Hong Kong’s stock exchange recorded the world’s largest single-day percentage fall during the 1987 crash.
On October 19, 1987, the Hang Seng Index fell 45.8%. The decline was part of a worldwide wave of selling that began in Hong Kong, moved through Europe, and then reached North America. Trading on the Hong Kong Stock Exchange was later suspended for several days as market participants attempted to restore orderly operations.
The crash was not limited to one country or one type of investor. Concerns about high valuations, interest rates, currency arrangements, and international trade were already affecting sentiment. Computerized trading and portfolio-insurance programs increased selling pressure once prices began to fall.
The United States received the most attention because the Dow Jones Industrial Average lost 22.6% on the same date. That was the Dow’s largest one-day percentage decline, but Hong Kong’s percentage loss was substantially greater.