Hong Kong’s stock exchange crash in October 1987 helped trigger the worldwide Black Monday sell-off.
The Hang Seng Index fell sharply before the crisis spread westward. Trading on the Hong Kong Stock Exchange was suspended from October 20 through October 26, 1987, after the index suffered an extraordinary collapse. When trading resumed, the market remained under intense pressure.
The selling then moved through international financial centers. European markets recorded major losses, and the Dow Jones Industrial Average fell 22.6% on October 19 in New York. Differences in time zones meant that the events are often described by different dates in different countries, adding to confusion about the sequence.
Hong Kong was not the only Asian market affected. Australia, Singapore, and Japan also experienced severe falls, and many other markets declined. The episode demonstrated how modern capital flows, derivatives, and computerized trading could transmit a shock rapidly across national borders.