Thus the impact of this is far reaching and can provide insight into the future of Hong Kong’s property market as well as its overall financial infrastructure and how they can be affected. The reason for choosing this topic is therefore to study as to how this credit crunch will affect the world markets in general as well as Hong Kong Market in particular.
Current credit crunch is largely perceived as the main reason behind the collapse of the property market in international system. The reason as to why credit crunch resulted into the collapse of the property market can be traced back to the subprime mortgage crises which emerged due to the imprudent lending practices of the bank. By definition, a subprime borrower is a borrower whose credit has not been entirely satisfactory due to historical defaults on payments against loans taken. (Budworth,2009). However, such borrowers offer more lucrative options for the banks and financial institutions to lend because of their higher risk. High risk borrowers are often charged high rates therefore there is always a chance to earn high on such relationships.
Based on this simple principle of risk and return banks and financial institutions started to lend to their subprime borrowers especially in mortgage markets. However, banks and other financial institutions, at the same time, also started the process of securitization through which the mortgage portfolio held as security with the bank were bundled and securities were sold out against such collaterals in the open market. The basic purpose was to recoup the liquidity lost in making the loans to subprime borrowers.
Crises in property markets started to emerge when subprime borrowers started to default on their commitments and as such banks have to pay out to the holders of mortgage backed securities through other means as with the default of the borrowers a mismatch in cash flows were created. The
What actually is credit crunch is an interesting topic because there is generally a lack of consensus on the accurate definition of credit crunch. According to Bernanke and…
This research will begin with the statement that before drawing up the marketing plan it is essential to evaluate the external environment in which Brown Brothers proposes to introduce its wine products. The external environmental analysis of Hong Kong suggests that the market has high growth potential.
This study looks into marketing as a daily activity is perceived to constitute all processes that are concerned with activities of conception, pricing, promotion, and distribution of ideas, goods, and services. Here, the paramount aim is to create exchange that is satisfactory to individual and organizational objectives.
Housing cannot be regarded as simply a shelter since, for the majority of households, home ownership is a noteworthy form of savings and a means of wealth accumulation and upward social mobility. At the cumulative macroeconomic level, homeownership is a significant form of fixed investment and straightforwardly influences consumption, savings, and combined output over the business cycle.
The per capita wine consumption of Hong Kong legal drinkers is an average of 3.3 liters which is higher than Japan (2.3 liters) and Singapore (1.9 liters) (Suen, 2009). Hong Kong wine consumption is expected to reach 4.2 liters by 2012. Despite financial tsunami, the development of Hong Kong wine market has high growth potential.
According to the report the credit crunch will lead to a fall in stock markets in the US. International organizations may witness a drop in their stock prices. The credit crunch may lead to greater fluctuations in exchange rates and interest rates and this will mean that international organizations need to rethink their risk management policies.
a predictable manner, arbitrageurs would discern the trends, act on them, and make money at a rate above normal market returns and their actions would quickly bring stock prices to their intrinsic values.
This set of assumptions is defined by the Efficient Market Hypothesis
The paper covers the mobile commerce opportunity in Hong Kong market by providing a study of contributions made by mobile networks providers, the Hong Kong Post, and the Telecommunication Authority. It also provides a review of why the information market in Hong Kong is suitable for mobile commerce development.
According to academics like Downie et al (1995) there is a strong need of implementing national and local strategies for boosting effective international investment strategies and a better understanding of the
oks into the complex processes required for PARKnSHOP—a known chain of superstores in Hong Kong—to increase its market share in organic product market.
PESTEL Analysis is carried out on PARKnSHOP to determine its current market coverage and the dominating factors competing