HONG KONG — Global investors rattled by Donald Trump’s America are turning to Hong Kong for a sweet deal: borrowing Hong Kong dollars at virtually zero cost and receiving a guaranteed return of more than 4%, based on U.S. overnight lending rates.
The so-called carry trade, which came under the spotlight over the past month as borrowing costs in Hong Kong plunged to nearly zero in a matter of days, highlights just how quickly the Asian financial hub is bouncing back from its recent slump, as money pours into the former British colony and demand for U.S. assets falls in Trump’s second term.
