Record Hong Kong Peg Defense Boosts Liquidity to $58 Billion
- City’s de-facto central bank has stepped in multiple times
- Elevated liquidity pool will mean interbank rates stay steady
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Investors keep piling into Hong Kong ahead of Ant Group Co.’s mega listing, with demand for the local dollar prompting authorities to flood the banking system with unprecedented liquidity.
The Hong Kong Monetary Authority on Tuesday sold a record HK$31.8 billion ($4.1 billion) worth of local dollars to curb the currency’s strength. This will lift the interbank liquidity pool to almost HK$450 billion on Thursday, surpassing the previous high in 2015.