Hong Kong share prices were pummelled yesterday as the turmoil in regional markets deepened, interbank rates shot higher and fears of another full-blown attack on the dollar peg rippled through the market.
'A lot of people have lost a lot of money in a short period. It was a false rally [to Monday's close],' a broker said.
The Hang Seng Index closed 5.46 per cent lower at 10,420.22 points, taking losses over the past three days to 11.1 per cent.
Yesterday was the biggest one-day slide since the rout on October 28, when the blue-chip index shed 13.7 per cent.
The focus of Asian concern remained firmly on South Korea, where financial markets have all but frozen as confidence evaporated.
Seoul yesterday called for International Monetary Fund assistance to be speeded up in a desperate bid to meet year-end demand for US dollars. The won is in a free fall.
