Hong Kong’s Shock Move to Tap Dollar Defense Fund Fuels Concern

Hong Kong’s proposal to pull HK$150 billion ($19 billion) from a fund used to defend the currency’s peg with the greenback shocked some officials and raised concern over the precedent it sets.

There was widespread surprise in Hong Kong on Wednesday when Financial Secretary Paul Chan unveiled the plan to transfer cash from the city’s Exchange Fund to finance a giant technology hub project and other infrastructure works. It would be the first withdrawal since 1984.