Shorting Hong Kong's Dollar Has Turned Unprofitable

Shorting Hong Kong's Dollar Has Turned Unprofitable

Assessment

Interactive Video

Business

University

Hard

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The video discusses the popularity of shorting the Hong Kong dollar due to low funding costs since 2017. However, recent changes have increased these costs, making the strategy less profitable. Factors such as banks hoarding cash, corporations paying dividends, and political unrest in Hong Kong have contributed to this surge. The video predicts that funding costs will remain high in the near term due to ongoing political uncertainty and corporate financial activities. Additionally, upcoming IPOs, like Alibaba's, may further impact these costs.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What impact do protests in Hong Kong have on the financial situation discussed?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What predictions are made regarding the funding costs in the near future?

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