QE3 Adds to Hong Kong Asset Bubble Risks, HKMA’s Chan Says
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Hong Kong’s central bank head said a third round of quantitative easing by the U.S. Federal Reserve risks pushing up property prices that have already surpassed their 1997 peak, and may prompt the city to adopt more cooling measures.
“The launch of QE3 and the short-term improvement of the European debt crisis will increase the risk of overheating in Hong Kong’s asset market,” Norman Chan, chief executive of the Hong Kong Monetary Authority, told reporters at a briefing today. “We will further introduce more counter-cyclical measures when appropriate.” Chan will address reporters again at 4:30 p.m. local time today, the HKMA said in an e-mailed statement.