The fiscal doubt in Hong Kong and Asia from mid-1997 to mid-1998 was caused in part by the Asian flu and the return of Hong Kong to the People's Republic of China. A large North American-based insurance company was faced with the decision of handling its Asian assets in light of this uncertainty, particularly the possible breakage of the peg between the Hong Kong dollar and the U.S. dollar.
As the vice-president of capital markets at Manulife Financial, he contemplated what strategy he would advocate to the senior executive group. He considered the concepts of fixed/pegged exchange rates and the usage of distinct strategies to handle the hazards, as well as the possible gain opportunities that may appear when a fixed/pegged exchange rate is under attack and may break.
Publication Date: 01/30/2001
This is just an excerpt. This case is about Finance
