PRESENTING: The Full Story Of The "Hong Kong Miracle"

hong kong

Photo: US Navy

Hong Kong is growing… and fast.That’s part of the reason Pershing Square Management’s Bill Ackman made headlines yesterday when he announced a long bet on the Hong Kong dollar.

But Hong Kong is more than the subject of Ackman’s next big trade — it’s a booming economy with overwhelmingly accommodative monetary policy.

Ackman even goes so far as to call the region’s growth a “miracle.”

Hong Kong has a strong history of economic freedom strongly influenced by former British rule.

Its GDP statistics certainly reflect its success.

Hong Kong has recovered strongly from the recession of 2008-9...

With GDP beyond levels it reached before the crisis.

Unemployment is near all-time lows.

And a history of budget surpluses mean it's at no risk of suffering from a debt problem.

A trade surplus indicate that Hong Kong's services are in high demand.

Even the credit agencies think Hong Kong is a strong credit bet.

Its economy is also growing ever closer to China.

This relationship has accompanied an increase in financial transactions with China.

But Hong Kong currently shares the U.S.'s monetary policy...

Despite the fact that Hong Kong is in a very different economic situation.

Mounting inflation threatens to stall growth.

And with home prices becoming unfeasible for middle-class residents...

The government has grown increasingly unpopular.

It has tried and failed to address inflation with the current peg.

But all that could change -- and in a hurry.

So Ackman thinks...

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