The whole world is developing earth-shaking changes. Except for Yang Yihao, who would have expected that a serious economic crisis would begin.
On July 2, 1997, the second day after Hong Kong returned to China from the UK, the Asian financial crisis swept through Thailand and the Thai baht depreciated.
Soon the storm swept through Malaysia, Singapore, Japan, South Korea and other places, breaking the rapid development of Asian economy. The economies of some Asian economic powers began to decline, and the political situation of some countries also began to be chaotic.
It is analyzed that the economic form of Asian countries is caused by the influence of US economic interests and policies, as well as George Soros' personal and a factor supporting him.
Many years later, international economists analyzed the direct contact factors, internal basic factors and world economic factors of this economic crisis.
1. The economic form of Asian countries leads to: Singapore, Malaysia, Thailand, Japan and South Korea, all countries with outward economies.
They are very dependent on the world market.
The shaking of the Asian economy will inevitably lead to a situation that will affect the whole body.
Taking Thailand as an example, whether the Thai baht needs to be traded in the international market cannot be dominated by the government, and it does not have enough foreign exchange reserves. Faced with the speculation of financiers, the country's economy is vulnerable.
The economy determines politics, so Thailand's political situation is in turmoil.
2. The impact of US economic interests and policies: In 1949, the founding of New China heralds the establishment of the socialist camp.
As the number one capitalist power, the United States has a sense of crisis.
Through strong economic backing, he established a capitalist united front in the Asia-Pacific region: South Korea, Japan, Taiwan and even Southeast Asia, all became economic vassals of the United States.
This has brought economic support to the rapid development of some Asian countries.
In the 1970s, the economies of some Southeast Asian countries developed rapidly.
However, in 1991, the collapse of the Soviet Union marked the collapse of the socialist camp. The United States certainly did not allow the Asian economy to continue to develop in this way, so the United States began to recover its economic losses, and he was indulged in Soros' behavior.
3. George Soros' personal and a factor supporting his capitalist group: The financial tycoon, a fake old wolf, is the title of this financial geek.
He once said that in terms of financial operations, it is not moral or unethical, this is just an operation.The financial market does not belong to the moral category, it is not immoral, and morality does not exist here at all because it has its own rules of the game.I am a participant in the financial market and I will play this game according to the rules I have set. I will not violate these rules, so I don’t feel guilty or responsible.Judging from the Asian financial crisis, whether I hype will not play any role in the occurrence of financial events.I don't hype it will happen.I don’t think there is any immorality in speculating in foreign currencies or speculation.On the other hand, I abide by the operating rules.I respect those rules and care about them.As someone who is moral and caring about them, I want to ensure that these rules are conducive to building a good society, so I advocate changing certain rules.I think some rules need improvement.If improvements and improvements affect my own interests, I will still support it, because this rule that needs improvement may be the reason for the incident.
As we all know, Soros' hype of the Thai baht is the fuse of the Asian financial storm.
He is an absolutely powerful and capable financier, but it is obviously despicable to achieve his goal of obtaining huge capital by playing with Asian state power.
There are many reasons for the outbreak of the financial crisis in 1997. Chinese scholars generally believe that it can be divided into direct contact factors, internal basic factors and world economic factors.
1. Direct contact factors include: (1) The impact of hot money in the international financial market.
There is currently about $7 trillion in liquid international capital worldwide.
Once international speculators find that there is profitable country or region, they will immediately impact the currency of the country or region through speculation to make huge profits in the short term.
(2) Some Asian countries have improper foreign exchange policies.
In order to attract foreign investment, they maintain a fixed exchange rate on the one hand, and expand financial liberalization on the other hand, providing international speculators with an opportunity to take advantage of.
For example, Thailand abolished the control of the capital market in 1992 before its financial system was straightened out, making the flow of short-term funds unimpeded, providing conditions for foreign speculators to speculate on the Thai baht.
(3) In order to maintain a fixed exchange rate system, these countries have long used foreign exchange reserves to make up for the deficit, resulting in an increase in foreign debt.
(4) The foreign debt structure of these countries is unreasonable.
