The investment community has been quite disappointed. Yet in spite of recent improvements, we would like to see a more approachable policy arm. We should start looking at ways to bring in foreign liquidity. There have been a lot of measures aimed at improving domestic liquidity. They are not wrong, but with the contraction in economic activity and banks being extremely cautious, the lending of money has plunged.
Liquidity is down to very low levels.
If we provide a more stable operating environment and maintain the currency board system, the high interest rates will be with us for some time. But maybe it will improve the market mechanisms and we could use the high rates as an incentive for foreign investors - and bank on other factors such as the continuation of the fair rule of law, for example. Then high interest rates would attract foreign liquidity. This of course is not going to be the scenario for next week or next month. The worst thing would be for Hong Kong to follow in the footsteps of our neighbors and go into denial, which would be totally self-defeating.