Text Version
RSS Feeds
Newsletter
Home Forum Photos Features Newsletter Archive Employment
About US Help Site Map
SEARCH   About US FAQ Site Map Site News
  SERVICES
  -Text Version
  -RSS Feeds
  -Newsletter
  -News Archive
  -Give us feedback
  -Voices of Readers
  -Online community
  -China Biz info
  What's new
 -
 -
HK Monetary chief sounds "second wave" alarm for financial tsunami
+ -
21:53, February 05, 2009

Click the "PLAY" button and listen. Do you like the online audio service here?
Good, I like it
Just so so
I don't like it
No interest
 Related News
 HK stocks close 0.88% higher on mainland policy hopes
 S China province lowers social insurance premiums to save jobs
 China's steel sector poised for rebound after 50 bln yuan of Q4 losses
 GM: China sells 790,000 vehicles in January
 Guotai Junan's incredible large payroll: 1 mln yuan per person
 Comment  Tell A Friend
 Print Format  Save Article
Hong Kong Monetary Authority Chief Executive Joseph Yam warns people about the possibility of a "second wave" in the continuing global financial crisis.

"This may have surprised some people, but I hope they will understand I was trying to alert them to developments that may affect them so that they can take appropriate preventive measures to protect themselves," he writes in his weekly column Viewpoint on Thursday.

"With the financial crisis far from over, there is a need for continued vigilance from everyone," he says.

He says the likely further developments are very much an extension of the earlier ones, in that financial institutions, particularly those of the developed markets, have continued to report large losses, arising directly or indirectly from their past involvement in the manufacture, distribution, trading and holding of toxic financial assets.

The size of these losses, revealed in major financial institutions' fourth-quarter numbers, is beyond market expectations. This is leading to renewed concern about the severity of the crisis, at a time when many have been hoping to see improvements, after governments have implemented unprecedentedly large rescue packages, he said.

"The latest situation in the developed markets calls for even larger rescue packages for their financial systems," he said. " Worse still, there has been little sign the functioning of these systems is returning to normal."

He said the important role of financial intermediation in supporting the economy continues to require the central banks' presence in various capacities, notably as guarantors of the banking system assets and as providers of capital and liquidity.

Credit tightness in the developed markets and the sharp economic downturn are reinforcing each other, threatening to create further financial turmoil, perhaps involving large credit losses at the banks, as borrowers face difficulties and find themselves unable to service their debt, Yam says.

He also says the second wave might be more contagious for emerging markets, as the financial crisis has sent many of them into recession.

"Promoting general awareness of risks is an effective way of limiting their adverse impact in the event that they materialize," he says.

Source: Xinhua



  Your Message:   Most Commented:
2009 Spring Festival
U.S. blame game cannot change facts of financial crisis 
Hu Jintao's "bu zheteng" baffles foreign media 
China hopes to ensure healthy, stable relations with U.S.
Nation can be first to 'recover'

|About Peopledaily.com.cn | Advertise on site | Contact us | Site map | Job offer|
Copyright by People's Daily Online, All Rights Reserved

http://english.people.com.cn/90001/90776/90884/6586729.pdf