Since September of this year, the global financial crisis has grown in severity and extended dramatically into Asia, impacting equity markets, financial systems, and the real economy. What does this all mean and what should companies and financial institutions do?
As is painfully obvious, Asia is not immune to the threat. For instance, in Korea, where banks are particularly vulnerable, the government recently announced a ~$100 billion bank-rescue package. In Indonesia, authorities halted stock-market trading on October 8 as a result of large declines. Even in China, where the economy is often cited as the silver lining for the world’s problems, trouble seems to be brewing. Economic growth slipped to 9 percent in the third-quarter–which is still healthy, but sharply down from 10.1 percent in the first quarter and below the forecast of about 9.7 percent. Subsequent to the release of these figures, the Chinese government announced a number of fiscal policy steps to boost the slowing economy.

Authors: George Nast, Janamitra Devan, Santiago Campero

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