HONG KONG: Hong Kong stocks fell, taking their cue from the mainland and sluggish global markets.
The Hang Seng index dropped 1.8 percent, to 24,068.29 points, while the Hong Kong China Enterprises Index lost 2.0 percent, to 11,043.76 by break.
Chinese air carriers slumped for the second day in both China and Hong Kong, after some analysts downgraded the sector, saying yuan depreciation would hurt bottom lines of such companies with heavy borrowings denominated in foreign currencies.
In Shanghai, China Eastern and China Southern both slumped more than 7 percent by midday, while rival Air China lost 4.4 percent. In Hong Kong, the three companies fell over 5 percent.
Real estate shares also tumbled in Shanghai, after Credit Suisse cautioned investors against the risks of more capital outflows, and called the property sector the biggest loser.
But China-listed textile and garment makers, many export-oriented, extended gains on Wednesday, emerging as an obvious winner in a game where investors hunt for companies that benefit the most from a weaker yuan.
Luthai Textile Co, Shanghai Metersbonwe Fashion and Accessories Co and Hunan Mendale Hometextile Co all surged by their 10 percent daily limit.
