Eddie Yue: Reduced HKD demand may trigger weak-side guarantee

Hong Kong Monetary Authority Chief Executive Eddie Yue said short-term HKD interest rates are driven by the supply and demand for the Hong Kong dollar, and a reduction in demand for the currency may trigger the weak-side convertibility undertaking. He noted that Hong Kong stock turnover has fallen back from its mid-year high, the impact of earlier large-scale fundraising activities has faded, and periods of relatively strong funding demand such as quarter-end and dividend payments by listed companies have just passed, easing related demand for the Hong Kong dollar, which is the reason behind the weakening of the HKD exchange rate.