Hong Kong chief executive considers RMB linkage

Hong Kong Chief Executive Donald Tsang said the territory could consider linking its currency to the renminbi once the mainland currency became fully convertible, the Wall Street Journal reported. “When that happens, and I don’t know when, I’m sure Hong Kong would think about … currency linkage with China,” Tsang said at an investment conference in Hong Kong Tuesday. Tsang noted, however, that such a move would be years away. Hong Kong’s currency has been pegged to the US dollar since 1983. Robust demand for the Hong Kong dollar has forced the government to intervene repeatedly and push the currency lower against the US dollar. Tsang’s comments are a rare admission by the Hong Kong government that it could abandon its US dollar peg, but analysts said it would be at least five to 10 years before the renminbi is fully convertible.