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this is CNY to US$ exch.chn this is HKD to US$ while below are the log differenced of both graph above ret.exch ret.exch

you can see tha apparent similarity on the mid of graph
i thought that they were managed by different entity as CNY are managed by People Bank of China (PBC, Central Bank of China) and HKD by Hongkong Monetary Authority CNY exch rate is a managed float
while HKD is pegged
1. were the similarity induced by the same response to the same crisis?
2. or is it only coincidence?
3. or was it coordinated between financial authority in China and Hongkong?
4. or the way of how HK pegged HKD similar to the way how China managed float on CNY?
5. what are the implication of it?

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Incorrect, a) returns in USDCNY are on average much more volatile than returns in USDHKD as you can see from your own charts, b) you can also see that USDCNY reflects more negative than positive returns while that is not the case for USDHKD. – Matt Wolf Nov 5 '13 at 4:56
you're right, but what about the middle part of the chart when it looks like the volatility are being suppressed? – Firhat Nawfan H. Nov 5 '13 at 12:19
Most likely it is related to low dollar volatility during that time period which impacted both USDCNY and USDHKD rates. – Matt Wolf Nov 5 '13 at 13:54

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