Which stock index was at the center of Hong Kong’s 1997 stock-market crash?

The Hang Seng Index was at the center of Hong Kong’s 1997 stock-market crash.

The Hang Seng is Hong Kong’s principal stock-market index and tracks major companies listed on the Hong Kong Stock Exchange. During the Asian financial crisis, it suffered a dramatic decline as investors reassessed regional currencies, corporate finances, property values, and economic prospects. The crisis spread across several Asian economies, but each market had its own index and trading history.

Hong Kong’s currency board helped keep the Hong Kong dollar pegged to the U.S. dollar, creating intense pressure on interest rates and financial conditions. The stock market fell sharply in October 1997, amid broader regional turmoil and speculative attacks on currencies. Hong Kong authorities later intervened directly in the equity and futures markets during the 1998 episode.

The Hang Seng Index is sometimes mistakenly identified as a Japanese or South Korean benchmark. Japan’s main index is the Nikkei 225, while South Korea’s is the KOSPI. The SET Index belongs to Thailand.