Hong Kong is recovering from the 1997-98 Asian economic crisis. While this is good news worth cheering about, the city faces tough challenges. In particular, will Hong Kong be able to develop the new economy, a development needed to sustain the current recovery and guarantee a competitive future The answer is probably yes, but the path will be marked with a high degree of volatility both in financial markets and in society.
For anyone wishing to invest in Hong Kong, the beginnings of the new economy will offer tremendous opportunities in the stock market through ADRs, though an awareness of risks is essential. This was most evident in March and April...
