THE LONG VIEW

It began with a war no one declared—August 1998, when hedge funds circled Hong Kong like predators scenting weakness in the currency peg. But what unfolded wasn’t just a defense; it was the birth of a new financial doctrine disguised as emergency tactics. The government, sworn to laissez-faire principles, did the unthinkable: it bought stocks by the billion, turning the Exchange Fund into a battlefield commander. And when the smoke cleared, HK$118 billion poorer but victorious, the city gained more than market stability—it gained a mythos. That war chest, forged in fire, became sacred. Now, over two decades later, the question isn’t whether to use it, but what legacy it should build. The Northern Metropolis proposal—ambitious, futuristic, expensive—asks us to remember that war chests aren’t only for fighting wars. Sometimes, their true purpose emerges only in peace: to fund the futures that crises make possible. This is not fiscal recklessness. It is pattern recognition in action—the understanding that the tools forged in survival are often the very ones meant to construct what comes next [1]. [1] South China Morning Post. (2026, March 27). Should Hong Kong be using ‘war chest’ firepower for Northern Metropolis? —Marcus Ashworth