In the case of high medium-term and short-term debt, once foreign capital outflow exceeds foreign capital inflows, and the country's foreign exchange reserves are not enough to make up for its shortcomings, the country's currency depreciation is inevitable.
2. Intrinsic basic factors include: (1) high overdraft economic growth and the expansion of non-performing assets.
Maintaining a high economic growth rate is the common aspiration of developing countries.
When conditions for rapid growth become insufficient, in order to continue to maintain the speed, these countries turn to rely on borrowing foreign debt to maintain economic growth.
However, due to unsuccessful economic development, by the mid-1990s, some Asian countries no longer had the ability to repay debts.
In Southeast Asian countries, the bubble blown by real estate is only exchanged for bad debts and bad debts of bank loans; as for South Korea, it is too easy for large enterprises to obtain funds from banks, resulting in the immediate expansion of bad assets once the company is in poor condition.
The large number of non-performing assets has in turn affected investors' confidence.
(2) The market system is immature.
First, the government has excessively intervened in resource allocation, especially in the direction of loan investment and projects in the financial system; the other is the incomplete financial system, especially the regulatory system.
(3) Defects in the export substitution model.The export replacement model is an important reason for the economic success of many Asian countries.However, this model also has three shortcomings: First, when the economy develops to a certain stage, production costs will increase and exports will be suppressed, causing imbalance in the balance of payments of these countries; Second, when this export-oriented strategy becomes the development strategy of many countries, it will form mutual squeeze between them; Third, the ladder progress of products is a necessary condition for continuing to implement export substitution, and it is impossible to maintain competitiveness by relying solely on the cheap advantages of resources.After achieving rapid growth in Asia, these countries have not solved the above problems.
3. The world economic factors mainly include: (1) The negative impacts brought about by economic globalization.
Economic globalization is an increasingly close economic ties around the world, but the negative impacts that arise cannot be ignored, such as the intensification of interest collisions between nation-states and the increasing difficulty of capital flow capacity to prevent crises.
(2) A reasonable international division of labor, trade and monetary system is not conducive to third world countries.
In the production field, developed countries are still producing high-tech products and high-tech itself. The technical content of the products is gradually declining to underdeveloped and underdeveloped countries. Least developed countries can only do assembly work and produce primary products.
In the field of exchange, developed countries can buy primary products at low prices and sell their products at monopoly and at high prices.
In the field of international finance and monetary, the entire global financial system and system are also beneficial to financial powers.
Regarding this economic crisis, it can be roughly divided into the following stages: The first stage: From June 1997 to July 2, 1997, Thailand announced that it would abandon the fixed exchange rate system and implement a floating exchange rate system, which triggered a financial storm throughout Southeast Asia.
The exchange rate of Thai baht to US dollar fell by 17% on the same day, and foreign exchange and other financial markets were in chaos.
Under the influence of Thai baht fluctuations, the Philippine peso, Indonesian rut and Malaysian ringgit have successively become the targets of international speculators.
Malaysia gave up its efforts to defend the ringgit in August, and the always strong Singapore dollar was also hit. Although Indonesia is the latest country to be infected, it has been hit the worst.
In late October, international speculators moved to the international financial center Hong Kong, pointing directly at the Hong Kong-related exchange rate system.
The Taiwan authorities suddenly abandoned the New Taiwan dollar exchange rate and depreciated by 346% in one day, increasing pressure on the Hong Kong dollar and Hong Kong stock markets.
On October 23, the Hong Kong Hang Seng Index fell 121,147 points; on the 28th, it fell 162,180 points, falling below the 9,000 point mark. Faced with the fierce attacks of international financial speculators, the Hong Kong SAR government reiterated that it would not change the current exchange rate system, and the Hang Seng Index rose, and another tens of thousands of points mark.
Then, in mid-November, a financial crisis broke out in South Korea in East Asia. On the 17th, the exchange rate of the won against the US dollar fell to a record 1,008:1.
On the 21st, the South Korean government had to seek help from the International Monetary Fund, temporarily controlling the crisis.
But on December 13, the exchange rate of the Korean won against the US dollar fell to 173,760:1.
The Korean won crisis also impacted the Japanese financial industry, which has a lot of investment in South Korea.
