Thank you Mr. Wong for the very informative analysis. I have a question, would it not be possible to de-peg from the USD and peg it to a basket of weighted currency. In this way, absolute reliance of USD can be withdrawn and by careful manipulation at the initial stage of the de-peg, it may be possible to avoid a big disruption to the stability of the HKD.
The eventual decoupling of the Hong Kong currency from the US currency is inevitable and will occur in due course. Several factors will contribute to this shift. Firstly, the ongoing geopolitical tensions between China and the US will negatively affect Hong Kong's position as a global financial hub. This impact has been noticeable since the 2019 Hong Kong protests, which resulted in legal changes, capital outflows, and a drain of talented individuals from the region.
