Hong Kong shares end morning down 5.5 pct on global recession fears

Share prices finished the morning session down over 5.5 pct in a broad sell-off as the deepening financial crisis heightened fears of a global recession.

China financials were hit hard on worries that strategic investors may dispose their holdings in some banks as share lock-up periods will expire soon.

Local banks also fell despite a cut by the Hong Kong Monetary Authority of its lending rate through its discount window facility.

Property stocks and resources counters extended their recent slide on worries over economic slowdown and slowing demand.

Aluminum Corp of China (Chalco) tumbled over 14 pct after it issued a profit warning for the third quarter, which prompted a big target price cut by Goldman Sachs.

The Hang Seng index ended the morning down 932.61 points or 5.55 pct at 15,871.15, off a high of 16,119.61 and low of 15,830.88. It marks the first time

the index has dropped below 16,000 in over 27 months.

Turnover was 34.8 bln hkd.

The China financial index plunged 1,697.64 points or 13.7 pct to 10,662.16.

The property sector index was down 1,124.34 points or 6.4 pct at 16,472.94.

( usd = 7.8 hkd)

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