pushed the Hong Kong dollar

assets via carry trades. On the other hand, according to EPFR data, long-term funds, represented by overseas active equity funds, have continued to show an outflow trend. Due to the previous trend of stronger net inflows of Mainland capital compared to the outflows of both local and foreign capital from Hong Kong, under the linked exchange rate system, the inflow of Mainland capital pushed the Hong Kong dollar exchange rate to the strong-side convertibility level. As a result, the Hong Kong Monetary Authority (HKMA) was forced to sell Hong Kong dollars and buy U.S. dollars to release liquidity, causing Hong Kong dollar interest rates to drop significantly. Hong Kong adopts a linked exchange rate system pegged to the U.S. dollar, with a trading band set between HKD 7.75 and 7.85 per USD 1. When the Hong Kong dollar appreciates and hits the strong-side ดูหนัง24