, Columnist
Hong Kong's China Loan Pipe Is Gurgling Too Loud
Excess liquidity is being flushed to where it’s at a premium.
The Hong Kong Monetary Authority doesn't have many levers to pull here.
Photographer: Fatido/Getty Images
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While Hong Kong’s stock and bond investment pipes to mainland China get much attention, a third link between the financial center and the People’s Republic has largely flown under the radar.
The hidden “connect” hooks up banking flows from the city with borrowers up north; it’s large, and growing fast. Left unchecked, it could weaken Hong Kong’s lenders.