Following a 0.25% cut with a 0.05% cut doesn't keep you in line. It makes you more of an arbitrage target. Home prices might be dropping in Hong Kong for other reasons. I've heard there are other events occurring. This isn't the popping of the bubble yet.
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Since Hong Kong's economy relies less on consumption than the US, it's hard to argue that a cut will help. https://www.theglobaleconomy.com/Hong-Kong/consumption_GDP/ … Besides, the raw problem is that people don't want to borrow. Otherwise, the RRR cuts this year would have significantly expanded the money supply.
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Even if those were in CNY, the nominal conversion of the CNY through the CNH into HKD should bring arbiteurs into the market to take advantage of any yield or inflation differences that are big enough to overcome currency hedging costs.
End of conversation
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