Historic demand for the Hong Kong currency ahead of the launch of Ant Group

The demand for Hong Kong's currency has seen the most demand since the global financial crisis, with the approaching initial public offering of Ant Group, owned by Chinese business tycoon, Jack Ma.

According to Arabiyanet, the price of the local currency in Hong Kong, which is moving in narrow bands as the central bank tightens its grip on it, has risen to its highest levels since April In the past, amid high investor demand to participate in the offering of the Chinese giant, according to Bloomberg News.

and the strong foreign cash inflows forced monetary policy makers to sell billions of dollars of the local currency, which amounted to about 286 billion Hong Kong dollars since the beginning of the year, or the equivalent of about 37 billion US dollars, which is the largest annual increase than during the global financial crisis in 2008 and 2009.

and since last March, the demand for local currency-denominated assets in Hong Kong has risen steadily with the decline in the attractiveness of US dollar-denominated assets in light of the easing moves by the US Federal Reserve Its monetary policy is what caused the return on assets to decline in an environment of zero interest rates.

and similar to what happened in 2009, the demand for Hong Kong currency increased as investors lined up to participate in initial public offerings in the money market, at a time expected to witness In which the subscription to the IPO of the Chinese company Ant Group is a fierce request.

and the initial public offering on the Hong Kong Stock Exchange collected about $ 23.4 billion since the beginning of the year until the end of last September, which is the third highest value of initial public offerings in global financial markets in the midst of the Corona pandemic According to a research note issued by JD.com.

According to Bloomberg, the most prominent reason for the strength of the local currency in Hong Kong this year is its return advantage against the US dollar, as the price premium is On the interest of the Hong Kong dollar against the US dollar, about more than 100 basis points, the highest level since 1999.