Crisis Management of the Hong Kong Government in the Asian Financial Crisis and the Subprime Crisis

Directory introduction ............................................. .. ................................... 1 ........... ................................... .. 3 Hong Kong government's response and assessment of crisis management ..... 4 Preventive measures for the financial crisis ............... ... ... ... ... ... ................................ 9 Conclusion and recommendations .............. .................................... Introduction In this article, we will first examine the causes of the Asian financial crisis and the subprime mortgage crisis I will briefly introduce it. result

Asian financial crisis Asia's lively economies collapsed one after another due to the Asian financial crisis in Thailand, Indonesia, South Korea, Malaysia and Hong Kong, the economy collapsed and the economy fell into recession. The currency plummeted and the Indonesian Rupiah was most severely affected and was exchanged for $ 1 to $ 1 to $ 1 from $ 1 to $ 1 before the crisis of January 1998. There were civil and political chaos in Indonesia. The impact of the crisis is not that serious, but Singapore is not escaping

After the transfer, Hong Kong was greatly affected by many crises. During the Asian financial crisis of 1997, the government was forced to use a large amount of foreign currency reserves to maintain the peg of Hong Kong dollars, and the outbreak of H5N1 avian flu and housing surplus improved. Following this, the SARS epidemic continued in 2003, during which the area experienced the worst economic depression. The political debate after the transfer of sovereign focused on the democratic development of this region and the central government's compliance with the principle of "one country two system". After the parliamentary final colonial democratic reforms were lifted after the transfer, the local government failed to successfully formulate national security laws according to Article 23 of the Basic Law.

Exchange rate: Hong Kong authorities will be forced to fail due to Hong Kong's influence in 1997-98 (after the Asian financial crisis), 2001-02 (the US-led global recession) and 2003 (caused by SARS) It was speculated. Depreciation of local currency is possible from 7.8 HK dollar to 1 US dollar fixed exchange rate. At the end of 2003, people have new confidence in the sustainability of Hong Kong's economic and monetary ties and replaced it. However, the Chinese government's attempt to cool down the mainland economy (which is reflected in the downturn in Hong Kong's stock price) and the failure of the regional bank to raise interest rates based on recent two US interest rate hikes lead to capital outflow, The government intervened again. To prevent the Hong Kong dollar rise. Throughout the forecast period, we expect the exchange rate to remain at HK $ 7.8.