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2
A run on
in the banking and financial system itself. deposits could not be ruled out, with serious
implications for the stability of the deposit- taking institutions.
3.
The shift out of Hong Kong dollars could also be accompanied by panic selling of securities and panic buying of gold. It would also be accompanied
G
though lagged to some extent
Gen
by a
sharp rise in the rate of inflation.
Property sector
4.
(4)
As property is less easy to sell, the effect
of such a situation would be not so much panic
selling of property as a further sharp fall in the demand for and the prices of finished property and land. This would lead to -
//
(a)
a further fall in investment in
PRAKS JA GRADA TURMARKASSER DEN GANESE JERKUSENGER EAST CARRERA DE VENGA Emad van mediante APKAN BENE
(b)
property(5) and in building and construction activities(6), and
;
a series of company failures, and not just in the real estate
sector, as banks call in loans and advances held against property-based collateral.
Manufacturing sector
5.
There are already indications of export
earnings in foreign currencies not being
repatriated, or being repatriated but not converted back into Hong Kong dollars. Those indications
are a manifestation of a basic reluctance to invest
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