Which stock exchange was at the center of Hong Kong’s Black Monday crash on October 19, 1987?
Answer
Hong Kong Stock Exchange
The Hong Kong Stock Exchange was at the center of Hong Kong’s Black Monday crash on October 19, 1987.
Hong Kong’s market suffered an exceptionally severe fall during the worldwide crash of October 1987. Trading was suspended for several days after the exchange’s Hang Seng Index plunged, while investors and brokers struggled with large losses and unsettled contracts.
The shock was international. U.S. markets experienced their record one-day percentage declines on October 19, and major exchanges in Europe, Australia, and Asia also fell. The episode exposed the danger of interconnected markets, computerized trading, portfolio insurance, and highly leveraged positions.
Hong Kong’s crash is sometimes confused with the Dow Jones event because both occurred on the same global Black Monday. They were not the same index or exchange: Hong Kong’s key benchmark was the Hang Seng Index, while the U.S. record concerned the Dow Jones Industrial Average.