Hong Kong: Hong Kong share closed lower Thursday, 9 August, as caution re-emerged in late trade after two international financial firms were linked to problems in the US sub-prime mortgage market, dealers said.
French bank BNP Paribas and a US-German financial institution were both reportedly caught up in concerns over the sub-prime market, they said.
Stocks had advanced significantly, but trading changed course when the news about BNP hit the market, wiping out the day’s gains.
Some hedge funds reduced their portfolios in Hong Kong to meet possible redemption demands, while other investors locked in profit from recent gains amid fears of more volatility in global equity markets.
The Hang Seng index closed down 97.31 points at 22,439.36, off a high of 22,796.73 and a low of 22,425.07. Turnover was HK$85.16 billion ($10.88 billion).