In the second half of 1997, a series of Japanese banks and securities companies went bankrupt one after another.
The Southeast Asian financial crisis has evolved into an Asian financial crisis.
Phase 2: From January 1998 to early July 1998, Indonesia's financial crisis recurred. Faced with the worst economic recession in history, the countermeasures formulated by the International Monetary Fund for Indonesia failed to achieve the expected results.
On February 11, the Indonesian government announced that it would implement a fixed exchange rate system for the Indonesian rupiah to maintain a fixed exchange rate between the US dollar to stabilize the Indonesian rupiah.
This move was unanimously opposed by the International Monetary Fund, the United States and Western Europe.
The International Monetary Fund threatens to withdraw its aid to Indonesia.
Indonesia is in a political and economic crisis.
On February 16, the Indonesian rupiah fell below 10,000:1 in the same US dollar.
Affected by it, the Southeast Asian foreign exchange market has caused another turmoil, with the Singapore dollar, Malaysian ringgit, Thai baht, Philippine peso, etc. falling one after another.
It was not until April 8 that Indonesia reached an agreement with the International Monetary Fund on a new economic reform plan that the Southeast Asian foreign exchange market had temporarily calmed down.
The Southeast Asian financial crisis that broke out in 1997 put the Japanese economy, which was closely related to it, into trouble.
The yen exchange rate fell from 115 yen to 1 US dollar at the end of June 1997 to 133 yen to 1 US dollar at the beginning of April 1998; between May and June, the yen exchange rate fell all the way, once approaching the 150 yen to 1 US dollar mark.
With the sharp depreciation of the yen, the international financial situation has become even more unclear, and the Asian financial crisis continues to deepen.
The third phase: From early August 1998 to the end of 1998, taking advantage of the turmoil in the US stock market and the continued decline in the yen exchange rate, international speculators launched a new round of offensive against Hong Kong.
The Hang Seng Index fell to more than 6,600 points.
The Hong Kong SAR government fired back, and the Financial Administration used foreign exchange funds to enter the stock market and futures market, absorbed the Hong Kong dollar sold by international speculators, and stabilized the foreign exchange market at the level of HK$775 to 1 USD.
One month later, international speculators suffered heavy losses and were unable to realize their attempt to use Hong Kong as a super cash machine again.
While international speculators lost in Hong Kong, they suffered even more defeats in Russia.
On August 17, the Russian Central Bank announced that it would expand the fluctuation of the ruble to US dollar exchange rate to 6095:1 this year, and postpone the repayment of foreign debts and suspend the trading of government bonds.
On September 2, the ruble depreciated by 70%.
This has caused the Russian stock market and foreign exchange market to fall sharply, triggering financial and even economic and political crises.
The sudden change in Russian policy has caused international speculators who invested huge amounts of money in the Russian stock market to be greatly damaged, and has led to a comprehensive and violent fluctuation in the foreign exchange markets of US and European countries.
By the end of 1998, the Russian economy had not yet escaped.
In 1999, the financial crisis ended.
During the Asian financial crisis, China has been under tremendous pressure to insist on not depreciating the RMB.
Due to China's implementation of relatively cautious financial policies and a series of measures to prevent financial risks taken in previous years, the financial and economic situation continued to remain stable.
To alleviate the Asian financial crisis, the Chinese government has adopted a series of positive policies: 1. Actively participate in the IMF's assistance to relevant Asian countries.
After the outbreak of the financial crisis in 1997, the Chinese government provided a total of more than US$4 billion in aid to Thailand and other countries within the framework arranged by the International Monetary Fund and through bilateral channels.
Provides external credit and emergency free drug assistance to Indonesia and other countries.
2. The Chinese government, with a highly responsible attitude, made the decision not to depreciate the RMB from the overall situation of maintaining the stability and development of the region, underwent tremendous pressure and paid a great price. This move played an important role in the stability and development of the financial and economic situation in Asia and the world.
3. While insisting on not depreciating the RMB, the Chinese government has taken policies to expand domestic demand and stimulate economic growth, maintaining the healthy and stable growth of the domestic economy, and playing an important role in alleviating the tension in Asia and driving the recovery of Asia's economy.
