Hong Kong - Hong Kong shares plunge by more than 4 per cent Tuesday as the city's stock market reopened after a long weekend to news of tighter credit controls in China. The Hang Seng Index shed 1,026.66 points to close the day at 23,375.52 points, 4.21 per cent lower than Friday's close. Turnover was 82.15 billion Hong Kong dollars (10.51 billion US dollars).
Analysts said the fall was a delayed reaction to losses on Wall Street on Friday as well as negative reaction to new credit controls announced in China over the weekend.
China's central bank announced a squeeze on credit, ordering banks to hold more deposits and to lend less. Capital inflows from Chinese investors play a large role in the Hang Seng Index.
