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Hong Kong growth falters under 'one country, two systems' Chinese-style democracy : Comments
By Madeleine Byrne, published 1/4/2005Madeleine Byrne argues China is keeping a tight control over Hong Kong
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Hong Kong's economic problems were caused by a speculative bubble in housing, where far too much was invested in housing instead of more meaningful industries. House prices then collapsed by more than half, causing deflation and all the other problems that go with it. I believe that even the goverment admits this (rather unlike the situation in Australia, where some people even find it hard to admit there is a housing bubble)
If anything, the Central government has helped Hong Kong economically via a number of agreements which it has given such as a complete free trade agreement and various things to do with tourism.