Because most wealthy Chinese seem to think about RMB in terms of USD or Hong Kong dollars, it is the fear that any depreciation of the RMB against those two currencies (the Hong Kong dollar is pegged to the USD through a modified currency board) greater than the couple of percentage points interest rate differential would yield less than equivalent USD or Hong Kong dollar bonds. (carnegieendowment.org)
Other Asian equity markets have on average fallen modestly in recent months, led by falls in the Hong Kong market, where currency board arrangements mean that interest rates are expected to rise as the US Fed starts to tighten. (rba.gov.au)
As the audience was spilling out of the salesroom, reeling from the strong results, Lucy Mitchell - Innes, a former Sotheby's expert who is now a Manhattan dealer, noted that on the electronic currency board there, rubles were missing, perhaps a sign that Russian buyers were going to be less in evidence this season. (nytimes.com)