If Taiwan continues to take unilateral action, pressure will be piled upon it, even from the U.S.. |
The strong domestic economy should cushion the impact of an anticipated slowdown in Hong Kong's trade growth this year. |
The widening rate gap between the U.S. and HK in the later part of 2006 will likely be accompanied by a strong HK dollar. |
We don't think there will be immediate conflict between Taiwan and mainland China, but it will put increasing pressure on Taiwan against declaring independence. |