HK stocks dive 2,061 points amid global market routs

Fears of a possible recession in the United States continued to wreak havoc on Hong Kong stock market Tuesday, sending the benchmark Hang Seng Index into its largest single-day drop ever measured by points.

The steep 8.65 percent drop of Hong Kong stocks on Tuesday further extended the market's sharp losses to more than 3,300 points, or 13 percent, from Friday's closing within only two days.

The blue-chip Hang Seng Index plunged 1,194.57 points, or 5.01 percent, to open at 22,624.29 and widened its losses as much as 2,109.23 points, or 8.85 percent, to intra-day low 21,709.63 in the afternoon session before diving 2,061.23 points, or 8.65 percent, to close at 21,757.63.

The sharp decline also shattered the index below the so-called bull/bear threshold of 250-day moving average, its lowest since August last year.

Turnover jumped to 155.76 billion HK dollars (19.97 billion U.S. dollars) from Monday's 117.51 billion HK dollars (15.06 billion U. S. dollars).

Among the 43 components of the benchmark Hang Seng Index, only athletic footwear maker Yue Yuen Industrial outperformed the entire board, up 0.44 percent to 23.1 HK dollars.

Market heavyweight HSBC, Hong Kong's largest bank, dived 8.1 percent to 104.4 HK dollars, the lowest in about three years, dragging down the index by 290.55 points alone.

China Mobile, the market's largest stock measured by capitalization and the country's largest mobile phone operator, plummeted 7.48 percent to 108.9 HK dollars, dampening the index by233.84 points alone.

Oil sectors were under huge selling pressure. PetroChina, the country's largest oil producer, suffered a heavy blow on Tuesday by diving 14.87 percent to 9.62 HK dollars, smashing the index by 156.75 points. CNOOC, China's largest offshore oil company, nose- dived 12.75 percent to 9.65 HK dollars. Sinopec, Asia's largest oil refiner, lost 8.82 percent to 7.65 HK dollars.

Hong Kong Exchanges and Clearing Ltd., the market's sole operator, plunged 9.86 percent to 156.3 HK dollars.

Hong Kong's property companies were much lower. Cheung Kong, one of Hong Kong's largest house developers controlled by tycoon Li Ka-shing, went down 4.85 percent to 117.8 HK dollars. Henderson Land fell 6.11 percent to 64.5 HK dollars. SHK Properties move down 6.22 percent to 141.7 HK dollars. New World Development plunged 7.2 percent to 21.9 HK dollars. Sino Land went down 3.13 percent to 23.25 HK dollars. Hang Lung sank 5.95 percent to 26.85 HK dollars.

China Enterprise Index or H-shares, which tracks 43 Hong Kong- listed shares in the Chinese mainland, slumped by 1,619.54 points, or 11.97 percent, to 11,911.91.

Among the 43 H-share components, only Jiangxi Copper escaped from the recent market rout since its trading was suspended a week ago amid reports that the company plans to go public in A-shares in Shanghai Stock Exchange.

The mainland's banking and insurance companies listed in Hong Kong were among the worst hit stocks. China Life, the largest life insurer in the country, shed 15.98 percent to 27.6 HK dollars. ICBC, China's largest lender, plunged 8.85 percent to 4.43 HK dollars. CCB, the country's second largest bank, dived 11.86 percent to 4.98 HK dollars. Bank of China lost 8.61 percent to 3. 08 HK dollars. Bank of Communications shed 13.2 percent to 7.89 HK dollars. China Merchants Bank pummeled 11.55 percent to 25.65 HK dollars. Ping An, the second largest insurer in China, dived 12.49percent to 59.55 HK dollars. (7.8 HK dollars = 1 U.S. dollars)