The Hong Kong dollar (HKD) has experienced notable volatility recently, influenced by both market interventions and shifts in investor behavior. A substantial inflow of USDHKD occurred as investors oversubscribed by a factor of 55, pushing the currency toward the lower end of its trading band. However, with the commencement of trading in Contemporary Amperex Technology Co. Limited (CATL), there has been an outflow of funds, leading to a rally in the USDHKD exchange rate. Concurrently, Hong Kong's key interbank borrowing cost, the one-month HIBOR, has fallen below 1% for the first time since 2022, reflecting a slump following foreign-exchange intervention by the city's authorities. This decline in local interest rates has encouraged traders to borrow more HKD to finance carry trades, contributing to bearish sentiment against the local dollar. The HKD has edged closer to the weak end of its trading range amid these conditions, with reports indicating that the currency is being sold off this month. Additionally, the Hong Kong monetary base is surging, with significant liquidity entering the market. In the broader context, China is observing deposit migration amid falling rates, with wealth management product scales reaching new highs and increased interest in Hong Kong equity strategies.