Hang Seng thru 10,000

boddhisatva kbevans at panix.com
Mon Nov 2 01:31:04 PST 1998


C. Burford,

Your praise of Hong Kong is a little shocking coming from a socialist. The Hang Seng is a joke in which the government spends tax money to keep the portfolios of the wealthy from going into the toilet where they may very well belong. It's no surprise that the Hang Seng is going up, considering the huge move in the yen that position unwinding has caused, the reduced float thanks to government buying and the rules (what state are they currently in, anybody know?) against short-selling. While there is an argument that the government was simply keeping the Hang Seng from being overwhelmed by foreign money (which was short the market) there is no reason to suppose that the foreign money *had* to be short or that it could not have changed positions.

As far as the size of the capitalist class in Hong Kong, I would re-check the figures. On an island known for mansions that are literally plated in gold and a near fanatical devotion to the pursuit of wealth, I think the rich may have a bit more influence than you suspect.

peace



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