Hong Kong, once the most developed city in Asia, is starting to see cracks in this city nation.

Hong Kong Dollar, HKD has been trading at the weak end of the band for a prolonged period. It usually means funds are flowing out and the Hong Kong Monetary Authority is defending the currency peg.

Foreign Exchange Reserve is also falling fast as Hong Kong Monetary Authority may be using its reserve to defend the peg.

Hang Seng Index has plunged despite trading at a very low valuation. Also, it has broken a 30-year long-term up-trend line.

House Prices in Hong Kong have risen to a very unaffordable level for its people. The high property prices have distorted the economy in various ways and brought instability to society.

Interest Rate is rising fast to catch up with the Fed's pace. With money flowing out and the cost of capital rising fast, no asset prices can survive.