Hong Kong: Stocks post biggest fall in 3 months as China shares tumble

JAN 4, 20164:19 PM

[HONG KONG] Hong Kong stocks posted their biggest fall in three months on Monday, marking a gloomy start for 2016, pulled lower by slumping mainland shares and weak global markets.

The Hang Seng index fell 2.7 per cent, to 21,327.12, registering its biggest one-day per centage fall since Sept. 29. The China Enterprises Index lost 3.6 per cent, to 9,311.18 points.

Sentiment was damped by the savage sell-off in mainland equity markets, which tumbled 7 per cent and triggered the circuit breaker mechanism that cut China's trading session short.

The panic on the mainland, triggered by sluggish factory activity surveys, fears of a share supply glut and a weaker yuan, spread to Hong Kong as well.

Shares fell across the board, with commodity, financial and industrial stocks among the biggest losers.

REUTERS