Billionaire Bill Ackman said that his hedge fund Pershing Square Capital Management has taken a significant short position against the Hong Kong dollar and expects the currency’s peg to the U.S. dollar to break soon.
Ackman shared Richard Cookson’s article, “Pressure on the Honk Kong Dollar Peg Keeps Building,” published on Bloomberg that talked about the peg becoming untenable and may need to be abandoned amid rising pressure in the Asian financial center. Cookson said that this was primarily owing to China’s political interference and hawkish policies of the Federal Reserve that would have adverse effects on Hong Kong’s economy, which is reeling under surging debt, and falling asset prices.
