Hong Kong's benchmark Hang Seng Index fell 0.99 percent Friday, tracking losses of over 4 percent on the Chinese mainland's market and the slumping of US market overnight. The index is 4.3 percent lower over the week.

A 4.5 percent decline in the benchmark Shanghai Composite Index, which moved down 50.5 percent since the beginning of this year, weighed on the Hong Kong market Friday.

Hong Kong stocks fell 218.99 points, or 0.99 percent, to close at 21,885.21 after trading between 21,690.60 and 22,230.55 during the session on Friday. Turnover fell to 63.95 billion HK dollars ( 8.21 billion US dollars) from Thursday's 75.90 billion HK dollars (9.74 billion US dollars).

Analysts said they expect the market to remain under pressure in the near term on concerns over continued volatility in China shares and the US economic outlook.

Three of the four major sub-indices lost ground. The finance lost most at 1.24 percent, followed by the commerce and industry at 1.21 percent, and the property at 0.16 percent.

Bucking the trend, the utility sub-index rose 1.44 percent. Hong kong Electric climbed 2 percent to 48.25 HK dollars. Hong Kong and China Gas, the city's dominant gas supplier, gained 2.3 percent to 17.54 HK dollars.

Blue-chip heavyweight HSBC, which accounts for the largest weighting of the Hang Seng Index, was down 1.16 percent at 127.40 HK dollars.

On property stocks side, Cheung Kong, one of the biggest housing companies controlled by tycoon Li Ka-shing, was up 0.64 percent at 109.50 HK dollars.

Chinese telecom stocks declined. Heavily traded China Mobile, the largest mobile phone operator in the country and the market's largest stock measured by capitalization, was down 1.77 percent at100.10 HK dollars. China Unicom was down 2.88 percent at 15.50 HK dollars, while China Telecom down 1.91 percent and Netcom down 2. 54 percent.

Hong Kong Exchanges and Clearing Limited, the sole market operator, was down 0.47 percent at 107.00 HK dollars.

Chinese mainland's stock markets dived. On the three insures side, China Life, the country's largest insurance company, was down 2.39 percent, while Ping An, China's second largest insurance company, down 1.15 percent and PICC P&C down 4.55 percent.

On the banks side, China Construction Bank, the third largest bank in China, was down 2.19 percent. Bank of China, the country’s second largest bank, was down 1.14 percent. Heavily traded ICBC, China's largest lender, was down 1.04 percent.

China's largest offshore oil producer CNOOC was down 1.31 percent at 10.56 HK dollars. PetroChina, the country's largest oil producer, was down 0.78 percent at 10.14 HK dollars. Asia's largest refiner Sinopec Corp up 1.84 percent at 8.31 HK dollars.

(Xinhua News Agency August 9, 2008)