THE Hang Seng Index crashed to a 14-month low yesterday as investors retreated from volatile stocks to higher-yielding bonds and deposits.
The sell-off saw the index plummet 209 points to close 2.48 per cent down at 8,221.57, the lowest level this year.
At one stage it fell as low as 8,135.64, but some late-afternoon buying out of London helped it recover part of the lost ground.
The last time the market closed this low was on October 11 last year when it stood at 8,192.18.
Property stocks were the hardest hit, with Sun Hung Kai down $1.30 to $48.20, and Cheung Kong down 70 cents to $31.10.
A one per cent drop on Wall Street on Thursday precipitated the fall on most world markets yesterday, but Hong Kong was by far the worst-affected.
Yesterday Singapore lost 1.8 per cent, Kuala Lumpur was down 0.85 per cent, and Thailand was off 2.44 per cent.