Regulators are under pressure to fast-track curbs to the stock exchange's controversial closing-auction session after a last-minute plunge in HSBC Holdings shares on Monday wiped billions of dollars off its market value.
Hong Kong's financial chief, legislators and brokers have expressed concern over the tumble in HSBC's share price in the last few seconds of the auction session on Monday that contributed to a 24.14 per cent, HK$127 billion market loss.
That loss may result in restrictions being brought forward to the auction session that has been blamed for wild swings in other share prices during the last minutes of each trading day.
Financial Secretary John Tsang Chun-wah yesterday said: 'A lot of Hong Kong people hold HSBC shares so the government is concerned about its ups and downs.'
Mr Tsang said he had met officials of the Securities and Futures Commission, which said it was making inquiries into the trading.
'The commission is closely monitoring the closing-auction session in relation to the movement of HSBC's share price and we are making inquiries,' an SFC spokesman said.
A single sell order made during the last few seconds of the auction session on Monday sent HSBC shares down a further 12.47 per cent, with the stock closing the auction at HK$33 compared with HK$37.70 at the 4pm normal trading close.
