The Hong Kong stock market crash began on October 23, when the Hang Seng index lost more than 10% of its value in the biggest one-day fall in its history. The crash followed an attack by speculators on the link between the Hong Kong dollar and the US dollar.

The government defended the currency and the resultant high interest rates contributed to a slump in Hong Kong's property market, with prices down by about 20% and still falling.

By mid-October, Hong Kong shares had lost nearly half their value compared to the time of the handover to China in July.

After rallying a little towards the end of the year, Hong Kong Shares fell again in January in response to the renewed turmoil in the Asian markets.

By maintaining the currency peg to the US dollar, however, the Hong Kong dollar has remained fairly stable, unlike many of its neighbours. This link, however, is still under threat.

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