Hong Kong’s Bankruptcy Filings Hit New High in April, HKMA Bought Nearly $7.5 Million USD to Defend Currency

Analysts: US-Hong Kong interest rate gap continues to widen, HIBOR might reach a cap rate

The entrance of the Hong Kong Monetary Authority (HKMA), July 10. Bilong/The Epoch Times

Individual bankruptcy filings jumped to nearly 1,000 in April, a new high in Hong Kong since May 2020. At the same time, the Hong Kong dollar suffered the largest sell order, and the Hong Kong Monetary Authority (HKMA) again intervened to buy nearly HK$5.9 billion (about $750 million).

Analysts believe that the interest rate spread between the United States and Hong Kong continues to widen. If the outflow of Hong Kong dollars can’t be stopped, the Hong Kong Interbank Offered Rate (HIBOR) may reach its cap of 2.5 percent.