In 1973, the Hong Kong stock market suffered a stock market crash, which lasted for a year and nine months, a drop of 91.5%. Tens of thousands of citizens went bankrupt and even committed suicide. At that time, there was a joke in the folks, saying that there was also a stock exchange in the Castle Peak Psychiatric Hospital, which was specially designed for people who had made nerves because of stock speculation. Until now, it has not been confirmed whether this is true or false.

In 1973, the Hong Kong stock market crash was described by many famous TV dramas and movies. The most famous one is of course the "Big Times". In the big era, Mr. Fang Jinxin, the father of Fang Zhanbo, was blocked from the trading floor, and the security guards could not walk away. Fanatic stock investors, pulling out the fire hydrant in a rage, poured cold water into the crowd, but the crazy stocks were unmoved.

In the famous movie "Eavesdropping 2", the secret organization of the crocodile secret organization "The Landlord" was first mentioned by the uncle (Zeng Jiangzhuang), and the 1973 stocks were repeatedly mentioned. They were the first to defeat the "sneaky" (foreigner). The trader saved the investment losses for Huazi, and made Hong Kong Huazi’s eyebrows rise from the beginning.

In 1973, the Hong Kong stock market crash was a topic that could not be avoided in the development of Hong Kong. The Hang Seng Index plunged from a high of more than 1,700 points and overnight, causing many people to squander their businesses. As a result, many suicides and Hong Kong economy suddenly fell into disrepair. Scenery, the clouds of mist cover the Xiangjiang River. Someone knocked from the Causeway Bay on Hong Kong Island to the West Ring. Even a job of taking out a meal (ordering out) could not be found. It can be seen that the economy of Hong Kong was so bad. Hong Kong residents of middle age or above should remember this.

According to the data released by the Hong Kong Stock Exchange and the Far East Stock Exchange, the statistics of the Hang Seng Index and trading volume data of the 1972 year before the start of the major stock market in Hong Kong stock market began as follows:

By 1973, the volume of transactions from January to March was 9.449 billion yuan, 9.543 billion yuan and 9.493 billion yuan, and the volume of the whole season (28.485 billion yuan) was higher than the annual turnover of 1971 (14.793 billion yuan). Times also accounted for 70% of the total turnover in 1972 (43.758 billion yuan). As for the number of newly listed companies in this quarter, there are as many as 85, and the funds absorbed amounted to 810 million yuan. A quarter high.

Under the influence of the concept of “as long as stocks, no banknotes”, many citizens rushed to buy stocks, so that the stock price rose far from the company’s actual profitability. Looking back, the blind and irrational speculative activities of this period were the major reasons for the stock market crash after the middle of March. In terms of volume, the total turnover in 1969 was 2.546 billion yuan. In 1970, it jumped to 5.989 billion yuan. In 1971 and 1972, it soared to 14.793 billion yuan and 43.758 billion yuan respectively.

That is to say, in this short period of four years, the volume of transactions has soared more than 16 times. In a word, whether it is from the Hang Seng Index or the volume of transactions, the performance of the four years from 1969 to 1972 is indeed the most rapid period in the development of the Hong Kong stock market. The so-called "sports and sorrows", this raging "golden wave", and finally the tragedy ended.

On Friday, March 9, 1973, a plain and simple day, there was no particularly sensational news, and there was no significant influx of funds. The Hang Seng Index soared to 1744.96 points due to excessive market speculation. With a high historical record, the daily turnover reached 619 million yuan, which made many investors extremely excited.

Unfortunately, on the next trading day (Monday, March 12), the stock market gradually fell due to the discovery of three fake shares of Hehe Industrial Co., Ltd., and touched a wave of selling.

On March 14th, Hong Kong stocks traded sharply, and the market momentum was very low. The stock market showed such an atmosphere. On the one hand, the money was tightened, and the second was the discovery of three shares of the company’s fake stocks, which led to the stock market’s sincerity and fear. Worried that the stocks they hold may be forged. In this psychological situation, the investors began a crazy sell-off. Once the news was spread, blindly followed the trend, the total volume fell to 403 million yuan, and the Hang Seng Index closed at 1604.25 points.

Then, on March 23, 1973, the stock market still could not get rid of the weak, and the more and more urgent. Due to the reversal of the atmosphere, some investors suffered huge losses because they could not throw away the stock. In this case, the newspaper reported that: "The stock market has plummeted in the past few days... Many stock holders are facing this miserable downwind, and they are all overwhelmed and frightened, and they have a lot to talk about." However, it can be said that the "pop-down" of Hong Kong stocks in the first half of March is only the prelude to this huge disaster. The real "depressed, fearful and fearful" is still behind. Speculators who refused to "stop the game at this time" and even held the "small market", suffered huge losses.

