skypine27,
$22K is pretty marginal! CX pays up to $27K? for SOs for the first 2 years. Then they get $55K? until 8 years in the company then you get around $67K then as a Captain(expat) you get over $80K. It is linked to some government housing indexes so changes from month to month.
I am one of those 'weird' banker types who live in a place that rents for $9,000 US a month! But nearly all my peers are also weird and rent places at a similar price level. Maybe Christep has a problem with people actually wanting to live somewhere nice and near to town. I was promised a standard equivalent to my home country when I joined and that is what I enjoy!
I may be telling you US types stuff you already know, but HKG is considered a 'high cost housing locality' by the IRS. Consequently the upper limit on your housing exclusion is around $114,300US for 2006. YOur Foreign Exempt Income for 2007 is $85,700 so on top of that you can add any housing expenses less the base rate($13,712). So you can add 12x$2,700 - $13,712=$18,688 to $85,700 meaning you can earn $104,388US before paying any US tax as it stands. You will be subject to up to 16% HKG flat tax on the non rental portion of the package.
The part of the deal that would be best improved is the rental allowance as it has no effect on your US world wide taxation given the very high limit on your IRS HKG housing exclusion!
clear as mud?