The Asian Financial Crisis Affecting the Hong Kong Financial Crisis
Asian Financial Crisis: The Struggle to Defend Hong Kong's Financial Stability. During my almost thirty-year career at the HKMA, I experienced the Asian financial crisis. - A financial crisis started in Thailand and spread across East Asia, wreaking havoc on the region's economies and leading to spillover effects. This article tells the story of the Asian financial crisis by answering four questions: What were the causes of the crisis, how did the crisis unfold, what were the consequences? The political uncertainty and financial contagion were an unmitigated disaster for a region that prided itself on the Asian Tiger economies it had created. The Asian financial crisis hit Hong Kong when both the Hong Kong dollar and the local stock and futures markets came under severe pressure. Familiarize yourself with the origins of the Asian financial crisis and determine how the contagion affected Hong Kong. To understand the role of · This article provides evidence on the nature and existence of contagion during global financial crises by examining nine equity crisis episodes. Hong Kong is facing a repeat financial crisis in Asia. China's unwillingness to tackle its debt crisis is forcing a rapid sell-off in stocks. People are worried: PST. Major financial crises in the 2001s include the Tequila Crisis, the Asian Crisis, the Russian Crisis and the Argentine Crisis of 2001. The more recent global crisis, caused by the US subprime crisis, caused more than 19. financial losses and it loss of millions of jobs. Even if market overreaction and herd behavior meant that the decline in exchange rates, asset prices and economic activity was more severe than justified by the initially weak economy, I am pleased to have the opportunity to talk to you about the impact of the Asian financial crisis on Hong Kong's banking sector. The Asian financial crisis is one year old this month, but this is an anniversary we don't want to celebrate. The crisis dates back to the end of May, when the Thai Baht came under heavy pressure. We consider the definition and measurement of contagion by analyzing the East Asian financial crisis in the stock markets of eight countries using dynamic conditional correlation DCC. With Thailand and Hong Kong as alternative sources of infection, a total of fourteen source-target pairs are analyzed. We define contagion as Malaysia, the Philippines and Indonesia also allowed their currencies to weaken significantly under market pressures, with Indonesia gradually entering a multi-faceted financial and political crisis. Hong Kong faced several major but unsuccessful speculative attacks on its currency's peg to the dollar. The first of these was the reason. Contagion in Asian Markets in Global Financial Turmoil, Applied Financial Economics, 20: 4, 345 354, First published: 08, iFirst To link to this article: DOI: 10.1080.