1997 the impact of the Asian financial turmoil on hong kong real estate?

The financial turmoil in Hong Kong 1997 (actually in Asia) had a very serious impact on local real estate, which (actually) eventually led to the intervention of the SAR government in the currency and capital markets. Because international speculators first borrowed a large amount of Hong Kong dollars to concentrate on selling, they intend to force the exchange rate of the Hong Kong dollar to depreciate. In order to crack down on short-term speculation in Hong Kong dollars, the Hong Kong SAR Government has raised the interest rate of short-term borrowing in Hong Kong dollars to over 30%, which has indeed increased the capital cost of international speculators, but at the same time, it has greatly hurt local owners who borrowed money to buy houses in Hong Kong. In addition, due to the stable economic and political system and highly developed market economy, the asset mortgage rate in both the stock market and the real estate market is very high. For blue-chip stocks (for example, the shares of HSBC can be mortgaged by 80%, that is, the shares of HK$ 65,438+000, and the buyer only needs to pay 20 yuan, and the rest will be provided by banks or securities companies), and the mortgage rate is as high as 80% (65,438+). Therefore, when the stock price falls sharply, the bank will urge the borrower (for example, when HSBC falls to 50 yuan, the borrower must make up for 60 yuan from the bank, because according to the 80% loan limit, the stock bank in 50 yuan can only provide 80% loans or loans from 40 yuan, and the remaining 60 yuan must be made up by the buyer). As a result, people had to sell their properties, forcing them to sell in large quantities in a short time, which suppressed the property prices and made the property prices, an important property landmark in Hong Kong, hit a new low (Hong Kong Central Property dropped from HK$ 30,000 to HK$ 50,000 at the beginning of 2000 to below HK$ 20,000 at the end of 1997).

It can be seen that Hong Kong's financial assets (stocks, foreign exchange, currency) are closely related to real estate, so the fire of the former often hurts the latter.