Day 81 (27 August): Dim Sum in HK, Dinner in Guangzhou
This morning we met my friend Will from UCSD who has spent a lot of time living in Hong Kong for Dim Sum and enjoying seeing his new four-month-old baby Julian as well.
After that we boarded a ferry for Guangzhou in mainland China which took us up the Peral River Delta for several hours.
Observations:
1) Much of Hong Kong is built on reclaimed land including its tallest building. (My friend Will is going to be working in that building soon.)
2) Currency markets show in six-months parity between the Chinese Yuan and the Hong Kong Dollar at a level that means the Yuan would either have to appreciate further or the HK$ would depreciate. Given that both currencies are currently pegged to the US Dollar the markets seem to be predicting some big changes. The only way I could see this happening is if the Chinese government exercised some power over Hong Kong and forced it to devalue its currency, but that wouldn't happen so easily. Otherwise, China would have to revalue again in the next six months which also seems unlikely. Anyone else, have any thoughts on what's going on?
3) I knew that Guangzhou was one of the main places that China is shipping exports from and manufacturing them in but the number of containers you see along the edges of the Peral River Delta and on ships going down it is nonetheless very impressive when you get a chance to actually see it.
After that we boarded a ferry for Guangzhou in mainland China which took us up the Peral River Delta for several hours.
Observations:
1) Much of Hong Kong is built on reclaimed land including its tallest building. (My friend Will is going to be working in that building soon.)
2) Currency markets show in six-months parity between the Chinese Yuan and the Hong Kong Dollar at a level that means the Yuan would either have to appreciate further or the HK$ would depreciate. Given that both currencies are currently pegged to the US Dollar the markets seem to be predicting some big changes. The only way I could see this happening is if the Chinese government exercised some power over Hong Kong and forced it to devalue its currency, but that wouldn't happen so easily. Otherwise, China would have to revalue again in the next six months which also seems unlikely. Anyone else, have any thoughts on what's going on?
3) I knew that Guangzhou was one of the main places that China is shipping exports from and manufacturing them in but the number of containers you see along the edges of the Peral River Delta and on ships going down it is nonetheless very impressive when you get a chance to actually see it.
posted by Traveling Brian at 5:02 AM
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