Hong Kong shares tumbled 776.71 points, or 2.72 percent, to close at 27,744.45 on Thursday, mainly affected by falls on regional markets and concerns over the Unites States economy slowing down.

 

The benchmark Hang Seng Index opened flat at 28,518.78 after a bear run on Wednesday, and continued to widen its losses before closing at 27,744.45, down 2.72 percent.

 

The key barometer of the market fluctuated between 27,606.23 and 28,604.17 during the session on a total turnover of 127.1 billion HK dollars (16.32 billion U.S. dollars).

 

All but two blue chips fell and pushed the Hong Kong stocks lower, which analysts said was because the latest intervention in the money markets by central banks renewed concerns over the fallout of the U.S. subprime mortgage slowing down the world's largest economy.

 

Selling sentiments were also strengthened by falls across the regional markets, leading to more losses on the market during afternoon trading.

 

The weakening U.S. economy was likely to continue weigh on the stock market of Hong Kong, which has been maintaining a dollar peg, analysts said, adding that they expected further falls, at least through Christmas, and that the market could even try 25,000.

 

Five major central banks, including the U.S. Federal Reserve and the European Central Bank, said overnight they would make billions of dollars in loans available to banks at a lower than usual rate. The plan followed the Federal Reserve's failure to boost investor confidence with its 25-basis-point cut in both the federal funds rate and the discount rate.

 

Investors had expected a rate cut as much as 0.5 percentage point.

 

The finance sub-index went down 920.12 points, or 2.23 percent, to close at 40,369.41, with the heavyweight HSBC down 1.3 HK dollars, or 0.97 percent, to 133.2 HK dollars.

 

Its local unit Hang Seng Bank lost 4.5 HK dollars, or 2.81 percent, at 155.7 HK dollars.

 

ICBC, the mainland banking giant, lost 0.13 HK dollars to close at 5.92 HK dollars.

 

The Bank of China lost 0.07 HK dollars to 3.97 HK dollars while its unit BOC Hong Kong dropped 0.4 HK dollars to close at 21.7 HK dollars.

 

China Life went down 1.65 HK dollars to 41.45 HK dollars.

 

The properties genre also lost 961.39 points, or 2.56 percent, at 36,651.79.

 

Cheung Kong lost 4.1 HK dollars to close at 139.4 HK dollars but New World Development bucked the trend to go up 0.15 HK dollars at 27.4 HK dollars.

 

Yue Yuen Ind., the large manufacturer for leading athletic and casual footwear brands, was the other blue chip gainer. It shot up 2.95 HK dollars, or 11.8 percent, to 27.95 HK dollars.

 

Yue Yuen earlier said it plans to spin off its retail business by floating shares of a wholly owned unit on the Hong Kong bourse.

 

China Oriental rose 19.3 percent to 6.44 HK dollars on news that ArcelorMittal agreed to raise its stake in the company to 73.13 percent from 28 percent.

 

China Mobile, the mainland's largest mobile carrier, went down 5.6 HK dollars, or 3.92 percent, to close at 137.4 HK dollars.

 

The utilities sub-index suffered a loss of 854.56 points, or 2. 15 percent, at 38,938.50 while the commerce and industry issues tumbled 558.11 or 3.3 percent at 16,378.81.

 

(Xinhua News Agency December 14, 2007)