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Affected countries
Indonesia, South Korea and Thailand are the countries most affected by the financial turmoil. Laos, Malaysia, the Philippines and Hong Kong have also been affected. People's Republic of China (PRC), Singapore and Taiwan Province provinces are relatively lightly affected (China implemented macro-control before the financial turmoil, which reduced losses), but Taiwan Province Province has also been affected in essence, so it will face the threat of "local financial turmoil" in the future. However, Japan is in its own long-term economic predicament after the collapse of the bubble economy, and it is not greatly affected by the financial turmoil.
pass by
1At the end of 1994, RMB depreciated by 45%, and funds from various countries began to pour into China for investment, and funds from East Asian countries began to lose blood.
Southeast Asia
From 65438 to 0997, Thailand's economy was weak, and many Southeast Asian countries such as Thailand, Malaysia and South Korea relied on short-term and medium-term foreign debts for a long time to maintain the balance of payments. The exchange rate is very high, and most countries maintain a fixed or linked exchange rate with the US dollar or a basket of currencies, which provides good hunting opportunities for international speculative funds. Quantum Fund headed by george soros, a famous American speculator, took advantage of the situation to enter Thailand, starting with a large number of short selling of Thai baht, forcing Thailand to abandon its long-term fixed exchange rate pegged to the US dollar and float freely, thus triggering an unprecedented crisis in Thailand's financial market. After that, the crisis quickly spread to all countries and regions with freely convertible currencies in Southeast Asia, and the Hong Kong dollar in Hong Kong became the most expensive currency in Asia.
Hong Kong
1997 10 When Soros swept Southeast Asia with funds, international speculators headed by Soros turned their attention to China and Hongkong. Although Hong Kong was not as bad as Thailand at that time, there were many bubbles in real estate and stock market. Finally, Jones and Soros chose Hong Kong as the main battlefield for the second wave of shocks. They thought that maintaining the linked exchange rate system was too expensive for the Hong Kong SAR government to survive, so they began to actively study it and quickly launched an offensive. In June, 1997, 1 1, hedge funds began to attack Hong Kong dollars for more than ten months. Macro hedge funds joined hands to create markets in foreign exchange, stock market and futures market, and launched a three-dimensional attack on the Hong Kong dollar in all directions: first, they sold a large number of cash Hong Kong dollars for US dollars, while shorting Hong Kong stocks in the stock market, and then sold a large number of futures contracts in the Hang Seng Index futures market. However, under the resistance of the Hong Kong SAR Government, the three attacks did not destroy the Hong Kong dollar.
1On August 5th, 998, with the cooperation of the U.S. stock market crash and the yen exchange rate crash, hedge funds began to launch the fourth impact on the Hong Kong dollar. A battle that almost caused the collapse of Hong Kong's financial market and linked exchange rate system began. Quantum Fund and Tiger Fund launched an offensive and began to speculate in Hong Kong dollars. At first, they borrowed a lot of Hong Kong dollars from banks, sold them in the market, exchanged them for dollars to earn interest, and sold a lot of Hong Kong stock futures. The former will lead to a sharp rise in interest rates, leading to a decline in the stock market, thus making profits in the futures market; At the same time, once the Hong Kong dollar falls, they can also make profits in the foreign exchange market, killing two birds with one stone. The government of the Hong Kong SAR raised interest rates sharply, with overnight rate as high as 300%, using nearly HK$ 654.38+02 billion (about US$ 654.38+05 billion) in foreign exchange reserves and buying a large number of Hong Kong stocks. As a result, speculators were forced to close their positions at a high price on August 28, and the losses were serious. In addition, they were frustrated in Russia and Malaysia at the same time and finally retreated. In this campaign, the Hong Kong government used a lot of foreign exchange reserves to invest in the stock market. At one time, it occupied 7% of the market value of Hong Kong stocks and became a major shareholder of some companies. Once the stock market falls, the linked exchange rate may collapse. Therefore, by June 1999 1 1, the Hong Kong stocks purchased by the Government will be listed on TraHK and sold back to the market in batches.
affect
The crisis forced all the major currencies in Southeast Asia to depreciate sharply in a short time, and the collapse of the monetary system and stock market in Southeast Asian countries, as well as the huge pressure of foreign capital withdrawal and domestic inflation caused by it, cast a shadow over the economic development of this region.