Asian miracle turned into a nightmare in 1997. Thailand called free-fall in the region when the baht was separated from the U.S. dollar in July. This sent other Asian currencies to fall as speculators took advantage of profit opportunities. Hong Kong was not immune to the regional troubles. The first attack on the Hong Kong dollar was started in October 1997. As the Asian crisis worsened, the impact on the HKSAR deepened. Hong Kong stock market was pounding, as speculators mounted three attacks in 1998. Faced with this scenario, and the prospect of a worsening economy, 14 August 1998, the government changed from a passive to an active participant in control of the market, accumulating large positions in local blue chips. "Hide
by John Whitman, Mary J. Cascales Source: University of Hong Kong, 15 pages. Publication Date: January 1, 1999. Prod. #: HKU031-PDF-ENG
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