Hong Kong share prices will continue to plunge next week as Beijing's economic stimulus plans fail to allay investors' worries about the worsening global economy, a dealer said. For the week ending February 20, the benchmark Hang Seng Index dropped 6.3 percent, or 855.5 points, to 12,699.17.
Peter Lai, sales director of DBS Vickers, said figures released Thursday showing the US unemployment rate at an all-time high and other negative economic indicators would continue to dampen investors' mood next week.
"The index will continue to move on a downward trend. The worst has yet to come," he told AFP. Lai said a recent slew of measures China unveiled to stimulate domestic economy and consumer spending would make little impact on investors' decisions.
"I doubt the effectiveness of the measures in the short term," he said.
"A large number of mainland workers have lost their jobs in recent months. How can you expect this group of people to spend when even having a proper meal a day has become a pro to them?" Lai expected the index to fluctuate widely, within a range of 11,800 and 13,500.