2008-06-13 13:30:21 GMT 2008-06-13 21:30:21 (Beijing Time) Xinhua English
HONG KONG, June 13 (Xinhua) -- Hong Kong's benchmark index was dragged into its fourth consecutive day of loss on decline in China shares and concerns over U.S. market Friday.
The blue-chip Hang Seng Index fell 431.56 points, or 1.87 percent, to close at 22,592.30 Friday, which was also its intraday low.
Turnover fell to 59.07 billion U.S. dollars (7.57 billion U.S. dollars) from 77.40 billion HK dollars (9.92 billion U.S. dollars).
The benchmark index started its 4-day consecutive slump Tuesday by making the biggest fall of 1,026 points in points terms in four months, tracking the loss of Chinese mainland's markets on its latest higher-than-expected reserve ratio hike. The index has fallen 7.4 percent this week.
All the four major sub-indexes lost ground. The Hang Seng property sub-index ended down most at 2.6 percent, followed by the commerce and industry sub-index at 2.1 percent, the finance at 1. 56 percent and the utility at 1.29 percent.
Analysts said they expect the market to remain under pressure in the near term on concerns over the economic effects of high crude oil prices and the U.S. economic outlook.
Hong Kong property companies led Friday's declines on expectations of an interest rate hike in the United States.
Sino Land fell 5.5 percent to 16.70 HK dollars, Sun Hung Kai Properties slid 2.2 percent to 113.60 HK dollars and Li Ka-shing's property flagship, Cheung Kong, fell 3.1 percent to 113 HK dollars.
A 3 percent decline in the benchmark Shanghai Composite Index Friday to its lowest level since March 6, 2007 also weighed. The index has fallen more than 17 percent since June 2, the day before the latest round of selloffs began.
Local banks also fell on worries rising interest rates will lead to a decline in new loans. Bank of East Asia fell 2.9 percent to 44 HK dollars and Hang Seng Bank slid 0.4 percent to 156.90 HK dollars.
Chongqing Machinery and Electric made a lackluster debut on the Hong Kong bourse Friday. It fell 19 percent to 1.05 HK dollars, below its offer price of 1.30 HK dollars.