Asia Pacific News
LAST UPDATE: June 12, 2025
Hong Kong Funds Plan to Cut Treasuries If US Loses AAA Score
Pension fund managers in Hong Kong are preparing contingency plans to sell portions of their U.S. Treasury holdings within three months if U.S. credit ratings drop below AAA.
Insight
Hong Kong’s MPF (Mandatory Provident Fund) is limiting U.S. Treasuries exposure to 10% in the event of a downgrade, highlighting growing regional concern over U.S. fiscal trajectory and the global implications of a ratings cut.
Trump is receptive to contacts with North Korean leader, White House says
White House press secretary Karoline Leavitt stated President Trump remains open to correspondence with Kim Jong Un, recalling their previous summits and “beautiful” letters.
Insight
Trump’s readiness to re-engage reflects his preference for personal diplomacy; however, experts warn that North Korea’s strengthened nuclear capabilities and alliances make renewed talks riskier and less productive than before.
