Bloomberg News

Ackman Says Hong Kong Likely Considers Pegging Currency to Yuan

September 14, 2011

Sept. 14 (Bloomberg) -- Bill Ackman, founder of hedge fund Pershing Square Capital Management LP, said he expects Hong Kong’s government to consider pegging its currency to the Chinese yuan and ending its U.S. dollar peg.

The link to the U.S. dollar is driving a real estate bubble in Hong Kong, and Chinese authorities would probably view a peg to the yuan favorably, he said today at a conference in New York organized by CNBC and Institutional Investor. Investors should buy one-year call options on the Hong Kong dollar, he said.

To contact the reporter on this story: Katherine Burton in New York at kburton@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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