Hong Kong long term interbank rates drop to nine-year low after Ant IPO pulled

The Business Times | Nov 5, 2020 at 1:00 AM
  • Long term Hong Kong dollar interest rates reached nine-year lows on Thursday after the suspension of Ant Group’s record dual listing in the city and on Shanghai’s Star Market left the former British colony flush with liquidity.
  • Whether, when, and at what scale Ant will resume its IPO is unclear, leaving the Hong Kong dollar set for a volatile time, at least within the confines of its narrow 7.75-7.85 band against the US dollar.
  • The Hong Kong dollar weakened to a six month low of 7.7575 on the greenback on Wednesday from 7.7520 at Tuesday’s close, pressured by money leaving Hong Kong after the Ant IPO as well as due to uncertainty around the US presidential election.