4. China coordinates and cooperates with relevant parties to actively participate in and promote regional and international financial cooperation.
At the Sixth Informal Meeting of Leaders of the Asia-Pacific Economic Cooperation Organization, Chinese President Jiang Zemin proposed three proposals to strengthen international cooperation to stop the spread of the crisis, reform and improve the international financial system, and respect the independent choice of relevant countries and regions to overcome the financial crisis. During the Second Informal Meeting of Leaders of ASEAN, China, Japan and South Korea and the informal Meeting of Chinese Leaders of ASEAN held in December 1998, Vice President Hu Jintao further emphasized that East Asian countries should actively participate in the reform and adjustment of the international financial system. The top priority is to strengthen the regulation and supervision of short-term liquid capital, advocate that East Asian countries exchange exchanges on macro issues such as financial reform, and recommend that the Deputy Finance Minister and the Deputy Governor-level dialogue of the central bank, and set up an expert group as appropriate as needed to conduct in-depth research on specific ways to regulate short-term liquid capital, etc. China's suggestions have received positive responses from all parties.
The impact of this financial crisis is extremely far-reaching, and it 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. This provides an opportunity for Asian developing countries to deepen reforms, adjust their industrial structure, and improve macro-management. Since the task of reform and adjustment is very arduous, it will take some time for the comprehensive economic recovery of these countries.
However, the basic factors for the economic growth of Asian developing countries still exist. After overcoming internal and external difficulties, there is great hope for the improvement and further development of the Asian economic situation.
However, from this economic crisis, we have learned and gradually learned to examine China's financial industry and increasingly international capital market from the perspective of globalization.
Financial security not only maintains the prosperity and prosperity of a country, but without the support of a strong financial system, even those industrial empires that seem impregnable are nothing more than a sand dunes surging under the feet.
The financial crisis that broke out in Southeast Asia in 1997 triggered turmoil in the global capital market, and its wide spread, rapid speed and deep destruction shocked the world.
This crisis, which has brought profound trauma to Asia and even the entire world, once again shows that national security is not simply manifested as national defense security, but increasingly manifested as economic security in the context of globalization, and the key to economic security lies in financial security.
Judging from the history of market economy development in developed countries, they have gone through about two hundred years from commodity markets, money markets, debt markets, securities markets, futures markets to derivatives markets.
Each market, each mechanism and institutional tool is adopted by tens of millions of people in economic practice according to the needs of activities, and through the practice of tens of millions of people, a common system, mechanism and tool has been gradually formed, forming a relatively complete operation and supervision system and rules.
However, it is impossible for East Asian developing countries to complete what developed countries have accomplished for more than two hundred years in just 20 to 30 years, nor can they allow various market forms, mechanisms, and institutional tools to develop and mature in sequence through a long development process, but they are issued almost simultaneously in just a few years.
Securitization began when the process of economic monetization was not completed, and the securities system was not yet matured or even the relevant operating rules were not yet determined. This led to various markets, mechanisms, and institutional tools that had to have different degrees of interstitiality.
It is precisely because of these institutional weaknesses that constitute the inherent in the catch-up economy.
The Chinese financial market, which is increasingly integrating into globalization, also faces the same problem.
On the one hand, after the construction since the reform and opening up, China has made indisputable achievements in the financial field, including financial instruments, including banks, stock markets, futures and derivatives, have increasingly prominent roles in economic life; but on the other hand, due to short development time and insufficient experience, there are many problems in the financial market, and even various crises are lurking. The incidents of China AVIC and the national copper reserves undoubtedly sounded the alarm for us.
Yang Yihao recalled the economic crisis in his mind and was constantly planning the future. China entered a period of rapid economic development since 1998. During this period, the Internet, IT, digital, real estate, hotels, medical and health, transportation, automobiles, movies and entertainment, and other industries entered a stage of rapid development. Yang Yihao was engaged in the real estate and hotel industry business. Although he started late at that time, he still made a fortune. Now, these industries are in the stage of Cute development. For Yang Yihao, who has experienced once, he will certainly not give up such a great opportunity. He has already made a decision for himself. In the future, he will start from the five industries of hotel, real estate, automobiles, the Internet, and movie entertainment to build a strong economic empire.
