Economics
What the End of Hong Kong's Easy Money Era Means for Home Prices
- City’s currency jumps most in 15 years on liquidity concern
- Hong Kong home prices have risen 175% in the past decade
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A shock jump in Hong Kong’s currency is signaling a decade-long liquidity party is finally coming to an end. That may be bad news for the city’s housing market.
The Hong Kong dollar surged as much as 0.6 percent on Friday, its biggest gain in 15 years. While traders gave differing reasons for the move, the common theme was concern that the city’s borrowing costs will catch up with those in the U.S. as the Federal Reserve continues to hike rates.