HK shares close sharply lower, tracking U.S. market's decline

HONG KONG, July 29 (Xinhua) -- Hong Kong's benchmark Hang Seng Index slumped 1.89 percent to close lower for the fourth straight session Tuesday, tracking weakness in the U.S. stock market on renewed U.S. credit crunch worries.

The Dow Jones Industrial Average fell 2.1 percent to 11,131.08 overnight. Tracking the Wall Street's decline, the blue chip Hang Seng Index fell 429.21 points, or 1.89 percent, to 22,258.00 after trading between 22,089.09 and 22,265.93 during the session. Turnover totaled at a low level of 47.55 billion HK dollars (6.10 billion U.S. dollars), up from a nearly 16-month low of 41.47 billion HK dollars (5.32 billion U.S. dollars) Monday.

Analysts said lingering concerns about the credit market and a rebound in oil prices are likely to weigh on Hong Kong shares in the short term. Turnover will remain low as investors are generally taking a wait-and-see attitude and reluctant to take sides.

All the four major sub-indices lost ground. The property sub-index fell most at 2.57 percent, followed by the commerce and industry at 1.97 percent, the finance at 1.74 percent, and the utility at 1.10 percent.

Heavyweight HSBC dropped 1.3 percent to 126.10 HK dollars, and China Mobile fell 2.7 percent to 104.00 HK dollars.

Hong Kong Exchanges, the operator of the local bourse, fell 4.0percent to 114.00 HK dollars on concerns. Weak market turnover in recent months will take its toll on the company's first-half earnings. The company will disclose its first-half result on Aug. 13.

Bucking the downtrend, Chinese Internet portal company Tencent rose 4 percent to 67.70 HK dollars, on expectations of strong second-quarter profit growth in results to be announced next week, after Sohu reported sharply higher second-quarter profit Monday.