The official name of the 1997 Hong Kong stock-exchange benchmark was the Hang Seng Index.
The Hang Seng Index tracks major companies listed on the Stock Exchange of Hong Kong. During the Asian financial crisis, Hong Kong faced intense pressure on its currency and financial markets. The index fell sharply from its 1997 peak as investors reassessed regional growth, exchange-rate stability, and corporate debt.
Hong Kong maintained its currency peg to the U.S. dollar, unlike several Asian economies that allowed large devaluations. In August 1998, Hong Kong authorities intervened directly in the stock and futures markets during a speculative attack on the currency. The government bought shares, an unusual step that later contributed to the creation of the Exchange Fund Investment Corporation.
The Hang Seng Index is not the same as Hong Kong’s exchange itself. It is a market index, originally launched in 1969, while the Hong Kong Stock Exchange is the trading venue. The index is often abbreviated as HSI.