Hong Kong “knows a thing or two” about boom and bust, says Harry Wilson in The Sunday Telegraph. Spectacular bubbles have been followed by huge crashes throughout its history, with low US interest rates often to blame.
The Hong Kong dollar is pegged to the US currency, so the former UK territory tends to import lax US monetary policy – and the sector everyone rushes into is property. But this time the source of the problem is closer to home.
Hong Kong “is in the path of a typhoon developing on the mainland”, according to Sharmila Whelan of Asianomics.
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