Hong Kong stocks fell to a one-year low, led by financial firms, amid renewed concern credit-market losses will damp global economic growth.
Bank of East Asia Ltd, whose first-half profit plunged after it set aside US$167.8 million for losses in credit markets, slumped 5.2 percent. China Citic Bank Corp, the banking unit of the nation's largest investment company, lost 2.6 percent after saying it held US$1.18 billion of home mortgages secured by Fannie Mae and Freddie Mac.
Cheung Kong (Holdings) Ltd, the builder owned by Asia's richest man Li Ka-shing, fell 2.8 percent after saying first-half profit fell.
The Hang Seng Index tumbled 539.20, or 2.6 percent, to 20,392.06, its worst close since August 17, 2007. It has fallen 27 percent this year on concern the United States subprime mortgage crisis and soaring inflation will slow global economic growth, Bloomberg News said.
Bank of East Asia fell to HK$29.60, HSBC Holdings Plc lost 2.6 percent to HK$117.80 and Citic Bank sank to HK$4.52
Cheung Kong dropped to HK$101.10. Foxconn International Holdings Ltd, the world's biggest contract maker of mobile phones, plunged 11 percent to HK$5.31.
