P.M. BRIEFING : Hong Kong Stock Market Plunges
The Hong Kong stock market plunged more than 10% today in panic trading linked to the political crisis sweeping neighboring China.
The pro-democracy demonstrations reached Hong Kong on Sunday as a million people marched on the streets in support of student protesters in Beijing. The British colony, noted for its freewheeling capitalism, reverts to China’s control in 1997 and investors fear a repressive reaction to the student movement.
The key Hang Seng Index ended down 339.06, or 10.8%, at 2806.57. It was the biggest one-day drop since the index plunged more than 30% on Oct. 26, 1987, the first day the local market was opened after Wall Street’s Oct. 19 crash.
“A lot of people don’t have any faith or hope in Hong Kong and that’s why there’s panic selling,” said John Koh, research manager at the Hoare Govett securities house.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
