Why The Currency War Isn't Over In Hong Kong

The speculative winds came late to Hong Kong, but when they arrived on Oct. 20, they hit like a typhoon. Finally faced with the same currency pressures battering the rest of Southeast Asia, the territory's financial markets felt the pain immediately. As interest rates soared in defense of the local dollar, the hectic Hong Kong stock market, heavily weighted toward financial and property companies, dropped by nearly a third--its steepest decline since 1989.

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