Hong Kong rates hit 2008 highs, HK$ rallies before jumbo InBev IPO

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Hong Kong rates hit 2008 highs, HK$ rallies before jumbo InBev IPO
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The Hong Kong Interbank Offered Rate (HIBOR) rose across the curve on Thursday, ...

HONG KONG - The Hong Kong Interbank Offered Rate rose across the curve on Thursday, with investors scrambling for cash ahead of the world’s biggest initial public offering of the year at a time of tight liquidity in the domestic market.

On Thursday, the one-month and two-week tenors shot up to 2.99% and 3.53%, respectively, their highest since October 2008, while two-month and three-month HIBOR reached their highest levels since November of the same year. Analysts from Bank of America Merrill Lynch estimated in May that Hong Kong-listed Chinese companies will need to pay $55 billion of dividends this year, mostly in June and July.to its strongest since May 2017. The currency was seen at 7.7893 per dollar, up 0.1% on the day. It is pegged to the U.S. dollar at a tight range of 7.75 to 7.85.

But that gap by-and-large closed in June. The Hong Kong dollar rose 0.33% against the greenback that month, its largest monthly gains since September 2008.

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