On July 2, 1997, the second day after Hong Kong returned to China from the UK, the Asian financial crisis swept through Thailand and the Thai baht depreciated.
Soon the storm swept through Malaysia, Singapore, Japan, South Korea and other places, breaking the rapid development of Asian economy. The economies of some Asian economic powers began to decline, and the political situation of some countries also began to be chaotic.
It is analyzed that the economic form of Asian countries is caused by the influence of US economic interests and policies, as well as George Soros' personal and a factor supporting him.
Many years later, international economists analyzed the direct contact factors, internal basic factors and world economic factors of this economic crisis.
1. The economic form of Asian countries leads to: Singapore, Malaysia, Thailand, Japan and South Korea, all countries with outward economies.
They are very dependent on the world market.
The shaking of the Asian economy will inevitably lead to a situation that will affect the whole body.
Taking Thailand as an example, whether the Thai baht needs to be traded in the international market cannot be dominated by the government, and it does not have enough foreign exchange reserves. Faced with the speculation of financiers, the country's economy is vulnerable.
The economy determines politics, so Thailand's political situation is in turmoil.
2. The impact of US economic interests and policies: In 1949, the founding of New China heralds the establishment of the socialist camp.
As the number one capitalist power, the United States has a sense of crisis.
Through strong economic backing, he established a capitalist united front in the Asia-Pacific region: South Korea, Japan, Taiwan and even Southeast Asia, all became economic vassals of the United States.
This has brought economic support to the rapid development of some Asian countries.
In the 1970s, the economies of some Southeast Asian countries developed rapidly.
However, in 1991, the collapse of the Soviet Union marked the collapse of the socialist camp. The United States certainly did not allow the Asian economy to continue to develop in this way, so the United States began to recover its economic losses, and he was indulged in Soros' behavior.
3. George Soros' personal and a factor supporting his capitalist group: The financial tycoon, a fake old wolf, is the title of this financial geek.
He once said that in terms of financial operations, it is not moral or unethical, this is just an operation.The financial market does not belong to the moral category, it is not immoral, and morality does not exist here at all because it has its own rules of the game.I am a participant in the financial market and I will play this game according to the rules I have set. I will not violate these rules, so I don’t feel guilty or responsible.Judging from the Asian financial crisis, whether I hype will not play any role in the occurrence of financial events.I don't hype it will happen.I don’t think there is any immorality in speculating in foreign currencies or speculation.On the other hand, I abide by the operating rules.I respect those rules and care about them.As someone who is moral and caring about them, I want to ensure that these rules are conducive to building a good society, so I advocate changing certain rules.I think some rules need improvement.If improvements and improvements affect my own interests, I will still support it, because this rule that needs improvement may be the reason for the incident.
As we all know, Soros' hype of the Thai baht is the fuse of the Asian financial storm.
He is an absolutely powerful and capable financier, but it is obviously despicable to achieve his goal of obtaining huge capital by playing with Asian state power.
There are many reasons for the outbreak of the financial crisis in 1997. Chinese scholars generally believe that it can be divided into direct contact factors, internal basic factors and world economic factors.
1. Direct contact factors include: (1) The impact of hot money in the international financial market.
There is currently about $7 trillion in liquid international capital worldwide.
Once international speculators find that there is profitable country or region, they will immediately impact the currency of the country or region through speculation to make huge profits in the short term.
(2) Some Asian countries have improper foreign exchange policies.
In order to attract foreign investment, they maintain a fixed exchange rate on the one hand, and expand financial liberalization on the other hand, providing international speculators with an opportunity to take advantage of.
For example, Thailand abolished the control of the capital market in 1992 before its financial system was straightened out, making the flow of short-term funds unimpeded, providing conditions for foreign speculators to speculate on the Thai baht.
(3) In order to maintain a fixed exchange rate system, these countries have long used foreign exchange reserves to make up for the deficit, resulting in an increase in foreign debt.
(4) The foreign debt structure of these countries is unreasonable.
In the case of high medium-term and short-term debt, once foreign capital outflow exceeds foreign capital inflows, and the country's foreign exchange reserves are not enough to make up for its shortcomings, the country's currency depreciation is inevitable.
