日批在线视频_内射毛片内射国产夫妻_亚洲三级小视频_在线观看亚洲大片短视频_女性向h片资源在线观看_亚洲最大网

National

Regional

Taiwan, HK, Macao

Special Coverage

Focus

Society

Profiles

Lehman collapse causes Hong Kong hangover

(China Daily)
Updated: 2008-09-17 07:50

Hong Kong's shares tumbled 5.4 percent to a near two-year low yesterday after Lehman Brothers sought bankruptcy protection and fears about the US financial system knocked equity markets down across the world.

Financial plays tumbled after Lehman failed to find a rescuer, insurer AIG struggled for survival and Merrill Lynch was snapped up by Bank of America, all of which unleashed a wave of global stock selling on Monday, when Hong Kong markets were closed for a holiday.

Analysts said fears over the US financial system would carry on plaguing the market and drag it yet lower as long as investors remain unsure whether US markets have hit bottom.

"There's a lot of issues investors need to deal with over the next few weeks - first of all, what's going to happen to AIG?" said Alex Tang, research director at Core Pacific-Yamaichi International.

AIG, thrown a $20 billion lifeline by New York state, came under renewed pressure as ratings agencies downgraded its debt.

"We are not expecting a major comeback. But major players and fund managers might start accumulating shares on any major dips because the valuations are good," Tang said.

Tang added that investors are keenly waiting for more decisions from the US Federal Reserve, which held a one day interest rate meeting on yesterday.

The benchmark Hang Seng Index ended down 1,052.29 points at 18,300.61, dragged down by steep losses in finance, energy, and telecom plays. It was the largest single-day percentage drop since January.

Shares in Chinese insurer PICC Property and Casualty - 9.9 percent owned by AIG - plummeted 20.2 percent to a near-two year low.

Heavyweight China Mobile fell nearly 6.1 percent.

The Chinese Enterprises Index of mainland companies listed in Hong Kong ended down 7.4 percent at 9,236.58, less than half of last year's high of 20,609.10, and its lowest level in 18 months.

Mainboard turnover climbed to roughly HK$88.4 billion, compared to Friday's HK$57.8 billion.

Joseph Yam, chief executive of the Hong Kong Monetary Authority (HKMA), said Lehman Brothers' bankruptcy filing will have a negative impact on Hong Kong markets but the city's central bank will provide liquidity if needed.

"Although the US stock market had a sharp fall on Monday, (there was) no panic selling," Yam said.

Agencies

(China Daily 09/17/2008 page15)