Daiwa Capital’s Lai on Hong Kong Growth, Dollar, Liquidity

The video discusses Hong Kong's unique status and its benefits, such as a tariff-free environment and ease of travel. It highlights the impact of escalating trade tensions and potential changes to the 'one country, two systems' policy, which could affect Hong Kong's business environment. The discussion also covers the Hong Kong dollar's rise and the potential liquidity issues that could arise from defending its peg, emphasizing the economic challenges Hong Kong faces.

What has been a significant benefit of Hong Kong's special status over the past 20 years?

• High tariffs on imports

• Restricted technology imports

• Free environment with no tariffs

• Limited student visas

What recent event has raised concerns about the future of Hong Kong's business environment?

• A rise in local manufacturing

• A new trade agreement with the US

• A property developer withdrawing from a land bid

• Increased tourism from mainland China

What principle is at risk due to recent political developments in Hong Kong?

• One country, two systems

• One country, one system

• Two countries, one system

• Two countries, two systems

What is a major concern regarding the Hong Kong Monetary Authority's defense of the currency peg?

• Contraction of Hong Kong dollar liquidity

• Increase in foreign investments

• Rise in local employment

• Expansion of the technology sector

What risk do local banks in Hong Kong face due to potential liquidity issues?

• Liquidity issues due to exposure to local properties and Chinese corporates

• Higher interest rates

• Decreased demand for loans

• Increased foreign competition