The Hang Seng

The Hang Seng Index or HSI had a very good start in the year 1969 , since then it has grown very big , with lots of ups and downs . In the year 1967it faced its first set back with economic crisis due to political and civic unrest. After which it shot up tremendously in a matter of 6 years , after which it plunged again amidst the oil crisis , economic recession and the Hon Kong dollar allowed to float between 1974-1975. After which the HSI had a steady rise inspite of the frequent ups and downs it faced due to second oil crisis, collapse of property market, Hong Long dollar pegged to US Dollar,'Sino-British Joint Declaration' signed,Unification of 4 stock exchanges,HSI futures contracts launched , Global stock market crash, the Sino-British airport financing deal signed , well all this happened between the years 1976 to 1996. SInce then the HSI has reached around 19600 which is a very big achievement for such a young Index.

The HSI has brought a tremendous change to China making it the world's 4th largest economy.It has seen a very big jump so it is very possible that a correction will happen very soon, the only fear is that during these situations the market could crash very badly when investors start selling. What do you think? will HSI survive a crash or won't it? PLEASE COMMENT