Hong Kong's fortunes linked to low rates in US

First State's Susie Rippingall believes Hong Kong could experience an economic boom if interest rates remain low in the US.

The manager of the £158m Scottish Oriental Smaller Companies trust says although in general Asian central banks are raising interest rates, Hong Kong cannot because of its currency’s peg to the US dollar. “Hong Kong is an interesting scenario. As we look to the US, the likelihood of a rate rise is being pushed back further to the end of next year,” she says. “If that is the case, then we could see negative real interest rates in Hong Kong – similar to what happened in the first part of the 1990s. This could lead to rapid growth in the economy, and we have already seen the Government r...