October 27, 1997, marked the “Black Monday” plunge that intensified Hong Kong’s Asian financial crisis.
On that day, Hong Kong’s Hang Seng Index fell 1,211.47 points, or 10.4%. The decline reflected regional contagion after financial crises had already affected Thailand, Indonesia, Malaysia, and other Asian economies. Investors were increasingly concerned about currency pressure, corporate debt, and the sustainability of Hong Kong’s asset prices.
The crash also affected global markets. U.S. exchanges activated a temporary trading halt after the Dow Jones Industrial Average fell sharply on October 27, although the Dow later recovered and ended the session down 7.18%. Hong Kong maintained its currency peg to the U.S. dollar, unlike several countries whose currencies were devalued.
This date is sometimes confused with the Thai baht crisis, which began earlier in July 1997. The two events were connected through regional contagion but were not the same market episode.