Say good bye to the HK dollar peg then.Original Post Deleted
Kyle Bass has been saying this for years and I don't agree with him. But if HK's role as an intermediary between China and the West will be under pressure for years to come.
If 1) China opens up towards the Western system, there will be less of a need for HK (think of JP Morgan salivating at the idea of getting into the Chinese asset mgmt business). If 2) China continues to play hardball, the West will see less of a need to play ball and focus on other markets or set up shop else (Singapore, etc.).
The third possibility is maintaining the status quo which is highly unlikely. So in the event of 1 or 2, where do you think Hong Kong is going to get its revenue from with a ever shrinking base?
Last edited by seirin; 21-09-2020 at 03:43 PM.
The broaden tax base ship has sailed for the foreeseable future. The whole MPF scheme is a bit of sham scheme to begin with anyways with the employers originally being able to use their contribution towards any mandatory severance pay.Original Post Deleted
It would be apt to include the government expenditures in this discussion because the MPF is really one of a few retirement safety nets anyone has in Hong Kong. I get the Keysian idea that the govt should step in during bad times and allowing people to tap the MPF could be a form of additional stimulus but that would be shifting the onus onto the private individual which is un-Keysian. What's one to do if an individual's MPF accounts are depleted? Beg the landlords for mercy?
MPF is such a waste of money... it should at least try to be more flexible like the 401k where you are allowed to withdraw money and pay taxes.