The Different Fate of Thailand and Hong Kong during 1997 Asian Financial Crisis

The Different Fate of Thailand and Hong Kong during 1997 Asian Financial Crisis

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The Different Fate of Thailand and Hong Kong During 1997 Asian Financial Crisis
The 1997 Asian financial crisis was a disaster that obsessed much of Southeast Asian countries. The financial crisis began in July 1997, and rose to worldwide economic meltdown due to financial contagion. Thailand, Indonesia and South Korea were the most affected by the financial crisis. Hong Kong, Malaysia, and the Philippines also had abundant negative effects by the financial disaster. China, Singapore, and Vietnam were less affected, however, they also suffered from the crisis, which leads the citizens lost their faith of the economy at that period.
Speculation to the baht currency at what level, what the future will present situation to judge? Soros thinks the baht's exchange rate is high, why? This and the Thai baht peg to the dollar exchange rate regime and Thailand when the economic environment are closely related. Foreign exchange transactions, the most important thing is that the correct projections for the shape of the foreign exchange rate, and a correct prediction analysis of the factors that have concluded that depend on the impact of foreign exchange. There are many factors that cause the foreign exchange market fluctuations. For example, when the European central bank raised rates, the euro will appear a certain degree of rebound. When Japan released economic data showed that its economy has not significantly improved, most the yen will fall. Superficially, factors affecting exchange rates seem to be quite complicated, but in the aggregate, and the course of the exchange rate is determined by supply and demand.
Southeast Asia financial crisis started in Thailand currency crisis, and Thailand currency crisis has been brewing as early ...


... middle of paper ...


...currency crisis to further expand, and at the same time to uphold and protect Hong Kong's linked exchange rate system.
The Hong Kong government eventually bought stocks in different companies, which were worth about $15 billion in total, and became the largest shareholder of some Hong Kong MNCs, in the end of August. In 1999, the government began to sell these shares by launching the Tracker Fund of Hong Kong. The profit was about $ 4 billion.


References
1. Bayani Cruz, We will hold on to blue-chip shares: Tsang, The Standard, 29 August 1998.
2. Columbia.edu. A Good Look at the thai Financial Crisis in 1997-98. 28 July 2013.
3. Haider A. Khan, Global Markets and Financial Crises in Asia, University of Denver 2004
4. Liebhold, David. Thailand's Scapegoat? Time.com. 27 December 1999.
5. http://www.adb.org/sites/default/files/KI/2003/rt29.pdf







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