Hong Kong stocks dropped Thursday as investors locked in profits, taking cue from declines in mainland China and Wall Street overnight.
The blue chip Hang Seng Index fell 528.19 points, or 2.26 percent, to finish at 22,797.61.
The market was dragged down by sharp losses in mainland China bourses where the benchmark Shanghai Composite Index shed 6.5 percent after a rally in the previous session, analysts said.
"Given the plunge in mainland China markets, there's no way Hong Kong market can escape," said Castor Pang, an analyst at Sun Hung Kai Financial. "It's not likely the market will bottom out soon. Any positive news will only give investors an excuse to cash in gains and leave."
Francis Lun, a general manager at Fulbright Securities, also said investors are disappointed and dumped shares on false hope that the Chinese government would introduce market-boosting measures.
"Investors feel so hopeless now. There's a sinking feeling that this bearish market will never end," Lun said.
The market also tracked overnight weakness in Wall Street where the Dow Jones industrial average lost more than 130 points Wednesday on renewed concerns about the financial sector.
Shares across the board were lower in Hong Kong. Fixed-line phone company China Netcom lost 4.1 percent to HK$22.05, while its soon-to-be owner, China Unicom, also shed 4.1 percent to HK$14.8. China Telecom fell 4.3 percent to HK$4.48.
Developer Sun Hung Kai Properties dropped 2.6 percent to HK$115.3 after rising 3.6 percent on rating upgrade Wednesday. Sino Land was 4.7 percent lower to HK$16.5.
Higher crude prices pushed oil companies lower. China Petroleum & Chemical Corp., or Sinopec, lost 4 percent to HK$7.99, PetroChina moved 3.4 percent lower to HK$10.3.
Chinese financials also slipped following weakness in mainland China markets. ICBC, China's biggest lender by assets, lost 2.3 percent to HK$5.45, China Construction Bank was 1.7 percent lower to HK$6.37.
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Stock Exchange of Hong Kong: http://www.hkex.com.hk
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