1997 How did the Hong Kong stock crash come about?

1. If the bank raises interest rates, some funds will be withdrawn from the stock market and returned to the bank, and the amount of funds in the stock market will decrease, which will inevitably lead to a decline in stocks.

2. The bank raised interest rates, which greatly increased the financing cost. At that time, financing stock trading prevailed in Hong Kong, commonly known as "horse" exhibition. Gain and loss several times, once the stock falls, it is panic.

3. The external environment at that time was a financial crisis.

At that time, many people in Hong Kong went bankrupt and even jumped off buildings because of speculation. Originally, the losses and profits of stock trading were above 10%, even tens of% seriously, but the winning exhibition may be lost or doubled in one day.

Margin trading of Hong Kong stocks, that is, margin trading, has the function of financing brokers. The margin ratio is not fixed, depending on the stock. For example, if you buy a stock with a market value of 2W, and the margin of the stock is 70%, you can buy it from the brokerage company 1W4. Although this is the case in theory, the actual operation depends on the position and market situation.