The portfolio manager marking Hong Kong equities after October 22 has a 3% fall to absorb, with the Hang Seng closing at 22,935 in The Wang Report’s money panel (the funding bill gets its own calculation).

So the bank treasury desk’s price matters next. Our panel put one-month HIBOR at 2.75% on October 22. A lower equity valuation and more expensive borrowing would compound the pressure on a financed holding. The equity fall alone establishes only the markdown.

The same panel supplies little evidence of a net drain in the aggregate balance between September 9 and October 22: HK$54.0 billion at the earlier observation, HK$54.1 billion at the later one. Those endpoints cannot show what funding did around the sell-off. They cannot establish where equity-sale proceeds went, either.

The HKMA’s Exchange Fund Bills tender results dated October 20 and its three-year government-bond reopening results dated October 21 precede the fall. Neither supplies the subsequent funding reading that changes this calculation.

Subsequent HIBOR and aggregate-balance readings are the next check. A rise in the borrowing benchmark would add funding pressure to the portfolio’s loss; a fall in the aggregate balance would supply evidence of a drain after the October 22 observation.