Economics
Ackman Won’t Realize Bet on Hong Kong’s Peg, K.C. Chan Says
This article is for subscribers only.
Hedge-fund investor William Ackman won’t realize his bet that Hong Kong will amend its 29-year-old peg to the dollar, said K.C. Chan, the city’s secretary for financial services and the treasury.
The Hong Kong Monetary Authority has injected almost $14 billion since Oct. 19 as the local currency’s move to HK$7.75 obliged it to buy U.S. dollars in the foreign-exchange market. Ackman, the founder of New York-based Pershing Square Capital Management LP said Oct. 20 he was keeping his call contracts on the city’s currency and suggested Hong Kong revalue its dollar 30 percent higher versus the greenback to curb inflation.