Shares plunge after rollercoaster ride
Local stocks have suffered their biggest one-day fall since the aftermath of the collapse of Lehman Brothers in 2008. The Hang Seng Index plunged 8 percent at one stage. It clawed back some losses in an afternoon rally but only to have them wiped out in late trading. The Index eventually sank 5.7 percent, or 1,159 points, to close at 19,330. The sell-off was heavy, with over HK$ 116 billion worth of shares changing hands. Shares in Europe slumped between 2 and 4 percent in initial trade. The global rout came on fears over the debt problems affecting the United States and Europe. The Chief Executive of RCM Asia Pacific, Mark Konyn, says there's been a significant loss of investor confidence. Commenting on developments, the Financial Secretary, John Tsang, said the local currency is stable and banks were operating normally. He also said there's market liquidity. Mr Tsang assured investors the government's emergency coodination centre would continue monitoring the market and making any necessary adjustments.