Reuters

(Reuters)

Hong Kong Posts Biggest Fall in 3 Months on China Tumble

Markets Reuters

Hong Kong stocks posted their biggest fall in three months on Monday, marking a gloomy start for 2016, pulled lower by slumping mainland shares and weak global markets.

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The Hang Seng index fell 2.7 percent, to 21,327.12, registering its biggest one-day percentage fall since Sept. 29. The China Enterprises Index lost 3.6 percent, to 9,311.18 points.

Sentiment was damped by the savage sell-off in mainland equity markets, which tumbled 7 percent and triggered the circuit breaker mechanism that cut China's trading session short.

The panic on the mainland, triggered by sluggish factory activity surveys, fears of a share supply glut and a weaker yuan, spread to Hong Kong as well.

Shares fell across the board, with commodity, financial and industrial stocks among the biggest losers. 

(Reporting by Samuel Shen and Pete Sweeney; Editing by Sam Holmes)