 Typhoon Peggy , which developed on July 3 east of the Philippines , steadily strengthened to reach a peak of 130 knots ( 240 km / h ) super typhoon on July 7 . As Peggy continued westward , it slowly weakened , and hit northeastern Luzon on July 9 as a 90 kn ( 170 km / h ) typhoon . A slight weakening of the subtropical ridge brought Peggy more northward , where it hit southeastern China as a 55 kn ( 102 km / h ) tropical storm on the July 11 . In Hong Kong , winds gusted to 78 knots ( 144 km / h ) at Tate 's Cairn and rainfall totals reached 449 millimetres ( 17 @.@ 7 in ) at Tai Mo Shan . Peggy 's fury resulted in 333 casualties and US $ 2 @.@ 5 million ( 1986 dollars ) in damage from torrential flooding . 
