A sharp sell-off in Hong Kong blue chips drove the Hang Seng index back below 20,000 yesterday as investors across the region continued to fret about slowing global growth and the outlook for the financial sector.
The Hong Kong benchmark fell 2.4 per cent to 19,999.78, wiping out nearly all the gains made in the wake of the bail-out of Fannie Mae and Freddie Mac.
Real estate stocks led the market lower, with Agile Property falling 7.4 per cent to HK$4.26, Guangzhou R&F 8.4 per cent to HK$10.26 and China Overseas Land 11.5 per cent lower at HK$10.20.
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