Effects of Capital Flow on the Equity and Housing Markets in Hong Kong

Yin-Wong Cheung, Kenneth K. Chow () and Matthew S. Yiu ()
Additional contact information
Kenneth K. Chow: Hong Kong Monetary Authority
Matthew S. Yiu: Hong Kong Institute for Monetary Research

No GRU_2017_012, GRU Working Paper Series from City University of Hong Kong, Department of Economics and Finance, Global Research Unit

Abstract: The revival of strong capital flows to emerging economies following the Global Financial Crisis in 2008-09 has rekindled the debate on effects of excessive capital inflows. We study the effects of official and illicit capital flows on Hong Kong, which is a small and open economy with minimal restrictions on cross-border fund movements. It is found that the official and illicit capital flow measures display a low level of comovement and exhibit differential effects on Hong Kong’s equity and residential housing markets. The results highlight the complexity of managing capital flows, and the relevance of sector-specific capital management policies.

Pages: 25 pages
Date: 2017-06-28
New Economics Papers: this item is included in nep-ure
References: Add references at CitEc
Citations:

Published in Pacific Economic Review, Volume 22, Issue 3, August 2017, Pages 332-349

Downloads: (external link)
https://www.cb.cityu.edu.hk/ef/doc/GRU/WPS/GRU%232 ... ung%20Chow%20Yiu.pdf (application/pdf)

Related works:
Journal Article: Effects of capital flow on the equity and housing markets in Hong Kong (2017)
Working Paper: Effects of Capital Flow on the Equity and Housing Markets in Hong Kong (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cth:wpaper:gru_2017_012

Access Statistics for this paper

More papers in GRU Working Paper Series from City University of Hong Kong, Department of Economics and Finance, Global Research Unit Contact information at EDIRC.
Bibliographic data for series maintained by GRU ( this e-mail address is bad, please contact ).