The reason why the Hong Kong dollar has risen so high, market participants believe that behind the strong exchange rate of the Hong Kong dollar, on the one hand, the lively IPO in the Hong Kong stock market is constantly attracting capital inflows; On the other hand, the spread between the Hong Kong dollar and the US dollar has widened again, opening up space for arbitrage activities and constantly promoting the appreciation of the Hong Kong dollar.
Hong Kong dollar is the legal tender of Hong Kong. According to the Basic Law of Hong Kong and the Sino-British Joint Declaration, Hong Kong's autonomy includes the right to issue its own currency. The linked exchange rate system linking the issuance of Hong Kong dollars to the US dollar was established. The US dollars held by the Exchange Fund provide support for the stability of Hong Kong dollar banknotes. Hong Kong dollar has become one of the currencies with sound system and stable value.
Mainly related to Hong Kong's linked exchange rate system. Because the Hong Kong dollar is pegged to the US dollar, the RMB will certainly appreciate against the US dollar. As long as the United States has been holding down the appreciation of the renminbi, the Hong Kong dollar will inevitably fall along with the US dollar.