NEWS

A major battle in the U.S.-China financial cold war could be fought over a decades-old currency peg. Money is whatever people will use to swap, store, and measure value. Since 1846, Hong Kong residents have relied on notes issued by commercial banks. And for almost four decades, they have been safe in the knowledge that 78 units of the local currency would always fetch 10 U.S. dollars. That certainty has spawned a globally competitive financial center.    But change is on its way. The people of Hong Kong may be asked to try out a new kind of money. Whether they bite could decide the outcome of a great superpower rivalry.  A digital renminbi trial will start in Hong Kong, according to China’s Commerce Ministry,...

PRIVATE & INTERNATIONAL BANKING NEWS 2020

Wealthy Hong Kong investors have moved as much as ten percent of physical gold holdings away from home, and to centers including Singapore and Switzerland, the «Financial Times» (behind paywall) reported on Friday, citing several gold specialists. The move follows a controversial Chinese security law for the territory last month, which has roiled finance as well.   «Many clients now perceive Hong Kong as riskier than other jurisdictions,» Joshua Rotbart, head of J Rotbart & Co, told the outlet. Based in Hong Kong, the company stores and trades gold. The precious metal recently rallied past $2,000 per ounce on pandemic and inflation fears and is...

CORPORATE & FIDUCIARY NEWS 2020