Comparing two financial crises: the case of Hong Kong real estate markets

Charles Leung and Edward Chi Ho Tang

MPRA Paper from University Library of Munich, Germany

Abstract: Hong Kong is no stranger to bubbles or crisis. During the Asian Financial Crisis(AFC), the Hong Kong housing price index drops more than 50% in less than a year. The same market then experiences the Internet Bubble, the SARS attack, and recently the Global Financial Crisis (GFC). This paper attempts to provide some “stylized facts” of the real estate markets and the macroeconomy, and follow the event-study methodology to examine whether the markets behave differently in the AFC and GFC, and discuss the possible linkage to the change in government policies (“learning effect”) and the flow of Chinese consumers and investors to Hong Kong (“China factor”).

Keywords: regime switching; structural change; small open economy; bounded rationality; banking policy (search for similar items in EconPapers)
JEL-codes: E44 E50 E60 G01 R20 (search for similar items in EconPapers)
Date: 2011-01
New Economics Papers: this item is included in nep-mac and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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