Hong Kong Stocks Plunge 4.74 % at Open

Hong Kong equities plunged 4.74 percent in the first few minutes of trade Wednesday, tracking more heavy losses in Shanghai and on fears about Greece’s future in the eurozone.

The Hang Seng Index dived 1,184.79 points to 23,790.52 in the first few minutes of trade.

Hong Kong investors have been buffeted by two crises, with the sell-off in mainland markets coming as Greece edges closer to a eurozone exit after a Sunday referendum rejected creditors’ plans to reform its bailout.

The Shanghai Composite Index slumped 6.97 percent, or 259.72 points, to 3,467.40. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, dropped 4.07 percent, or 78.61 points, to 1,854.22.

Mainland markets have plunged almost 40 percent in just over three weeks an investors are now worried about the spill-over effect on the already struggling Chinese economy. Bloomberg News reported that trading has been suspended on more than 1,200 shares in China.

On Tuesday European leaders gave Athens until the weekend to come up with a debt reform plan or be ejected from the currency union.

Source : Bloomberg