§  The Hong Kong stock exchange is the sixth largest in
the world with a market capitalization 
of about US $ 3.732 trillion

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§  The GDP is $319.7 billion at current market prices

§  Foreign exchange reserves to US$ 408 billion approximately
as of mid-2017

§  Hong Kong does not have public debt,  a sound 
banking system and a strong legal system

§  The 2017 Index of Economic Freedom lists Hong Kong
as the number 1 nation with the score of 8.97

Hong Kong:

§  It is the 14th largest exporter in the

§  It is the 2nd largest foreign investor in

§  It was rated as the world’s most expensive city for
three consecutive years by the Economist Intelligence Unit in 2016

§  It is ranked as the freest economy in the world by
the 2015 Index of Economic Freedom

§  GDP per capita is $93678 million and ranks the 3rd

§  It ranks 5th on the United Nations Human
Development Index

§  The GDP is estimated to be approximately around $537.447
billion and is ranked 39th among other countries


South Korea:




Increase in the
GDP growth of

Increase in
foreign trade relations I the form of wide spread exports

The provision of
better education facilities

Enhancement of
transport and communication services

Freedom from
internal control

Taiwan: Taiwan is
one of the countries that was not majorly affected by the Asian Financial Market
Crisis of 1997. The formulation of policies was done keeping in mind the
following aims:


Stability in the
interest rates

Recovery of the
stock market

Emphasis on the
tourism sector

Increase in
external trade (majorly exports)

Decrease in the
unemployment level existing in the country

Rise in the GDP
growth rate

Hong Kong: The
country that was enormously affected by the Crisis was Hong Kong. The country
had to undergo various policies formulated by the government. The primary
policy objective was to maintain the exchange rate stability within the
framework. The formulated polices aimed at:

Financial sector

Fiscal and cost
cutting measures

Exchange rate depreciation

Singapore: The policy
formation of the Singaporean government aimed at lower business costs and to
provide relief to individuals and households. The 1998 budget included measures
to help in reducing the business costs. The policies undertaken by the Singaporean
 are as follows:


To strengthen the
corporate governance of financial institutions.

To promote
capital account liberalization

To reduce moral

To strengthen
the prudential regulation

To rehabilitate the
financial sector

To strengthen
the legal and regulatory infrastructure

South Korea: The
crisis in Korea occurred due to excessive external debt. In order to correct
this liquidity crisis, a rapid injection of money in the economy as a
necessity. The IMF agreed to lend Korea a sum total of $58.4 billion. The reforms
undertaken by the Korean government aimed at the following:



report focuses on the economic situation of Hong Kong in the year 1997-1998 as
a result of the financial crisis in the Asian economies in 1997 has created
tremendous interests in the economic point of view.

The Effect In Hong Kong’s Economy After The Asian
Financial Crisis


paper examines the roots of Singapore’s resilience and assesses Singapore’s
policy responses to the crisis. (Ngiam Kee Jin, 2000)

Coping with the Asian Financial Crisis: The
Singapore Experience


article studies the interaction between two important factors influencing the
deflationary pressure on the Hong Kong economy since 1997. (Yue-Chim Richard
Wong, June 2002)

The Asian Financial Crisis, Economic Recession and
Structural Change in Hong Kong


paper studies the impact of the Asian Financial Crisis on Singapore and the
effects of the policies proposed in order to correct them. The areas of concern
were wage reduction, domestic demand stimulation, and exchange rate policies.
(Mahindra Sriwardana, Dec 2015)

Effects of the Asian
Economic Crisis on Singapore and Its Policy Responses: A General Equilibrium


It states that the financial crisis lead
to economic slowdowns in several countries but Singapore was not directly
affected and the various measures undertaken by the government to help ease the
cost burden. (Valerie Chew)

Financial Crisis (1997-1998)


article talks about the way Taiwan adopted itself to the effects of the Asian Financial
Crisis of 1997. Even when Taiwan’s economy was affected by the devaluation of
the Thai Baht the economic growth was of 6.7%. (January, 1998)

Taiwan and Asian Financial Crisis


paper shows impact of the Asian financial crisis of 1997on South Korea and
Taiwan and the government’s strong intervention in the economy’s functioning to
overcome the effects. (JoonS Kil, 2004)

Korea, Taiwan, and the Asian financial crisis:
Domestic institutional differences and impact of external pressure for



Key words: Asian Financial Market Crisis, impact, policies
formulated, current situation

The current
situation of the 4 Asian Dragons

The policies
formulated by the dragons to overcome this effect

Impact of the Asian
Financial Market Crisis (1997) on the Four Asian Dragons

The Asian Financial
Market Crisis(1997)

dissertation on the Asian Financial Market Crisis and its impact on the Four
Asian Dragons endeavors the:


Key words:  devaluation,
Thai Baht, Philippines, Laos, Malaysia, China, Brunei, Indonesia, Hong Kong,
Vietnam, economic growth, unemployment

economies of Asia were recovering by the year 1999. The financial crisis had
made the economies to develop more towards the financial stability and supervision
towards finance.

effect on the Hong Kong economy was the worst in comparison to the Asian country
economies, The GDP reduced by 5.5%. The economy of the country wobbled for the
next five consecutive years.

economic growth of Singapore drastically reduced from 8% (1997) to 1.5% (1998).
In the Singaporean labor market, unemployment rose to 3.2% that accounts to
about 62,800 people. Manufacturing, commerce, construction transport and
communications sectors performs extremely inefficiently. It impacted the
currency of the country adversely. It also led to a fall in the prices of
assets, weakening of the financial and corporate sectors.

economic growth of South Korea had slowed down, the prices of various products
began to rise and so did the imports. The initial reaction of the stock market
and currency market was in favor of Korea with an increase of 7% but gradually
led to a stock market decline by 49% and the currency had to be depreciated by
65.9%. The unemployment level rose from 2% to 8.7%.The elimination of subsidies
to the export and the quick liberalization of the imports took place in Korea.

the governments of Asian countries had better fiscal policies, the
International Monetary Fund (IMF) had taken initiative to introduce a program
which was known as the $40 billion program which aimed at stabilizing the
currencies of the countries like South Korea, Thailand and Indonesia and other
economies which were particularly affected by the financial crisis. The
devaluation of the Thai Baht had a domino effect, the Malaysian Ringgit,
Indonesian Rupiah and the Singapore dollar weakened.

South Korea and Singapore were the main counties which were mostly affected by
the crisis. The financial crisis also had affected and hurt many other
countries like Philippines, Laos, Malaysia, China, Brunei, Indonesia, Hong Kong
and Vietnam. Many countries in the south east gave rose to private debt.

currency was devalued on July 2 1997 with regard to the US dollar. With the
devaluation of the Thailand currency which was over the months had led to
development of over pressure which subsequently impoverished Thailand’s
official foreign exchange reserves. In the following months the overheated
economy had collapsed because of the highly speculated the real estate market
structure, equity and Thailand’s currency (Thai Baht) had weakened a lot which
led to major difficulties such as crisis in the banking sector and balance of
payments .



Key words: Asian Financial Market Crisis (1997), government, Taiwan,
Hong Kong, Singapore, South Korea

outbreak of the Asian Financial Market Crisis (1997) has a persistent impact on
the economies of the Asian countries. This dissertation tries to portray the
impact of the Asian Financial Market Crisis of 1997 on the Four Asian Dragon
countries namely South Korea, Taiwan, Hong Kong, Singapore and how the governments
of these countries formulated policies to efficiently overcame these impacts.  


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