Why Investors Keep Losing Money Betting Against The Hong Kong Dollar Peg
Odd Lots
Bloomberg
4.5 • 2K Ratings
🗓️ 3 August 2020
⏱️ 45 minutes
🧾️ Download transcript
Summary
For years, macro hedge fund managers have been stalking the Hong Kong Dollar. Since 1983, the currency has been pegged at around 7.75 per US dollar, and it basically has never budged from that. But that hasn’t stopped investors from taking big bets, with potentially major payoffs, that the Hong Kong Monetary Authority would sever the peg in some way. So why do traders keep making this bet, and is now the moment when it finally pays off? On this episode, we speak with Christopher Wiegand, the Chief Investment Officer and Co-Founder of Royal Bridge Capital, about the history of the Hong Kong Dollar, and the factors that have made betting against it such a loser over the years.
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| 0:27.0 | slash subscribe. Hello and welcome to another episode of The Odd Lots Podcast. I'm Tracy Allaway. Hello, and welcome to another episode of the Odd Lots podcast. |
| 0:45.0 | I'm Joe Wiesenthal. |
| 0:46.8 | And I'm Tracy Ella-Wai. |
| 0:48.8 | So Tracy, you're in Hong Kong. |
| 0:51.6 | Obviously, we've been talking about some recent episodes about some of the |
| 0:56.9 | re-emergence of the virus there, but also virus aside. This is just a sort of a big moment in time for Hong Kong |
| 1:05.4 | for obvious reason. Yeah there's no shortage of news flow here in Hong Kong |
| 1:09.8 | aside from the virus we've had a year of unrest in the form of the big protests |
| 1:17.4 | against the extradition law and now most recently in the past month we've had the |
| 1:22.3 | imposition of a new national security law which gives China sweeping powers, I guess you'd say, over Hong Kong. |
| 1:32.0 | Right. So I remember thinking like, you know, a year ago, you know, it's pretty like a, because a year ago by now the sort of like, |
| 1:39.1 | the protests had really gathered steam. Like it was like last summer when we really saw |
| 1:44.8 | the re-acceleration of the protest |
... |
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