On March 26, another stock market rushed quietly. On the same day, the Hang Seng Index fell from 1147.98 points to 1229.28 points, a decrease of 188.70 points in a single day, a drop of more than 10%, which shocked the market. At that time, there were still a small number of people in the market saying that “the stock market will soon stop falling and rise”, so it is recommended to “depreciate the absorption”. Unfortunately, this overly optimistic forecast cannot be fulfilled within two years, and the stock market's decline is also getting more and more urgent and falling deeper and deeper under the pressure of “selling big”.

The plunge continued until April 1973, when the Hong Kong Inland Revenue Department also published an advertisement on April 4, “The profit of trading stocks is taxable”, and plans to tax the stock investors. The news made the stock investors even more fearful. Intensified the market's selling tide. On April 9, the Hang Seng Index finally fell below the psychological barrier of 1000 points and closed at 934.50 points, turning the atmosphere from pessimism to fear. In fact, in just 30 days, the Hang Seng Index has fallen by more than 800 points, a drop of nearly 50%. The urgency of the downturn and the large decline are really "talking about the stock change."

As the stock market fell too fast and there were signs that would impact the financial system and affect social stability, on April 10, 1973, four exchanges and bank leaders then met with the Financial Secretary P. Haddon-Cave to discuss "stability." The policy of the stock market. After several rounds of meetings, the government has consistently insisted that it will not interfere in free market operations. However, some voluntary measures introduced by banks and exchanges will support it. These measures are as follows: (1) Postponing new shares for 3 months to reduce stock supply; (2) Strict brokers to settle within 24 hours, suppressing short-selling speculation; (3) Some large banks agree to relax stock mortgage loans and relax Market monetary policy; (4) Lifting foreign exchange controls and regaining investment confidence in the market.

Although the government or people in the market are constantly calling on investors to “keep calm and not panic”, or even say “the stock market will soon stabilize” or “Hong Kong’s economic foundation is sound and the prospects are promising”, it hopes to restore investor confidence and reverse the market. The decline. However, all efforts did not seem to work. The stock market not only did not turn around, but fell deeper and deeper, making the stock investors more flustered and fearful.

From the fall of the stock market on March 9 to the close on May 8, the stock market continued to fall for two months. In this "day, month, and dayless" day, many investors suffered heavy losses and complained. In the case of “nothing to do”, many investors are begging the government to intervene to prevent the stock market from continuing to decline.

In order to “save the market”, the four exchanges announced that they will resume full-day trading from May 7th, hoping to stimulate the transaction and reverse the decline by extending the trading hours. Later, the Commissioner of Securities Commissioner Shi Weixian also publicly stated on May 9 that "Hong Kong's economic prospects are good, the public does not have to worry about it, and the stock market confidence can be recovered." Stimulated by various “bailout” measures, the stock market finally rebounded at the low of May 9 (656.03) and rose to 742.45 on May 14. The Governor MacLehose also publicly stated on May 18. The Hong Kong stock market has returned to normal rhetoric, which has further raised the stock market to 861.54 on May 21. However, this short-term rebound wave lasted less than two weeks. On May 22, the stock market turned down again under the influence of the “big ship” rebounding momentum.

On June 27, 1973, the Hong Kong stock market finally broke the question of "the company was in financial difficulties" because of the collapse of the market value of the company. The first company to suddenly pass on financial difficulties was a financial investment company that specializes in buying and selling stocks, called Hualilai Financial Investment Company. According to reports, the company arbitrarily used the customer's stock as a collateral in the event of a stock market crash, in order to cope with the financial crisis of its insolvency. When the customer made a complaint and the police went to the door to investigate, the person in charge had “goed to the floor and fled,” which made the public pay great attention.

As investors worried that there would be companies "explosive" (financial difficulties), they did not dare to hold the goods (stocks) for too long, and even sold them recklessly, causing the Hang Seng Index to further fall to 494.45 points on July 11. After that, the stock market once experienced a technical rebound, rising from around 500 points to 602.34 points on July 18, 678.47 points on June 24 and 735.15 points on July 27. However, from July 28th, the stock market has once again bottomed out.

Entering August, the stock market continued to fall under the influence of a series of unfavorable news. The first is that the Legislative Council has tightened the opening of the exchange bill, the second is the discovery of fake stocks, and the third is the bank raising interest.

Due to unfavorable news waves, the stock market has been unable to shake off the weak, and has long been in a difficult situation of being weak and unable to rise. In fact, since the market fell on March 12, 1973 to mid-September, the Hong Kong stock market has fallen to nearly 1200 points.

By the end of 1973 (December 24), the Hang Seng Index fell further to only 400.21 points. After the Christmas, although the stock market rebounded slightly, it still closed at 433.70 points throughout the year. Compared with the peak of 1774.96 on March 9th, in just 10 months, the Hang Seng Index has fallen by 75%, while the annual turnover has reached 48.217 billion, but if the first quarter is 28.485 billion yuan, The other nine months totaled only 19.732 billion yuan. That is to say, the stock market after March, the magnitude of the decline and the big drop, is very alarming.

In the end, the Hang Seng Index actually fell to 150 points before returning to the upward trend, a drop of 91%. The tragedy of the previous stock market disasters can not be compared with it.