During the 1997 Asian financial crisis, currency speculators sold the Hong Kong dollar heavily and shorted local stocks and Hang Seng Index futures. The government controversially used the exchange fund to acquire HK$120 billion (US$15 billion) worth of blue-chip shares in a two-week market intervention, beginning 12 August 1998 with the aim of punishing and deterring currency speculators.Bayani Cruz, We will hold on to blue-chip shares: Tsang , The Standard, 29 August 1998 The intervention was widely criticised as being detrimental to the reputation as one of the world's financial centres. Instead of being a regulator, the government has become "a player, a very key player".Michael Wong and Teresa Lee, Chan defends 'special action' to prevent currency chaos , The Standard, 16 August 1998
