The Hang Seng Index saw its fourth straight day of losses yesterday, led by yet another steep drop for the beleaguered Sun Hung Kai Properties.
The key index slid 0.16 per cent to 20522.26 while Sun Hung Kai Properties fell 2.18 per cent to close at HK$94.4, topping the mainboard in terms of turnover.
The stock has lost 13.14 per cent since Friday, when it resumed trading.
Analysts said the high-profile arrest of Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen took local and international investors by surprise and raised concerns about the quality of corporate governance of family-owned blue chips in Hong Kong. Developers make up 8 per cent of the HSI weighting.
Most blue-chip property development companies in the city are family-owned, including Cheung Kong, Henderson Land Development and New World Development.
Trade has dried up considerably in the Hong Kong bourse as investors tread cautiously.