Bets Against Hong Kong Reach New Extremes in Financial Markets
- Bearish bets against city’s shares are highest on record
- Hong Kong dollar, property prices weaken as residents flee
A pedestrian crosses a near empty road in Hong Kong, on March 1.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
Investor confidence in Hong Kong is dwindling as the government loses its grip on an escalating omicron outbreak.
Bearish bets against the city’s shares have climbed to records and the benchmark Hang Seng Index is near a two-year low. Residents are converting the local currency into China’s yuan at the fastest pace in more than a decade, while the Hong Kong dollar is moving toward the weak end of its trading band against the greenback. Even the city’s typically resilient property market is showing cracks, with a gauge of home prices falling to an 11-month low.