At the beginning of Hong Kong's return from 65438 to 0997, the Asian financial crisis broke out. 1998 from mid-July to August, international financial speculators attacked the Hong Kong dollar three times and took actions in the foreign exchange market, stock market and futures market at the same time.

They used financial futures to buy Hong Kong dollars with three-month or six-month Hong Kong dollar futures contracts, and then quickly sold them short, resulting in a sharp rise in Hong Kong dollar interest rates and a sharp drop in the Hang Seng Index, from which they made huge profits.

Signs of financial crisis in Hong Kong

1, the stock market plummeted

For example, the world financial crisis of 1998 and the famous "Black Monday" are one of the main signs of the international financial crisis.

On that day, the Dow fell by 22.6%, Sydney by 25%, Singapore by 20%, Tokyo by 15%, London by 10.8% and Paris by 9.7%. Hong Kong's Hang Seng Index fell more than 30%. This is the first global slump in history, and the total market value loss is as high as $654.38 +0.4 trillion, which is more than three times the total loss of the First World War.

2. Mass capital flight

This will lead to a continuous decline in foreign exchange reserves, which is difficult to cope with, so we can only raise interest rates in desperation, and the result is a greater impact on China's real economy.