HONG KONG: Hong Kong shares have ended 2.23 per cent lower, with a major plunge in mainland Chinese markets overshadowing a record close on Wall Street.
The benchmark Hang Seng Index lost 626.90 points to close at 27,454.31 on turnover of $HK206.05 billion ($A34.41 billion).
Meanwhile, Chinese stocks plunged 6.50 per cent on concerns over tight liquidity and stricter requirements for margin trading.
The Shanghai Composite Index slumped 321.44 points to 4,620.27 on record turnover of 1.2 trillion yuan ($A253.66 billion).
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, tumbled 5.52 per cent, or 161.09 points, to 2,756.93 on turnover of 1.1 trillion yuan.
“Tighter margin lending and an upcoming big week for IPOs (initial public offerings) constrained some liquidity,” Clement Cheng, a Hong Kong-based trader at RBC Investment Management, told Bloomberg News.
Analysts said market sentiment was also hurt after several securities firms raised the deposit level for margin trading – through which investors use borrowed funds to trade stocks.
