As Chan pointed out, the financial tsunami wreaked the biggest havoc on the financial sector. In a chain reaction, the financial crisis has also affected related sectors such as logistics, retail and the service sector. "The current jobless rate is 5.3 percent. But I joked with my friends that in Hong Kong's financial Central district, unemployment is surely a double-digit figure," he said.

"We are still looking at the impact of the second wave but so far we have not seen very wide and very deep damage," he remarked. "The stock and property markets are not so bad, and people are still willing to spend money. Propped up by the motherland's robust economy, our financial situation is not that bad."

Chan, who regularly travels abroad for business, said Hong Kong is far better off than many foreign countries. On a recent trip, he noticed there were many empty business class seats onboard. Besides, many airlines have reduced the number of flights to cut operating costs.

"I am flying to Bangkok tonight, and the last Cathay Pacific flight is at 5 pm," he noted.

And when he was in the US and Europe, he noticed that foreigners, especially Americans, have obviously become more prudent in spending money and using credit cards than before.

"Compared with foreigners, most Hong Kong people have not reached a position of tightening their purses," he commented.

Chan attributes Hong Kong's better position to the fact that it had painstakingly endured the Asian financial crisis in 1998. As a result of past experiences, Hong Kong people knew how to cope with the downturn.

"The US is facing exactly the same problems we encountered 11 years ago. Given that we have survived the most difficult times, it reflects that Asian banks will not remain in a precarious position like they were 11 years ago because their fundamentals are stronger than before," he said.

"The US economy is now undergoing a restructuring. As its aftermath will affect Hong Kong, we will need to see the impact of the second wave. We need to take this opportunity to equip ourselves to prepare for future competition once the global economy revives."

(HK Edition 07/03/2009 page4)