Reason: Because in 1997, Hong Kong not only had foreign exchange reserves of US$82 billion, but also had the central government’s foreign exchange reserves of US$128 billion. The two combined exceeded Japan’s US$208 billion, ranking first in the world that year.

Hong Kong’s financial defense war: At the beginning of Hong Kong’s return to the motherland in 1997, the Asian financial crisis broke out.

From mid-July to August 1998, international financial speculators attacked the Hong Kong dollar three times, taking simultaneous actions in the foreign exchange market, stock market and futures market.

They used financial futures to buy Hong Kong dollars using 3-month or 6-month Hong Kong dollar futures contracts, and then quickly sold them short, causing Hong Kong dollar interest rates to rise sharply and the Hang Seng Index to plummet, thereby making huge profits.

Faced with the rampant attacks of international financial speculators, the Hong Kong SAR government decided to fight back.

In August 1998, the Hong Kong Monetary Authority used the Exchange Fund to invest huge amounts of money in the stock and futures markets in preparation for a showdown.

The 28th was the settlement day for the August Hang Seng Futures Index in the Hong Kong stock market, and a decisive battle broke out between the SAR government and speculators.

The SAR government withstood the unprecedented selling pressure from international financial speculators, resolutely bought all the stocks, and independently supported the pallet, ultimately saving the stock market, effectively safeguarding the linked exchange rate system between the Hong Kong dollar and the US dollar, and ensuring Hong Kong's economic security and stability.

Extended information: World impact: The impact of this financial crisis is extremely far-reaching. It has exposed some deep-seated problems behind the rapid economic development of some Asian countries.

In this sense, it is not only a bad thing, but also a good thing. It provides an opportunity to promote Asian developing countries to deepen reforms, adjust industrial structures, and improve macro management.

Since the tasks of reform and adjustment are very arduous, it will take some time for the economies of these countries to fully recover.

However, the basic factors for the economic growth of developing countries in Asia still exist. By overcoming internal and external difficulties, there is great hope for the improvement and further development of Asia's economic situation.

In the summer of 1997, a rare financial crisis broke out in Asia.

Under the continuous onslaught of a group of international speculators such as Soros, the American financial speculator known as the "financial bandit," starting from Thailand, the foreign exchange and stock markets of Southeast Asian countries such as the Philippines, Malaysia, and Indonesia have plummeted and have failed to recover.

After succeeding in Southeast Asia, Soros decided to move to Hong Kong.

The festive atmosphere celebrating Hong Kong's return has not yet dissipated, but dark clouds of the Asian financial crisis have already settled over the city.

After seeking instructions from the central government, the SAR government made a decisive decision and intervened in the market.

After several rounds of "hand-to-hand combat", the international speculators ran out of ammunition and food and fled.

Hong Kong achieved final victory and preserved decades of development gains.