the next most applicable currency, the yuan, is fully convertible.

US quantitative easing is the biggest threat to the viability of Hong Kong dollar’s peg to its American counterpart, says Erik Lueth, economist at Royal Bank of Scotland.

A key reason for this is based on the theory of...

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SOUTHEAST ASIA DCM

Rank

Bookrunner Parents

Deal Value $ (Proceeds) (m)

No.

%share

2012 YTD Rank

Standard Chartered Bank

3,991

8.9

HSBC

3,710

8.3

Goldman Sachs

3,333

7.4

Deutsche Bank

2,895

6.4

Citi

2,774

6.2

JPMorgan

2,288

5.1

DBS

2,106

4.7

Siam Commercial Bank

1,835

4.1

Barclays

1,586

3.5

CIMB Group

1,523

3.4

Subtotal

26,040

123

57.9

Total

44,958

212

100.0

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