Core Viewpoint - The Hong Kong Monetary Authority (HKMA) has activated the "weak side convertibility guarantee" at a rate of 7.85, indicating increased pressure on the Hong Kong dollar and the need for intervention in the currency market [1] Group 1: Currency Intervention - On August 14, after the New York trading session, the HKMA sold 3.376 billion HKD to the market, buying USD in return [1] - The last instance of triggering the 7.85 weak side convertibility guarantee occurred on August 13, where the HKMA absorbed 7.065 billion HKD [1] - Since June, the HKMA has intervened 12 times, absorbing a total of 119.97 billion HKD, which is equivalent to 92.7% of the hot money inflow in May [1] Group 2: Market Impact - The bank system's aggregate balance will decrease to 53.716 billion HKD on August 15 due to these interventions [1]

Core Viewpoint - The Hong Kong dollar has weakened, triggering the weak-side convertibility guarantee at 7.85 per US dollar, leading to the Hong Kong Monetary Authority (HKMA) intervening in the market by selling US dollars and buying Hong Kong dollars [1] Group 1: Currency Intervention - On August 13, after the New York trading session, the HKMA sold 70.65 billion HKD to the market, resulting in a decrease of the banking system's balance to 570.91 billion HKD on August 14 [1] - This marks the 11th time since June that the HKMA has intervened, accumulating a total of 1,165.94 billion HKD, which is approximately 90% of the capital inflow seen in May [1] Group 2: Historical Context - The last time the weak-side convertibility guarantee was triggered was on August 6, when the HKMA absorbed 84.39 billion HKD [1] - In early May, the Hong Kong dollar had triggered the strong-side convertibility guarantee multiple times, with a total inflow of 1,294 billion HKD, indicating a significant shift in the currency's strength over the past two months [1]

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) has intervened in the currency market to stabilize the Hong Kong dollar, which has triggered the weak-side Convertibility Undertaking at 7.85 against the US dollar [1] Group 1: Currency Intervention - On August 6, the HKMA bought HKD 84.39 billion in the market, marking its fourth intervention within a week to support the local currency [1] - The total amount bought by the HKMA during these four operations reached HKD 223.26 billion, aiming to maintain the exchange rate within the 7.75-7.85 range against the US dollar [1] - The HKMA's actions were prompted by continuous capital outflows from the stock market and persistently low local interest rates [1] Group 2: Market Impact - Following the interventions, the banking system's liquidity is expected to decrease to HKD 640.62 billion by August 8 [1] - The HKMA's previous interventions included buying HKD 64.29 billion on August 5, HKD 35.33 billion on August 1, and HKD 39.25 billion on July 31 [1]

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) activated the "weak-side convertibility guarantee" under the linked exchange rate system, selling USD and buying HKD worth 94.2 billion HKD, as the HKD weakened to 7.85 HKD per USD during the New York trading session on June 26 [1] Group 1 - The last occurrence of the "weak-side convertibility guarantee" was in May 2023, while the "strong-side convertibility guarantee" was triggered on May 3, 2023, when the HKD reached 7.75 HKD per USD [1] - HKMA's President, Eddie Yue, noted that the HKD had previously seen a capital inflow of 129.4 billion HKD due to the "strong-side convertibility guarantee" in May, indicating a shift in market dynamics [1] - Factors contributing to the HKD's weakening include reduced demand for HKD due to the end of the dividend payout season, non-local companies converting HKD from IPOs or bond issuances back to their currencies, and the completion of half-year funding needs [1] Group 2 - The HKMA emphasizes the importance of maintaining HKD exchange rate stability as part of its monetary policy objectives, given Hong Kong's open economy and lack of foreign exchange controls [2] - The HKMA provides convertibility guarantees, committing to sell HKD at the "strong-side" level of 7.75 HKD per USD and buy HKD at the "weak-side" level of 7.85 HKD per USD upon banks' requests [2] - Eddie Yue advised caution in managing interest rate and market risks, indicating that the HKD may trigger the "weak-side convertibility guarantee" again in the future as bank reserves decrease and HKD interbank rates may rise [2]

Group 1 - The Hong Kong Monetary Authority (HKMA) has activated the "strong-side convertibility guarantee" for the Hong Kong dollar three times recently, indicating a stable and orderly market despite these interventions [1] - On May 3, the HKMA bought US dollars and sold a total of 46.539 billion HKD after the Hong Kong dollar hit the 7.75 HKD to 1 USD threshold [1] - Cumulatively, the HKMA has injected 116.6 billion HKD into the market, raising the banking system's balance to nearly 161.4 billion HKD [1] Group 2 - The first quarter of this year saw active financing activities in the Hong Kong market, highlighting its attractiveness [2] - The Hong Kong Stock Exchange ranked among the top five globally in terms of new stock market financing, with the largest two refinancing issuances since April 2021 [2] - As of the second quarter, there are 120 new stock listing applications currently being processed on the Hong Kong Stock Exchange [2]

Core Points - The Hong Kong Monetary Authority (HKMA) injected an additional HKD 60.543 billion today, bringing the total injections to HKD 116.614 billion [1] - The HKMA's actions are a response to the prolonged weakness of the US dollar and the Hong Kong dollar's exchange rate reaching the strong-side convertibility guarantee of 7.75 against the US dollar [1] - Since last Friday's US stock market close, the HKMA has undertaken measures to absorb USD sell orders amounting to USD 7.812 billion, resulting in an increase in the banking system's balance to HKD 161.384 billion [1] Summary by Category Monetary Policy - The HKMA has conducted three rounds of capital injections totaling HKD 116.614 billion in response to market conditions [1] - The latest injection of HKD 60.543 billion is part of a strategy to maintain the stability of the Hong Kong dollar under the linked exchange rate system [1] Market Impact - The banking system's balance is expected to rise to HKD 161.384 billion following the recent capital injections [1] - The HKMA's actions indicate a proactive approach to managing currency stability amid fluctuations in the US dollar [1]

Group 1 - Argentina has abandoned its fixed exchange rate mechanism, allowing the Argentine peso to float within a range [1]