Hong Kong’s stock exchange suffered the largest crash among major markets during the October 1987 global sell-off.
The Hang Seng Index fell 45.8% between 19 and 26 October 1987. Trading on the Hong Kong Stock Exchange was suspended for four days as authorities and market participants dealt with the extraordinary volatility. The decline preceded and helped intensify the international panic that became associated with Black Monday.
The crisis then spread across Asia, Europe, Australia, and North America. Markets did not all fall on the same calendar date because time zones and local trading schedules differed. This is why descriptions of the crash often distinguish the Hong Kong collapse from the US market’s 19 October session.
The Hong Kong episode is sometimes overlooked because popular accounts focus on the 22.6% Dow decline. In percentage terms, however, Hong Kong experienced a much larger fall over the surrounding period.