The article discusses how the stock market in Hong Kong faced challenges due to speculative trading by investors, leading to price fluctuations. The researchers looked at the development of the stock exchanges in the 1960s and 1970s, and how a lack of external supervision and reliance on self-regulation contributed to weaknesses in the market. Despite being a major financial center, Hong Kong's stock exchange ranked low in market capitalization in 2002 compared to other global exchanges.