Hong Kong Debates Using 'War Chest' for Northern Metropolis

Discussion is underway regarding the utilization of Hong Kong's substantial foreign exchange reserves, dubbed 'war chest', for the Northern Metropolis development, reminiscent of its use during the 1998 Asian financial crisis.

Fri Mar 27 2026

Hong Kong and the 1998 Asian Financial Crisis

In the summer of 1998, regional currencies like the Thai baht, Indonesian rupiah, and Korean won collapsed due to speculative attacks. The Hong Kong dollar faced a similar severe threat. During this period, the Hong Kong Monetary Authority successfully defended the Hong Kong dollar by mobilizing vast sums of money against large-scale speculative attacks.

Potential Use of the 'War Chest'

Against this historical backdrop, there is a discussion about whether the 'war chest' — the substantial financial resources Hong Kong possessed back then — should be used for the currently planned Northern Metropolis development project. This discussion is significant for finding a balance between Hong Kong's future economic development and its financial health.

*Source: SCMP (2026-03-27)*

Tags: #Hong Kong #Northern Metropolis #Asian Financial Crisis #Finance