Discussion in 'Markets & Economies' started by MetalMajix, Dec 1, 2011.
A Chinese friend of mine told me last week that all her friends back in Hong Kong are starting to hoard yuans, maybe they know something?
I hear the same from my relatives and friends in Hong Kong. Many suggest buying Yuan, my parents say "oh ok" and then turn around to tell me to buy Gold instead
The logic is because Yuan has grown stronger relative to HKD for a while now so people may be expecting it to go further up against HKD.
RMB also has a higher interest rate than HKD, which I think is the main reason. AUD accounts in Hong Kong give around 2.5%, RMB not sure but definitely higher than HKD which is like 0.0000001%.
I know that the mortgage on one of the properties my family owns in HK is 0.8% and another is HIBOR - 0.2%.
When mortgages are that bad, you can imagine how bad letting your money sit in 'high interest rate' accounts are.
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