Steps to keep economy afloat may hurt more than heal: efforts to shore up markets could scare off badly needed foreign investments

Article Abstract:

Economist Dong Tao of the Credit Suisse First Boston believes that the stock market intervention of the Hong Kong provisional government may likely lead to a dry-up of badly needed foreign investments in the long term. The provisional government invested between $10 bil to $15 bil in the Hong Kong stock exchange to prop up local investor confidence and protect the exchange from speculators. Hong Kong fragile economy, that is dependent on the real estate and financial services industry, has been hit hard by the Asian currency crisis, which decreased the need for the island's financial services and dampened the demand for real estate.

Security and commodity exchanges, Securities issued, listed, Investments, Political aspects

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Government's holdings weigh on stocks in Hong Kong; exit strategy runs the risk of sending the whole market into a slump

Article Abstract:

The Hong Kong government is planning on exiting from the local stock market wherein it had dumped US$15 billion of taxpayers' money in Aug 1998. The strategy was aimed at boosting stock prices and preventing a looming financial meltdown. The strategy proved successful since the government has netted an US$11.3 billion windfall profit while confidence in the Hong Kong dollar has returned. However, it should carefully plan its exit strategy since it would risk sending the whole market into a downturn.

Government domestic functions, Management, Stocks

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Hong Kong budget offers modest steps to buoy service sectors ahead of 1997

Article Abstract:

Hong Kong has revealed its new budget which includes provisions aimed at promoting the local service industries such as banking, tourism and telecommunications. These provisions include plans to establish a science park and several new technology resource centers as well as special tax breaks for low- and middle-income groups. In addition, several special funds will be established to assist the development of the services industries.

Business services, not elsewhere classified, All Other Business Support Services, Business Services NEC, Analysis, Budget, Budgeting, Budgets, Services industry, Service industries, Business services

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