2. Intrinsic basic factors include: (1) high overdraft economic growth and the expansion of non-performing assets.
Maintaining a high economic growth rate is the common aspiration of developing countries.
When conditions for rapid growth become insufficient, in order to continue to maintain the speed, these countries turn to rely on borrowing foreign debt to maintain economic growth.
However, due to unsuccessful economic development, by the mid-1990s, some Asian countries no longer had the ability to repay debts.
In Southeast Asian countries, the bubble blown by real estate is only exchanged for bad debts and bad debts of bank loans; as for South Korea, it is too easy for large enterprises to obtain funds from banks, resulting in the immediate expansion of bad assets once the company is in poor condition.
The large number of non-performing assets has in turn affected investors' confidence.
(2) The market system is immature.
First, the government has excessively intervened in resource allocation, especially in the direction of loan investment and projects in the financial system; the other is the incomplete financial system, especially the regulatory system.
(3) Defects in the export substitution model.The export replacement model is an important reason for the economic success of many Asian countries.However, this model also has three shortcomings: First, when the economy develops to a certain stage, production costs will increase and exports will be suppressed, causing imbalance in the balance of payments of these countries; Second, when this export-oriented strategy becomes the development strategy of many countries, it will form mutual squeeze between them; Third, the ladder progress of products is a necessary condition for continuing to implement export substitution, and it is impossible to maintain competitiveness by relying solely on the cheap advantages of resources.After achieving rapid growth in Asia, these countries have not solved the above problems.
3. The world economic factors mainly include: (1) The negative impacts brought about by economic globalization.
Economic globalization is an increasingly close economic ties around the world, but the negative impacts that arise cannot be ignored, such as the intensification of interest collisions between nation-states and the increasing difficulty of capital flow capacity to prevent crises.
(2) A reasonable international division of labor, trade and monetary system is not conducive to third world countries.
In the production field, developed countries are still producing high-tech products and high-tech itself. The technical content of the products is gradually declining to underdeveloped and underdeveloped countries. Least developed countries can only do assembly work and produce primary products.
In the field of exchange, developed countries can buy primary products at low prices and sell their products at monopoly and at high prices.
In the field of international finance and monetary, the entire global financial system and system are also beneficial to financial powers.
Regarding this economic crisis, it can be roughly divided into the following stages: The first stage: From June 1997 to July 2, 1997, Thailand announced that it would abandon the fixed exchange rate system and implement a floating exchange rate system, which triggered a financial storm throughout Southeast Asia.
The exchange rate of Thai baht to US dollar fell by 17% on the same day, and foreign exchange and other financial markets were in chaos.
Under the influence of Thai baht fluctuations, the Philippine peso, Indonesian rut and Malaysian ringgit have successively become the targets of international speculators.
Malaysia gave up its efforts to defend the ringgit in August, and the always strong Singapore dollar was also hit. Although Indonesia is the latest country to be infected, it has been hit the worst.
In late October, international speculators moved to the international financial center Hong Kong, pointing directly at the Hong Kong-related exchange rate system.
The Taiwan authorities suddenly abandoned the New Taiwan dollar exchange rate and depreciated by 346% in one day, increasing pressure on the Hong Kong dollar and Hong Kong stock markets.
On October 23, the Hong Kong Hang Seng Index fell 121,147 points; on the 28th, it fell 162,180 points, falling below the 9,000 point mark. Faced with the fierce attacks of international financial speculators, the Hong Kong SAR government reiterated that it would not change the current exchange rate system, and the Hang Seng Index rose, and another tens of thousands of points mark.
Then, in mid-November, a financial crisis broke out in South Korea in East Asia. On the 17th, the exchange rate of the won against the US dollar fell to a record 1,008:1.
On the 21st, the South Korean government had to seek help from the International Monetary Fund, temporarily controlling the crisis.
But on December 13, the exchange rate of the Korean won against the US dollar fell to 173,760:1.
The Korean won crisis also impacted the Japanese financial industry, which has a lot of investment in South Korea.
In the second half of 1997, a series of Japanese banks and securities companies went bankrupt one after another.
