The Yuen has fallen greater than expected. It seems that China’s government is facing a huge price in fighting a defensive war. Feeble yuen affects stock markets, commodity prices and property bubbles in both Hong Kong and China. And due to the ‘one country, two systems’, Hong Kong is in the same boat. The fleeing and the devaluation of RMB not just have impacts on Hong Kong-owned factories in China, but also the Hong Kong property prices.