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LATEST IN HONG KONG [22 OCT 2012]

Massive capital inflow into Hong Kong led the
HK Monetary Authority to intervene by buying
US$603 million at HK$7.75 per US dollar on 20
Oct 2012 to defend the currency peg.


QE3-fuelled capital inflows spark fears over
inflation [25 oct 2012]



LATEST IN HONG KONG [27 OCT 2012]
Foreign buyers pay 15% tax upon purchase
Resale tax on property
20% for those selling within 6 months,
15% for resale within a year, and
10% for resale within 12 to 36 months.



Update on U.S. Economy – as of last week
Quantitative Easing 3 (QE3)

Federal Reserve will print US$40 billion of new
money every month to buy back mortgage backed security from banks
Near 0% Interest rate until at least mid-2015
But expected to remain low after economy
strengthens beyond 2015 (3 Oct 2012)

Aims: JOB GROWTH, ASSET APPRECIATION,
BOOST CONFIDENCE – encourage home
buying, revive housing market & job market by
reducing long-term mortgage rateUpdate on U.S. Economy –

Difference between QE3 and previous QE
-Will not stop until unemployment problem is
significantly improved / interest rate will
remain low beyond 2015
-Won’t stop even if inflation in US over 2%
US GDP up 2% in Q3 2012, better than 1.3% in
Q2 [27 Oct 2012]
A pace in excess of 2.5% is needed over
several quarters to make sure jobless rate is
cut significantly

Bank of Japan will extend its asset-purchasing
scheme by 10 trillion yen (S$158 billion)
-Basically make Yen weaker
-Make Japan export more competitive
-The beginning of competitive devaluation of
currencies

BOJ version of QE will end in end 2013

Update on Global economy – Dec 2012