Chinese financial firms and insurers led Hong Kong shares to a three-and-a-half-month low Thursday, as the market tracked declines in the U.S. and regional bourses.
The blue-chip Hang Seng Index fell 461.67 points, or 2.1 percent, to 21,242.78 after trading between 21,163.57 and 21,742.07 during the session. It was the index's lowest close since it ended at 21,108.22 on March 20.
Turnover dropped slightly to 75.81 billion HK dollars (9.73 billion U.S. dollars) from Wednesday's 76.28 billion HK dollars (9.79 billion U.S. dollars).
Analysts and traders said they expect the benchmark index to fall in the near term, with immediate psychological support at 21,000 points.
On Wednesday, the U.S. market closed 20 percent below its record close in October, confirming a bear market. The Dow Jones Industrial Average fell 1.5 percent to 11,215.51. Fears of a bear market spread to Asia, and Japan's Nikkei 225 Stock Average retraced for the 11th straight day, falling 0.2 percent to 13,265.40. Stocks in China and Taiwan also fell sharply during the day, before ending higher on bargain hunting.
Ping An Insurance suffered the largest percentage fall among the 43 blue chips in the index, tumbling 8.6 percent to 48.90 HK dollars, after a 7.8 percent fall in the previous session.
Ping An's larger peer, China Life Insurance, also fell 3.6 percent to 25.40 HK dollars.
Chinese banks edged lower after Credit Suisse Group said in a research report investors were worried about banks' earnings next year as the cost of credit rises.
Industrial and Commercial Bank of China fell 4 percent to 5.01 HK dollars, China Construction Bank dropped 4.9 percent to 5.84 HK dollars. (7.8 HK dollars = 1 U.S. dollar)
Source: Xinhua
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