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iShares MSCI Hong Kong Message Board

  • v318121 v318121 Sep 14, 2011 2:32 PM Flag

    Bill Ackman buys HONG KONG DOLLARS

    Bill Ackman Pershing Square Capital Management is buying HKD. In a way, believing in EWH. BUY BUY BUY. Any thought on this ?

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    • Just FYI, HKD is fully convertible. Depends on where you live, but you should be able to go down to a bank and directly convert USD for HKD. Assuming Ackman is right, if HK revalues their currency and allows it to rise against USD, you could take that HKD you got back to the bank and then exchange it - netting you more USD. If a bank doesn't have the HKD in stock, you could go to a forex exchange service - most international airports would have that. Of course, you'll pay a "service fee" or something, so it's probably not worth doing this unless you're exchanging a few thousand USD or more. One other alternative would be to literally take a trip to HK. When there, convert USD or use your ATM card to pull out HKD. Fly back with that cash in hand ... though you would have to be careful about taking it back with you ... maybe give some to your friend/spouse, as you don't want an inspector to see you flying off with hundreds of thousands in cash!

      • 1 Reply to mixxim
      • Do you know how to make this trade? Ackman mentions 3 opportunities:
        1. options
        2. leverage
        3. holding HKD instead of USD
        I think #1 is available only via investment banks, which are only interested in large investments (>1mm). I'm not interested in #3 (I want to be fully invested now, not holding cash). What does he mean by #2? Is he talking about buying on margin, i.e. borrowing money (and then paying interest)? Or is there a way to structure it so that I don't have to borrow, but that I still get leverage (e.g. a 5% move in the wrong direction wipes me out, but a 5% move in the right direction gets me a 100% increase?)

    • is there any way to play that through an eft on hong kong dollar?

      • 1 Reply to jockne
      • I don't think there is unless you play the futures. However, the way I see it is since HSI is based on HKD, if HKD goes up, so does the index. Just my thought. Also, it seems the EWH has bottom out for now, so I think it's a good short term play til end of year. The economy in Asia is different than US, reaction is much faster if the government sees it slow down too much. Especailly in HK, it's all about speculate

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