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Is there any upside to HK supporting its peg to the US dollar?
Possibility of city dropping peg arises after US threat to end its preferential treatment
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The United States' threat to end the preferential treatment of Hong Kong has not only injected greater uncertainty to investor and business confidence, but has also thrown up the question of whether there is any upside in the long run to pegging the Hong Kong dollar to the greenback.
Mr Brock Silvers, managing director at Adamas Asset Management, said the Hong Kong Monetary Authority (HKMA) has "little choice but to publicly support the dollar peg", as any other response would roil the market.
