Furthermore, Disneyland Paris was also affected due to the recession but as of the year 2000, the Asian loan market has been showing signs of recovery indicating that it could have been the optimal time to commence the project with prospects looking to increase in the future. The system of low taxes, unrestricted capital movements, stable Hong Kong dollar, high prosperity and duty free port in Hong Kong certainly posed reasons for Chase bank to bid on the project as they showed signs of future growth in Hong Kong. China is increasingly becoming one of the major business hubs in the world so as a result of Hong Kong joining the Special Administrative Region there is high hopes that Hong Kong will expand in the future with guidance from China.
China is the world’s fastest growing major economy and with this comes threats of constantly changing and developing systems with the unpredictability threat playing a huge role for Hong Kong Disney. However, Chase bank had the largest syndicated lending platform in the Asia Pacific region indicating that they had the capability to manage such an individually large project. This would have given more reassurance to the smaller banks about the success of the project. They also had knowledge and a relationship with the local market which is a huge benefit to have in order to be able to understand in a foreign environment. Furthermore, with selecting the syndication option of engaging with Hong Kong banks this ensured