The main benchmark of Hong Kong’s market during the 1997 Asian financial crisis was the Hang Seng Index.
The Hang Seng Index tracks major companies listed in Hong Kong and is one of Asia’s best-known stock-market gauges. During the 1997 crisis, Hong Kong faced intense pressure on its currency, interest rates, property market, and equities. The Hang Seng suffered sharp volatility as investors reassessed the territory’s economy and its relationship with mainland China.
Hong Kong’s currency remained linked to the U.S. dollar, unlike the freely floating baht after Thailand’s July devaluation. Defending the currency required high interest rates, which added pressure to borrowers and asset prices. The crisis also coincided with Hong Kong’s transfer of sovereignty to China on July 1, 1997.
The index is sometimes confused with Japan’s Nikkei 225 or Singapore’s Straits Times Index. Those are separate national-market benchmarks with different constituents and calculation methods.