The different fates of Thailand and Hong Kong during the Asian financial crisis of 1997The Asian financial crisis of 1997 was a disaster that obsessed much part of the countries of Southeast Asia. The financial crisis began in July 1997 and turned into a global economic collapse due to financial contagion. Thailand, Indonesia and South Korea were hardest hit by the financial crisis. Hong Kong, Malaysia and the Philippines have also suffered many negative effects from the financial disaster. China, Singapore and Vietnam were less affected, but they also suffered from the crisis, causing citizens to lose confidence in the economy during this period. ? Soros thinks the baht exchange rate is high, why? This and the Thai baht are closely linked to the dollar exchange rate regime and Thailand when the economic environment is closely linked. In foreign exchange operations, the most important thing is to have correct projections of the shape of the exchange rate and a correct forecast analysis of the factors that concluded the foreign exchange impact. There are many factors that cause fluctuations in the foreign exchange market. For example, when the European Central Bank raises interest rates, the euro will experience a certain rebound. When Japan released economic data showing that its economy has not improved significantly, the yen will fall. At first glance, the factors affecting exchange rates appear to be quite complicated, but overall, the movement of the exchange rate is determined by supply and demand. The financial crisis in Southeast Asia began with the currency crisis in Thailand, and the currency crisis in Thailand has been brewing from the beginning. ...... middle of paper ...... currency crisis to further expand, and at the same time to maintain and protect the exchange rate system linked to Hong Kong. The Hong Kong government eventually purchased shares of various companies, which were worth a total of about $15 billion, and became the largest shareholder of some Hong Kong multinationals by the end of August. In 1999, the government began selling these stocks by launching the Tracker Fund of Hong Kong. The profit was about $4 billion.References1. Bayani Cruz, We'll hold on to blue-chip stocks: Tsang, The Standard, August 29, 1998.2. Columbia.edu. A good overview of the Thai financial crisis of 1997-98. July 28, 2013.3. Haider A. Khan, Global Markets and Asian Financial Crises, University of Denver 20044. Liebhold, David. Thailand's scapegoat? Time.com. December 27, 1999.5. http://www.adb.org/sites/default/files/KI/2003/rt29.pdf