Hong Kong Is Facing a Repeat of 1998 Asia Financial Crisis
As the Hang Seng Index selloff deepens, bankers and traders are preparing for the worst.
This does not feel like 2008 when the Global Financial Crisis hit
but 1998 — in the midst of the Asia Financial Crisis — a few people who have been around long enough lamented to me recently. The late 1990s crisis started with Thailand.
But if another one erupts, China will be its root cause, and Hong Kong the epicenter.
January is not over yet, and the Hang Seng Index already has slumped by over 10%, making it the worst-performing among major global indexes.
People nowadays question the city’s viability as a financial center, reminiscent of the prevailing sentiment in the aftermath of the 1997 handover.
Bloomberg 23 januari 2024
China Moves to Boost Bank Lending
the central bank would lower the amount of reserves banks need to hold against their deposits starting Feb. 5, freeing up around 1 trillion Chinese yuan, equivalent to $139 billion, that can then be funneled into new loans.
WSJ 24 January 2024
Asian financial crisis at IntCom
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