SFC’s Wheatley warns of sovereign debt risk

Author: | Published: 2 Dec 2009

Overpriced sovereign debt could be the next burst bubble, according to Hong Kong’s top regulator, Martin Wheatley.

Speaking at a lunch organised by the American Chamber of Commerce (AmCham), Wheatley, the CEO of the Securities and Futures Commission, warned that even risk-aware investors could still get caught out.

A particular type of risk [relating to the financial crisis] is better understood, but the way the world reacted to Dubai last week suggests that pricing of sovereign risk is not right,” he said. “Sovereign debt might not be the best trade as...