BusinessHong Kong Investors Find US Treasuries Attractive Amid Fed Rate Hikes
Hong Kong investors are increasingly buying US Treasuries as the Federal Reserve's aggressive 525-basis-point rate hikes since March 2022 have caused home prices and the Hang Seng Index to drop significantly. The city's Mandatory Provident Fund, with HK$1.7 trillion in assets, suffered its worst loss since the Global Financial Crisis. US sovereign debt offers yields above 5%, minimal currency risk, no capital gains tax, and protection against inflation tied to Hong Kong's deflationary economy.
Mint Markets··Hong Kong


