Update | Hong Kong shares crumble to finish at 3-month low; Chinese stocks sink further in rout
Hang Seng index ends under 25,000 for first time since March 31. Beijing's stimulus package overwhelmed by punters fleeing equities as sell-off approaches 3-1/2 weeks
Hong Kong shares were pummeled by waves of selling to end on Tuesday at its lowest level in over three months as a prolonged rout in mainland Chinese markets raised the risk of a wider economic fallout and tested Beijing's resolve to yank all policy levers to stabilise sentiment.
The benchmark Hang Seng Index lost 1.03 per cent, or 260.97 points, to finish at 24,975.31, while the Hang Seng China Enterprises Index shed 3.30 per cent, or 404.13 points, to settle at 11,827.30.
It was the lowest close for the Hang Seng since March 27 when it settled at 24,486.20. It also marked the first time the index slid under the psychological 25,000 point level since March 31 after a rally hoisted shares to a 7-year peak on June 12.
In China, the key Shanghai Composite Index lost 1.3 per cent, or 48.8 points, to close at 3,727.1 points, while the Shenzhen Component Index shed 5.8 per cent, or 700.2 points, to settle at 11,375.6.
The ChiNext Price Index, which is the country’s version of the tech-heavy Nasdaq board in New York, dropped 5.7 per cent, or 141.82 points, to close at 2,352.01.
Louis Tse Ming-kwong, a director of VC Brokerage, said the mainland market continued to fall because the rescue plan launched by Beijing and market regulators failed to restore investor confidence.