Hong Kong Monetary Authority

Hong Kong Monetary Authority: The inflow is boosting demand for the Hong Kong dollar after companies bought the currency in July for dividend payments and mergers and acquisitions, Hong Kong Monetary Authority Chief Executive Norman Chan said yesterday, according to Business Week. Investors and fund managers seem to be less pessimistic on China and hence are adjusting their asset allocation, Chan said at a briefing and Hong Kong is luring an inflow of funds as investors grow more optimistic about Chinas economy and buy mainland-related shares, the citys central bank said. Demand for the citys currency has spurred the de facto central bank, known as to inject $9.7 billion since July 1 to maintain its peg to the U.S. dollar. Signs Chinas economy is improving drove Hong Kongs main equity index 6.8 percent higher in July, the biggest monthly gain since September 2012. (news.financializer.com). As reported in the news.