The return and volatility spillover effects on Asian Dragons were investigated in this study. Yahoo Finance provided the monthly statistics (from August 1997 to December 2020). This study used a generalized autoregressive conditional heteroskedasticity-autoregressive moving average (GARCH-ARMA)...

"Nobody cares about Hong Kong film." I was on the set of a Hong Kong film shoot in October 2021, and a film director1 that I have known since I started research on film/TV production here in 2005 uttered this to me, as he had many times over recent years. The director's remark referred to his...

Following a run on Hong Kong’s fifth-biggest bank in September 2008, the Hong Kong government announced that it would use its Exchange Fund to extend full insurance temporarily to depositors at approved banks. The existing Deposit Protection Scheme (DPS) would continue to insure the first...

We test for arbitrage opportunities and market efficiency in the Hong Kong money, stock, and real estate markets. We find that the money market, represented by the Exchange Fund Bills, stochastically dominates both the stock and real estate markets, represented by the Hang Seng Index and the...

In September 2008, Hong Kong’s interbank market tightened after the Bank of East Asia experienced a deposit run, prompting the Hong Kong Monetary Authority (HKMA) to roll out five novel liquidity measures. The first three of these measures expanded the scope of HKMA’s discount window,...

In 1965, new prudential regulations and a real estate downturn triggered deposit runs in the British colony of Hong Kong that impacted local Chinese banks with large exposures to unfinished real estate projects and other illiquid assets. As a result of authorities’ laissez-faire approach to...

This working paper was written by Simon H. Kwan (Federal Reserve Bank of San Francisco).This paper examines the impact of deposit rate deregulation on the market value of banks in Hong Kong. We do not find that the release of the Consumer Council’s Report “Are Hong Kong Depositors Fairly...

This paper uses the stochastic econometric cost frontier approach to investigate the cost efficiency of commercial banks in Hong Kong. On average, the X-efficiency of Hong Kong banks is found to be about 16 to 30 per cent of observed total costs, which is comparable to the findings in the U.S....

Implicit in the promise of virtual banks is the mission of promoting financial inclusion in Hong Kong, through offering increased accessibility and brand-new customer experiences through the internet which are said to be easier, more personalised and customer-centered. Nevertheless, while...

Spillover effects of tourism in neighboring regions have been the focus of scholars. Hong Kong and Macao, which are two adjacent regions famous for being a "shopping paradise" and "gambling paradise," respectively, enable us to examine the relationship between tourism industries with different...

This article examines banks’ de-risking practices inside Hong Kong’s Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime, a problem that has created considerable tension between the demands of AML/CFT prevention and those of financial inclusion. It unravels the...

This Article focuses on the connection between financial inclusion and digital financial inclusion as it assesses the role of virtual banks in Hong Kong’s financial inclusion agenda because this connection may be key to virtual banks’ success. Given that virtual banks are incorporated in and...

Continuous measurements of ozone (O3) and nitrogen oxides (NOx=NO+NO2) were conducted from 2007 to 2019 in Hong Kong in order to evaluate the effectiveness of control strategies for NOx emission from diesel commercial vehicles (DCV). DCV control programs were periodically applied in three phases...

It is well-established that climate-related risks pose a material threat to the financial performance of companies and the authorities in Hong Kong have issued or proposed a variety of measures to address these risks. Under Hong Kong law, directors are required to consider and address these...

Since September 1, 2014, the renminbi (RMB) offshore market in Taiwan has been started on according a cross-strait MOU. A completed RMB market in the Chinese Economic Area therefore has been established. Due to political and economic disruptions, such as the aftermath of the global tsunami,...

Mobility-as-a-Service (MaaS) that allows travelers to access multiple mobility services through an integrated platform has been regarded as a promising solution to building seamless multimodal transport systems. Current MaaS business models mainly provide integrated mobility packages to...

This paper discusses the recent regional trade agreements that China has concluded rapidly following accession to the WTO in 2002. Agreements are in place with Hong Kong, Macao, ASEAN, Australia, and New Zealand, and are either in negotiation or under discussion with South Africa, Chile, India,...

This paper presents estimates of exchange rate pass-through derived from a panel of very disaggregated import unit-values to Hong Kong. The estimation approach builds on that utilized by Knetter (1989, 1993) to study export pricing and pricing to market. The three-dimensional data set examined...

The literature on the East Asian crisis has concentrated almost exclusively on the five crisis-hit economies of Indonesia, Korea, Malaysia, Thailand and the Philippines (Asia-5). Relatively scant attention has been paid to the twin cities of Hong Kong and Singapore, both of which also suffered...

Inflation in a country with a currency board is usually believed to be highly dependent on external factors. Important questions for understanding the dynamics of inflation are (i) how best to measure these factors and (ii) how to model the transmission mechanism. This paper brings evidence to...

In the mid-1960s two major institutional changes decreased the freedom for competition among banks in Hong Kong. In 1964, in response to a supposed 'interest rate war' the Exchange Banks Association (the precursor to the Hong Kong Association of Banks) was able to negotiate an Interest Rate...

This paper provides a theoretical model of an open economy credit channel including currency mismatch and financial fragility where exporting firms have access to international credit but non-exporting firms do not. It considers the post-crisis outcome which is predicted to be dramatically...

Prior to the late 1990s, low unemployment was a standard feature of macroeconomic life in Hong Kong. Between 1985 and 1997, the unemployment rate averaged 2.5 percent. But the picture changed dramatically thereafter with the unemployment rate rising to 6.2 percent by 1999 and remaining above 5...

This paper examines competition among commercial banks following deregulation in a small open economy. I jointly estimate a system of differentiated product demand and pricing equations, and use conduct parameters to identify market structure. The empirical results show that the banking sector...

It has been a known secret in Hong Kong that parents are so keen on their children education that they are willing to live close by schools with high reputation to stand a good chance of admission for their children. The literature has recorded a lot of scholarly interests on the link between...

In July 2019, Hong Kong issued a comprehensive regulation on robo-advisors in the capital markets, with a view to striking a balance between investor protection and innovation promotion. This regulation has generated some noticeable positive impact on the market, but some problems remain to be...

This working paper was written by Kalok Chan (Chinese University of Hong Kong Business School), F.Y. Eric Lam (Independent Researcher)*, Giorgio Valente (Hong Kong Institute for Monetary and Financial Research) and Siyuan Wu (Chinese University of Hong Kong Business School).Trading venues have...

This study aims to compare the performance of free‐floating and currency board regimes for Hong Kong by examining historical data of the two on the output growth and inflation rate. Structural vector autoregression has been applied in the empirical analysis. Without making a strong assumption...

In this paper, we examine the January effect in China’s A-share stock market from January 1995 to December 2019 using both the solar and lunar calendars. We find consistent with the existing literature the absence of a traditional January effect in the solar calendar; however, we observe a...

The economic growth of China has been driven by the development of its real estate market, especially after the 2008 crisis. This growth is mostly related to the huge housing bubble and growing amounts of sovereign debt that have been redirected to corporations in the sector. Evergrande is one...

This paper studies the economy of Hong Kong through the lens of a small open economy DSGE model with a currency board exchange rate commitment. It assumes flexible prices and a banking system that provides credit to entrepreneurial household-firms; the money supply is fully backed by reserves...

This paper investigates the drivers and inhibitors of Internet privacy concern. Applying the Multidimensional Development Theory to the online environment, we identify the important factors under four dimensions - i.e., environmental, individual, information management, and interaction...