The Southeast Asian financial crisis has evolved into an Asian financial crisis.
Phase 2: From January 1998 to early July 1998, Indonesia's financial crisis recurred. Faced with the worst economic recession in history, the countermeasures formulated by the International Monetary Fund for Indonesia failed to achieve the expected results.
On February 11, the Indonesian government announced that it would implement a fixed exchange rate system for the Indonesian rupiah to maintain a fixed exchange rate between the US dollar to stabilize the Indonesian rupiah.
This move was unanimously opposed by the International Monetary Fund, the United States and Western Europe.
The International Monetary Fund threatens to withdraw its aid to Indonesia.
Indonesia is in a political and economic crisis.
On February 16, the Indonesian rupiah fell below 10,000:1 in the same US dollar.
Affected by it, the Southeast Asian foreign exchange market has caused another turmoil, with the Singapore dollar, Malaysian ringgit, Thai baht, Philippine peso, etc. falling one after another.
It was not until April 8 that Indonesia reached an agreement with the International Monetary Fund on a new economic reform plan that the Southeast Asian foreign exchange market had temporarily calmed down.
The Southeast Asian financial crisis that broke out in 1997 put the Japanese economy, which was closely related to it, into trouble.
The yen exchange rate fell from 115 yen to 1 US dollar at the end of June 1997 to 133 yen to 1 US dollar at the beginning of April 1998; between May and June, the yen exchange rate fell all the way, once approaching the 150 yen to 1 US dollar mark.
With the sharp depreciation of the yen, the international financial situation has become even more unclear, and the Asian financial crisis continues to deepen.
The third phase: From early August 1998 to the end of 1998, taking advantage of the turmoil in the US stock market and the continued decline in the yen exchange rate, international speculators launched a new round of offensive against Hong Kong.
The Hang Seng Index fell to more than 6,600 points.
The Hong Kong SAR government fired back, and the Financial Administration used foreign exchange funds to enter the stock market and futures market, absorbed the Hong Kong dollar sold by international speculators, and stabilized the foreign exchange market at the level of HK$775 to 1 USD.
One month later, international speculators suffered heavy losses and were unable to realize their attempt to use Hong Kong as a super cash machine again.
While international speculators lost in Hong Kong, they suffered even more defeats in Russia.
On August 17, the Russian Central Bank announced that it would expand the fluctuation of the ruble to US dollar exchange rate to 6095:1 this year, and postpone the repayment of foreign debts and suspend the trading of government bonds.
On September 2, the ruble depreciated by 70%.
This has caused the Russian stock market and foreign exchange market to fall sharply, triggering financial and even economic and political crises.
The sudden change in Russian policy has caused international speculators who invested huge amounts of money in the Russian stock market to be greatly damaged, and has led to a comprehensive and violent fluctuation in the foreign exchange markets of US and European countries.
By the end of 1998, the Russian economy had not yet escaped.
In 1999, the financial crisis ended.
During the Asian financial crisis, China has been under tremendous pressure to insist on not depreciating the RMB.
Due to China's implementation of relatively cautious financial policies and a series of measures to prevent financial risks taken in previous years, the financial and economic situation continued to remain stable.
To alleviate the Asian financial crisis, the Chinese government has adopted a series of positive policies: 1. Actively participate in the IMF's assistance to relevant Asian countries.
After the outbreak of the financial crisis in 1997, the Chinese government provided a total of more than US$4 billion in aid to Thailand and other countries within the framework arranged by the International Monetary Fund and through bilateral channels.
Provides external credit and emergency free drug assistance to Indonesia and other countries.
2. The Chinese government, with a highly responsible attitude, made the decision not to depreciate the RMB from the overall situation of maintaining the stability and development of the region, underwent tremendous pressure and paid a great price. This move played an important role in the stability and development of the financial and economic situation in Asia and the world.
3. While insisting on not depreciating the RMB, the Chinese government has taken policies to expand domestic demand and stimulate economic growth, maintaining the healthy and stable growth of the domestic economy, and playing an important role in alleviating the tension in Asia and driving the recovery of Asia's economy.
4. China coordinates and cooperates with relevant parties to actively participate in and promote regional and international financial cooperation.
