Hong Kong stocks plunge more than 9%, biggest fall in 16 years

Hong Kong’s Hang Seng Index dived 9.41%, or 2,172.99 points, to 20,926.79.

Hong Kong stocks plunged more than nine per cent on Tuesday (Oct 8), their biggest fall in 16 years, after China left investors disappointed by a lack of new stimulus and few details about measures announced last month.

Hong Kong’s Hang Seng Index dived 9.41 per cent, or 2,172.99 points, to 20,926.79. The loss is its heaviest since 2008 during the global financial crisis.

The big losses in Hong Kong led the rest of Asia lower with Tokyo, Sydney, Seoul, Singapore, Taipei, Wellington and Manila all in the red. However, Mumbai, Bangkok and Jakarta edged up.

Shanghai and Shenzhen started the day on a blistering note – piling on more than 10 per cent – as they reopened after a week-long holiday that had interrupted a rally sparked by a string of announcements by policymakers aimed at kickstarting growth.

But investors pared those gains as a much-anticipated news conference on Tuesday morning – in which there were hopes for more meat on the plans or another round of pledges – failed to provide much detail.

Zheng Shanjie, head of China’s National Development and Reform Commission (NDRC), said the government was “fully confident” it will achieve its goal of around five per cent growth this year – a target analysts say is optimistic.

That gave traders little reason to press on with a market rally that has seen Hong Kong, Shanghai and Shenzhen bound more than 20 per cent higher since the first batch of measures was announced.

Shanghai ended up just 4.6 per cent and Shenzhen 8.9 per cent. AFP