Forgive my ignorance, but I understand why the government does not repeg the HK$, perhaps 10 or 20% higher (while still keeping the US$ peg of course, not turning to the CNY).
Prices of properties would come down and prices would come down.
Since Hong Kong doesn't really manufacture anything, it should have only very marginal implications on exports and employment. Hong Kong would become more expensive for tourists, but reach tourists wouldn't care, and poor tourists... nobody is very interested in them. Besides, HK would still be very cheap compared to Europe, and tourism in Europe exists with very high prices.
So, I really don't understand why the government doesn't repeg. Can someone explain it to me? Is it just stubborness? It wants to prove it doesn't get pushed around by public opinion and international speculators?
In the meantime, I am changing my CNY to HK$.