HK anger over drop in credit rating
Saturday 21 February 1998
Sir Donald Tsang, Hong Kong's financial secretary, described the move as "unfair, unreal and improper". He accused Moody's of simply including Hong Kong "in the same broad brush of all the other countries affected by the currency crises", ignoring the stability of the Hong Kong dollar.
Moody's said the downgrade resulted from increased volatility in East Asian markets, which was affecting the Hong Kong environment. However, the agency noted that the territory's "fiscal situation and regulatory environment remain sound".
Short-term debt of the two Hong Kong railway corporations, previously blue-chip rated borrowers, has been downgraded from Prime-1 to Prime- 2. The outlook for foreign currency borrowings of these two institutions and other prime Hong Kong borrowers has also been downgraded from stable to negative.
Although there was considerable surprise at these revaluations, investors seemed less concerned than the Hong Kong government. The stock market inched marginally upwards after a day of lacklustre trading. The benchmark Hang Seng Index rose 0.6 per cent to 10,551.70. Stocks likely to be affected by the Moody's re-rating showed no sign of being marked down.
Moody's also raised some eyebrows by reclassifying the outlook for China's bonds, notes and bank deposits from stable to negative.
Meanwhile, Japan's ruling Liberal Democratic Party has dashed hopes by producing an economic stimulus package which fell far short of expectations.
The package, issued yesterday, contained neither the tax cutting or increased government spending measures which were anticipated by the financial markets. The stock market responded apathetically, ending the day up less than 1 per cent.
The package focused on deregulation measures and a clutch of soft loans to troubled East Asian countries.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Now we know whose fault it is if you end up being murdered in Thailand
- 5 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Benefits 'smart cards' plan revealed by Iain Duncan Smith to stop claimants spending welfare money on alcohol
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...