With the promotion of the large -scale dividend of listed companies in Hong Kong, the rise in the Hong Kong dollar against the US dollar is expected to reach its peak this month.
Bloomberg reported that the Hong Kong dollar has risen in the four months as of the end of June, setting the longest rising record since 2020.Because July is the peak season for Hong Kong listed companies this year, the rise may continue.
Jiang Jing, an economist of Overseas Chinese Bank (Hong Kong), said that the continuous southbound capital inflow and dividend distribution may maintain the Hong Kong dollar exchange rate and provide some support for the Hong Kong dollar in the short term.She said that in the absence of loan demand prospects, the Hong Kong dollar may be softened after dividends.
Bloomberg's data shows that companies such as China Construction Bank and Industrial and Commercial Bank of China will distribute dividends in the late 2023 in July.Data show that the total dividend of the standard Hang Seng Index composition shares will reach a new high of five years in 2024.
Among the companies listed on the Hong Kong Stock Exchange, more than half of the company headquarters is located in mainland China, which means that some of the funds required to pay dividends may be remitted back to Hong Kong.This will boost the inflow of funds and support the Hong Kong dollar.
Hong Kong dollars are among the best in the Asian currency ranking this year because it benefits from the exchange rate linked to the US dollar. Under the uncertainty of the Federal Reserve's interest rate cuts, the US dollar is still strong.
