Hong Kong to Tap Peg Defense Fund for First Time in 40 Years

Hong Kong is planning for the first time in 40 years to draw money from the fund that ensures the stability of its currency peg, in part to help finance the development of a technology hub on the city’s border with China.

At an annual budget presentation on Wednesday, the government said it would withdraw HK$150 billion ($19 billion) after a record-breaking year for the Exchange Fund, which serves as the last line of defense to maintain the Hong Kong dollar’s peg against the US currency.