At the Sixth Informal Meeting of Leaders of the Asia-Pacific Economic Cooperation Organization, Chinese President Jiang Zemin proposed three proposals to strengthen international cooperation to stop the spread of the crisis, reform and improve the international financial system, and respect the independent choice of relevant countries and regions to overcome the financial crisis. During the Second Informal Meeting of Leaders of ASEAN, China, Japan and South Korea and the informal Meeting of Chinese Leaders of ASEAN held in December 1998, Vice President Hu Jintao further emphasized that East Asian countries should actively participate in the reform and adjustment of the international financial system. The top priority is to strengthen the regulation and supervision of short-term liquid capital, advocate that East Asian countries exchange exchanges on macro issues such as financial reform, and recommend that the Deputy Finance Minister and the Deputy Governor-level dialogue of the central bank, and set up an expert group as appropriate as needed to conduct in-depth research on specific ways to regulate short-term liquid capital, etc. China's suggestions have received positive responses from all parties.
The impact of this financial crisis is extremely far-reaching, and it 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. This provides an opportunity for Asian developing countries to deepen reforms, adjust their industrial structure, and improve macro-management. Since the task of reform and adjustment is very arduous, it will take some time for the comprehensive economic recovery of these countries.
However, the basic factors for the economic growth of Asian developing countries still exist. After overcoming internal and external difficulties, there is great hope for the improvement and further development of the Asian economic situation.
However, from this economic crisis, we have learned and gradually learned to examine China's financial industry and increasingly international capital market from the perspective of globalization.
Financial security not only maintains the prosperity and prosperity of a country, but without the support of a strong financial system, even those industrial empires that seem impregnable are nothing more than a sand dunes surging under the feet.
The financial crisis that broke out in Southeast Asia in 1997 triggered turmoil in the global capital market, and its wide spread, rapid speed and deep destruction shocked the world.
This crisis, which has brought profound trauma to Asia and even the entire world, once again shows that national security is not simply manifested as national defense security, but increasingly manifested as economic security in the context of globalization, and the key to economic security lies in financial security.
Judging from the history of market economy development in developed countries, they have gone through about two hundred years from commodity markets, money markets, debt markets, securities markets, futures markets to derivatives markets.
Each market, each mechanism and institutional tool is adopted by tens of millions of people in economic practice according to the needs of activities, and through the practice of tens of millions of people, a common system, mechanism and tool has been gradually formed, forming a relatively complete operation and supervision system and rules.
However, it is impossible for East Asian developing countries to complete what developed countries have accomplished for more than two hundred years in just 20 to 30 years, nor can they allow various market forms, mechanisms, and institutional tools to develop and mature in sequence through a long development process, but they are issued almost simultaneously in just a few years.
Securitization began when the process of economic monetization was not completed, and the securities system was not yet matured or even the relevant operating rules were not yet determined. This led to various markets, mechanisms, and institutional tools that had to have different degrees of interstitiality.
It is precisely because of these institutional weaknesses that constitute the inherent in the catch-up economy.
The Chinese financial market, which is increasingly integrating into globalization, also faces the same problem.
On the one hand, after the construction since the reform and opening up, China has made indisputable achievements in the financial field, including financial instruments, including banks, stock markets, futures and derivatives, have increasingly prominent roles in economic life; but on the other hand, due to short development time and insufficient experience, there are many problems in the financial market, and even various crises are lurking. The incidents of China AVIC and the national copper reserves undoubtedly sounded the alarm for us.
Yang Yihao recalled the economic crisis in his mind and was constantly planning the future. China entered a period of rapid economic development since 1998. During this period, the Internet, IT, digital, real estate, hotels, medical and health, transportation, automobiles, movies and entertainment, and other industries entered a stage of rapid development. Yang Yihao was engaged in the real estate and hotel industry business. Although he started late at that time, he still made a fortune. Now, these industries are in the stage of Cute development. For Yang Yihao, who has experienced once, he will certainly not give up such a great opportunity. He has already made a decision for himself. In the future, he will start from the five industries of hotel, real estate, automobiles, the Internet, and movie entertainment to build a strong economic empire.
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