China | Not time to say goodbye to HKD peg

The HKD depreciated from the strong end of its narrow band of 7.75 to near its weak end of 7.85 against the USD in mid-April, touching its lowest level since 2005. Despite some rising voices of questioning the sustainability of the linked exchange rate in the market, we firmly believe that foregoing the USD peg is an unlikely scenario in the short term for Hong Kong.

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