China must raise rates, and HK should internationalise its dollar: Xiao

Columbia University professor Xiao Geng says China’s only way out of the current boom/bust cycle is to raise interest rates, even though this means overcoming many vested interests and fears of a hard landing for the economy. Xiao, who is based in Beijing in a partnership with Tsinghua University, spoke at last week’s AsianInvestor 6th annual investment summit in Hong Kong (pictures of which can be found in this gallery). Almost as an aside, he argues that Hong Kongers are wrong…