Hong Kong stocks plunged 384.99 points, or 1.39 percent, to close at 27,230.86 on Thursday on rumors about share placement by property giant Cheung Kong's shareholders.

Turnover rose slightly to 123 billion HK dollars (15.8 billion U.S. dollars) from 120 billion on Wednesday. H-share index also fell 111 points at 16,027.

Cheung Kong fell 3 percent to 141.5 HK dollars while other property stocks also dipped. SHKP was down 3.5 to 166.7 HK dollars, New World and Sino Land slipped 2.2 percent and 4 percent to 28.85 HK dollars and 28.2 HK dollars, respectively

Mainland energy stocks came under pressure comprehensively on the decision of China's State Council that the prices of oil, natural gas and power could not be adjusted while those of such fertilizers as urea and phosphatic manure could be adjusted according to the cost rises.

China Res Power, China Power, Huaneng Power, Beijing Datang and Huadian Power dived 4.09 percent to 8.32 percent. Sinopec Corp was sharply down 6.44 percent, PetroChina down 1.97 percent, while CNOOC up 1.58 percent against the downtrend.

Coal stocks close mixed. China Coal down 0.19 percent after rises, China Shenhua up 1.18 percent and Yanzhou Coal up 3.92 percent.

Gold Stocks weakened. Zijin Mining and Zhaojin Gold Mining dipped 1.37 percent and 0.37 percent. Capitals flowed to other commodities, with Jiangxi Copper, HNC, CMOC and Xinxin Mining up 0.66 percent to 2.92 percent.

On steel stocks front, Shougang Int'l surged 11.29 percent on upbeat comment by Macquarie. Maanshan Iron was down 1.37 percent, Angang Newsteel down 0.69 percent, and Chongqing Iron up 2.91 percent.

On Chinese telecom stocks front, China Mobile was down 1.1 percent, with others speculated for restructuring suddenly. China Unicom up 7.22 percent, Netcom up 3.3 percent, and China Telecom up 6.06 percent.

The six mainland banks moved individually. CM Bank that issued a profit estimate put on another 0.94 percent. ICBC, CCB, Bank of China, Bankcomm and CITIC Bank lost 0.37 percent to 1.34 percent.

Local banks were mostly down. HSBC was down 1.25 percent, Hang Seng Bank down 1.78 percent, Bank of East Asia down 0.79 percent, and StanChart down 1.13 percent, but BOC HK was up 1.56 percent Despite emerging global economic risks and the fluctuations of the market, Hong Kong investors remain confident about the local market, according to the latest JF Asset Management Investor Confidence Index finds.

The survey shows a slight decline in confidence since the third quarter last year but still fairly confident overall.

"The index shows that investors in Hong Kong have only been affected to a limited extent by the uncertainties pervading global equity, credit and structured product markets," says Edwin Chan, JF's head of institutional and pension business.

A little more than half of investors polled said they plan to take an aggressive stance over the next six months.

(Xinhua News Agency January 11, 2008)