HK says loose global policy fuelling asset bubbles - News

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HK says loose global policy fuelling asset bubbles

By: AFX | 16 Nov 2009 | 03:58 AM ET

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SINGAPORE, Nov 16 (Reuters) - Loose monetary policies around the world are creating asset bubbles in emerging markets, Hong Kong Chief Executive Donald Tsang said on Monday. "Today, with zero, or near zero interest rate policies, we see a repeat of rapid carry trades and leveraged capital flows that are once again creating asset bubbles in the emerging markets," said Tsang in a speech in Singapore. Prices of mass market residential property in Hong Kong have surged more than 20 percent this year, despite the economic downturn. Luxury property prices have soared more than 40 percent, benefiting from excess liquidity globally and an influx of cash from newly-rich mainland Chinese. (Reporting by Nopporn Wong-Anan and Saeed Azhar; Editing by Neil Chatterjee) Keywords: HONGKONG CEO/ (neil.chatterjee@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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