Hong Kong share prices closed 1.70 percent lower on Thursday, as falls in financial firms extended the market's recent correction, dealers said. The benchmark Hang Seng Index closed down 307.94 points at 17,776.66, its fourth consecutive drop. Turnover was 63.64 billion Hong Kong dollars (8.16 billion US). Dealers said they expected the psychologically important 17,500 level to be the next support.
"Consolidation is likely to persist, but any further declines will likely be limited," said Francis Lun, general manager at Fulbright Securities, according to Dow Jones Newswires. Banks fell on profit-taking. HSBC was down 1.3 percent at 65.90 dollars and its Hong Kong-listed arm, Hang Seng Bank, fell 0.8 percent to 107.60 dollars. Bank of East Asia declined 1.7 percent to 23.50 dollars.
China Resources Power bucked the trend, rising 4.9 percent to 17.96 dollars on hopes that China's coal prices will stabilise after China and Russia issued a joint statement on co-operation in the coal mining industry. Datang Power rose 2.4 percent to 4.35 dollars and Huaneng Power rose 1 percent to 5.38 dollars. Chaoda Modern Agriculture tumbled 15.5 percent to 4.52 dollars, lower than the 4.60 price of its share placement.