20-05-2025
US Downgrade Sounds Alarm for Hong Kong Funds Holding Treasuries
Hong Kong's pension fund managers are sounding the alarm of potential forced selling on their Treasury holdings after a downgrade by Moody's Ratings of US debt, according to people familiar with the matter.
Funds operating under the city's HK$1.3 trillion ($166 billion) Mandatory Provident Fund system are only allowed to invest over 10% of their assets in Treasuries if the US has a AAA or equivalent rating from an approved agency. After last week's cut by Moody's, the only remaining such score is from Japan's Rating & Investment Information Inc.
