Special Report:Global Financial Crisis
HONG KONG, Nov. 20 (Xinhua) -- Wall Street's plunge to five-year lows overnight was followed by a slump in Asia on Thursday, with Hong Kong's benchmark index ending sharply lower led by HSBC.
The Hang Seng Index fell 517.24 points, or 4 percent, to 12,298. 56 after trading between 11,976.88 and 12,298.56 during the session.
Turnover reached 44.62 billion Hong Kong dollars (5.76 billion U.S. dollars), up from 38.91 billion Hong Kong dollars (5.03 billion U.S. dollars) Wednesday.
Traders said there was some bargain hunting during the session, but caution prevails and they expect the index to retest the trough of 10,676 that was hit Oct. 27.
Regionally, the Nikkei 225 plunged 6.9 percent and the Seoul Composite dropped 6.7 percent after the Dow Jones Industrial Average fell 5.1 percent to 7,997 overnight on concerns about the future of U.S. automakers and banks.
In Hong Kong, HSBC fell 4.6 percent to 75.60 HK dollars, off an early low of 75.30 HK dollars.
Property companies took another beating. Property investor Wharf plunged 13 percent to 13.96 HK dollars. Developer Hang Lung Properties slid 8.9 percent to 13.08 HK dollars and Sino Land dropped 8 percent to 5.40 HK dollars.
Consumer goods-focused conglomerate China Resources Enterprise ended down 11 percent at 11.20 HK dollars, off an intra day low of 10.64 HK dollars.
Telecommunications equipment maker ZTE bucked the market trend, extending Wednesday's 12.5 percent gain to end 3.0 percent higher at 14.62 HK dollars.
HSBC started the stock at an overweight rating, with an
H-share target price of 33 HK dollars. Traders said the jump came on the
prospects of higher equipment spending by China telecom operators on hope of 3G
licensing at year-end.
