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How much further?
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| posted by Zebedee 192 days ago |
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USD entering a new phase of weakness, which in effect is giving us almost daily pay-cuts with HKD spending power ! The low tax and free hand-outs from the Government are prolly just about equalizing our positions, if you're earning / living in HK.
How low do you think USD will go this year? Anyone bullish out there predicting HKD will de-peg if situation deteriorates significantly??? If HKD did de-peg from USD, reckon we'd see a 10% strengthening of HKD overnight !
Z
Whatever...
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| posted by puyi 192 days ago (edited 192 days ago) |
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agree cant see the wisdom in being pegged to a failing ecconomy ( and hk is a part of china)....nor in the rationale of following the usa's lead of dropping interest rates whilst having inflationary pressures.......
just seen that the oz frb will seek a .5% interest rates rise which will be the highest since 1996 this is their effort to rein in inflation
darren rudd is and never was a sinophile
but the reports were a smoggy mistake
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| posted by Gimpmask 192 days ago (edited 192 days ago) |
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The peg is certainly a driving force of HK inflation. But the HK currency is too fragile if remain unpegged. Pegging to the RMB is too risky in my opinion. Personally, I think unpegging is a bit shortsighted and would lead to great instability.
But then, I'm not an expat here to make a quick buck.
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Having testicles is like being chained to the village idiot.
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| posted by xpat-Aussie 192 days ago |
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My company deals in USD and it hursts. On the other hand, the weak dollar is certainly helping my comodity plays.
"...and once you have tasted flight,
you will walk the earth with your eyes turned skyward,
for there you have been and there you long to return...."
-Leonardo DaVinci
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| posted by smiley 192 days ago |
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My take is that, ultimately, RMB will be the currency of HK. However this cannot happen until the RMB is a fully convertible currency. It is still unclear when this will happen. So we are stuck with the HKD 'til then. But hey, with HKD weakening, inflation steaming ahead and interest rates falling HK$ assets should do well!
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| posted by Gimpmask 192 days ago |
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until the growth cannot be sustained or the prices cannot be justified and then it all implodes.
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Having testicles is like being chained to the village idiot.
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| posted by Zebedee 192 days ago |
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I tend to agree that we're heading toward RMB integration at some point, but when, who knows - 1, 2 or 5-10yrs away, anybody's guess??? I also agree about HKD assets, but its one's earnings in HKD that are really getting hit i.e. spending power what with inflation as well e.g. petrol / food / airtravel / branded goods. To think HKD100K in the early 90's was not far from GBP10K, but now at 15.5 it's less than GBP6.5K, certainly less attractive for overseas professionals (e.g. Aus / UK / Canada etc) to come to HK I reckon with outgoings in their home currencies. Keep hammering your employer for good pay rises, I say.
Z
Whatever...
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| posted by smiley 192 days ago |
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The glass always half empty?
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| posted by Gimpmask 192 days ago |
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Try to negotiate those fat expat packages so that you get paid, say, 80% in your home currency and 20% in HKD
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Having testicles is like being chained to the village idiot.
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| posted by Zebedee 192 days ago |
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Errrh Gimpmask - if you've been around HK a while you'll know that such packages are very few and far between now, even the Investment Banking industry has significantly cut back. I know only a couple of people left on such packages, but they catch being, they don't benefit from the 15% local tax.....Employer's simply 'equal' everything out, adjust pay accordingly, so you fall in line as a comparison with counter parts in home country.
Whatever...
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| posted by Zebedee 192 days ago |
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Smiley - akchully that is the case if you look at things purely financially, but for me it's less than half the picture, as I like living / working in HK for many many other reasons. If one's NET financial position was completely EQUAL living / working in say UK and HK, personally I'd still live in HK.
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| posted by Juno Watt 192 days ago |
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quote:
Originally posted by puyi
hk is a part of china
I don't know where I'd be if HKxp didn't keep me up to date with current events.
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| posted by Gimpmask 192 days ago |
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quote:
Originally posted by Zebedee
Errrh Gimpmask - if you've been around HK a while you'll know that such packages are very few and far between now...
Allow me a bit of tongue-in-cheek, sarcastic fun.
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Having testicles is like being chained to the village idiot.
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| posted by puyi 192 days ago |
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quote:
Originally posted by Juno Watt
quote:
Originally posted by puyi
hk is a part of china
I don't know where I'd be if HKxp didn't keep me up to date with current events.
you mean loco events
darren rudd is and never was a sinophile
but the reports were a smoggy mistake
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