Hong Kong stocks dive to lowest level since last October on HSBC plunge

Special Report:Global Financial Crisis

HONG KONG, March 9 (Chinese media) -- Hong Kong stocks dive

576.94 points, or 4.84 percent, to close at 11,344.58 on Monday as market

heavyweight HSBC further pummeled by more than 24 percent.

The benchmark Hang Seng Index

dipped 49.06 points, or 0.41 percent, to open at 11,872.46 and widened its

losses and dived 576. 94 points, or 4.84 percent, to close at the day's lowest

11,344.58, near the important supporting mark at 10,767 recorded last October.

The benchmark Hang Seng Index dipped

49.06 points, or 0.41 percent, to open at 11,872.46 and widened its losses

and dived 576. 94 points, or 4.84 percent, to close at the day's lowest

11,344.58, near the important supporting mark at 10,767 recorded last

October. (Chinese media Photo)
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Turnover shrank to 35.79 billion HK dollars (4.62

billion U.S. dollars) from Friday's 46.9 billion HK dollars (6.05 billion U.S.

dollars).

HSBC, which accounts for 15 percent of the weighting

of the benchmark Hang Seng Index, free fell 24.14 percent to 33 HK dollars

during the 10-minute price auction period after market closed, contributing to

about 70 percent of the market's sharp declines.

HSBC's offer price for five new shares of 12 existing

shares was 28 HK dollars in a rights issue to raise about 18 billion U.S.

dollars from the market. Analysts said the plunge of HSBC might jeopardize the

bank's efforts for the historic amount of rights issue.

Another market heavyweight China Mobile, the market's

largest stock by capitalization and the country's largest mobile phone operator,

fell 3.08 percent to 63 HK dollars, sending the index down by 46.29 points

alone.

Among 42 constituents of the Hang Seng Index, losing

shares greatly outnumbered advancing issues 31 to nine, with two companies

unchanged.

Local banks in Hong Kong were all down. BOC Hong

Kong, a bank note issuing bank in Hong Kong, weakened 4.55 percent to 6.3 HK

dollars. Standard Chartered Bank, another note-issuing bank, dropped 2.15

percent to 79.65 HK dollars. Hang Seng Bank, a major local bank controlled by

HSBC, also slumped 8.97 percent to 67 HK dollars. Bank of East Asia fell 7.36

percent to 12.34 HK dollars.

Most of Chinese banking and insurers listed in Hong

Kong were down over worries of deflation in the Chinese mainland ahead of the

country's latest economic readings in February. China will unveil its key

February economic data on Tuesday.

Bank of China lost 1.81 percent to 2.17 HK dollars.

China Construction Bank sank 2.95 percent to 3.95 HK dollars. Bank of

Communications edged down 0.22 percent to 4.49 HK dollars. China Merchants Bank

slipped 0.68 percent to 11.74 HK dollars.

China Life, the country's largest insurer, lost 1.17

percent to21.05 HK dollars. Ping An, China's second largest insurance company

behind China Life, moved down 1.08 percent to 36.8 HK dollars.

ICBC, China's largest lender, outshone the market by

advancing 1.94 percent to 3.16 HK dollars.

Hong Kong Exchanges and Clearing Ltd., the market's

sole operator, skidded 2.5 percent to 54.6 HK dollars.

Hong Kong's property companies were mixed. Sung Hung

Kai Property dipped 1.24 percent to 55.8 HK dollars. Cheung Kong dropped 3.68

percent to 56.3 HK dollars. Henderson Land edged down0.21 percent to 23.95 HK

dollars.

Sino Land outperformed the entire market by gaining

1.96 percent to 5.71 HK dollars. Hang Lung Property added 0.58 percent to 13.88

HK dollars.

China's energy companies were mixed as oil prices

rose above 46U.S. dollars a barrel on expectation of an output cut by the

Organization of Petroleum Exporting Countries (OPEC). PetroChina, the country's

largest oil producer, dipped 0.39 percent to 5.1 HK dollars. Sinopec, the

country's largest refiner, shed 3.44 percent to 3.65 HK dollars. CNOOC, China's

largest offshore oil producer, beat the market by gaining 2.47 percent to 6.23

HK dollars. (7.75 HK dollars = 1 U.S. dollars)