Hong Kong Dollar Inflows Surge, Staring Down Capital Flight
- Share demand, mainland inflows are helping boost currency
- Beijing, Hong Kong officials have voiced support for peg
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For all the debate of the future of Hong Kong, investors for now anyway are clamoring for the city’s currency.
The pegged Hong Kong dollar climbed to the strong end of its permitted trading band late Thursday U.S. time, prompting intervention by the de facto central bank. Another round occurred Friday during Asian trade. While concern about looming national-security legislation has spurred speculation about capital outflows, demand for the local currency has risen as investors seek a slice of highly sought share sales in Hong Kong by Chinese tech firms.