Hong Kong Dollar (HKD)

QUOTE AND NEWS
Wall Street Journal  Mar 14  Comment 
Hong Kong property tycoon Cheng Yu-tung's New World Development Ltd. plans to take its China unit private for 18.6 billion Hong Kong dollars.
TechCrunch  Mar 12  Comment 
Alibaba has agreed to spend HKD $6.24 billion (about USD $804 million) for a 60% stake in TV and film producer ChinaVision Media Group. The purchase will allow Alibaba, which already dominates China's e-commerce market, to boost its digital...
Times Online  Jan 23  Comment 
The father of Asia’s most famous lesbian said he would double his reward to a male suitor, offering HK$ 1...
SeekingAlpha  Jan 10  Comment 
By Yuanxi Zhang: (Editor's Note: This ticker trades with more liquidity on the Hong Kong Exchange under ticker 0074.) Recommendation: Long Great Wall Technology (OTC:GWTCF), (0074: HKSE) at HKD 3.00 Target Price: HKD 3.18 Thesis Great...
Wall Street Journal  Dec 13  Comment 
Hong Kong's largest initial public offering of the year priced near the middle of its estimated range of $3.98 in Hong Kong dollars per share.
Mondo Visione  Oct 8  Comment 
Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has announced that with effect from the commencement of trading on Thursday, 10 October 2013, the minimum margins to be...
Benzinga  Sep 9  Comment 
SCA has decided to make a public cash offer for the Chinese tissue company Vinda (OTC: VDAHY). The offer is conditional upon SCA achieving an ownership share in… SCA has decided to make a public cash offer for the Chinese...
Benzinga  Aug 15  Comment 
Swire Pacific (OTC: SWRAY) reported a 22% drop in its first-half net profit. Swire Pacific's net profit for the six months declined to 6.61 billion Hong Kong dollars (US$850 million), versus HK$8.42 billion, in the year-ago period. Its...
Wall Street Journal  Jul 26  Comment 
Hong Kong's de facto central bank lost more than $3 billion on its investments in the second quarter, and it sees more volatility ahead.
Financial Times  Jun 10  Comment 
Thanks to Hong Kong’s dollar peg, the territory’s markets are caught between the US Federal Reserve’s policy musings and slowing Asian growth




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The Hong Kong Dollar is the currency of the Chinese SAR of Hong Kong. It is denoted with a leading $, though in an international context the $ is often appended to an "HK" to distinguish the currency from other dollars. For example, within Hong Kong $48 is read "forty-eight dollars," while in an international context the same value might be written HK$48 and read "forty-eight Hong Kong dollars".

The chart at left shows the USD/HKD Currency Pair; the number of Hong Kong Dollars equivalent to 1 U.S. Dollar (USD).


Linked Exchange Rate System

Pegged exchange to US Dollar (1USD = 7.80HKD)

The linked exchange rate system of Hong Kong was launched on 17 October 1983, in reaction to a currency crisis arising from the Sino-British dispute concerning the political future of Hong Kong after 1997. The Hong Kong dollar was floating rapidly downwards, indeed plunging, in the foreign exchange market at that time, and the local authorities were desperate to find a solution to save it.

The solution, i.e. the linked exchange rate system, or simply the "link" which pegged the Hong Kong dollar to the US dollar at the rate of 7.80, was not a new invention. It was in essence a resurrection of the "currency board" scheme adopted in the territory from 1935 to 1972, with some modifications.

A bank can issue a Hong Kong dollar only if it has the equivalent exchange in US dollars on deposit. The currency board system ensures that Hong Kong's entire monetary base is backed with US dollars at the linked exchange rate. The resources for the backing are kept in Hong Kong's exchange fund, which is among the largest official reserves in the world. Hong Kong also has huge deposits of US dollars, with the 2008 estimate being at over US$ 700 billion

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