Hong Kong stocks fell sharply on Wednesday as concerns over global recession overshadowed the falling oil prices in global market.

The benchmark Hang Seng Index moved down 77.71 points, or 0.37 percent, to open at the day's highest 20,964.75 and widened its losses afterwards before picking up a little from the day's lowest 20,526.73 to close at 20,585.06.

Turnover rose to 56.09 billion HK dollars (7.19 billion US dollars) from Tuesday's 49.01 billion HK dollars (6.28 billion US dollars).

Among 43 components of the Hang Seng Index, declining stocks greatly outnumbered advancers 40 to 2, with HK Electric unchanged.

Huiyuan Juice, one of China's leading fruit and vegetable juice producer, stunned the market by skyrocketing 164.25 percent to 10.94 HK dollars as Coca-Cola Co. offered 17.92 billion HK dollars, or about 2.5 billion US dollars, to acquire the Chinese juice maker.

According to a joint statement by the two companies submitted to the Hong Kong Exchanges and Clearing, Coca-Cola's wholly-owned subsidiary Atlantic Industries would purchase the Chinese company's equities for 12.20 HK dollars per share, almost triple their last closing price.

Coca-Cola also offered to pay for all outstanding convertible bonds and options, bringing the total amount of the deal to as much as 19.6 billion HK dollars (around 2.51 billion US dollars).

Market heavyweight HSBC, which accounts for the largest weighting of the Hang Seng Index, lost 1.06 percent to 121.6 HK dollars, dampening the index by 36.27 points alone.

China Mobile, the largest stock measured by market capitalization, continued its weak performance by further falling 2.65 percent to 86.4 HK dollars, dragging the index by 60.72 points.

Energy companies were the hardest hit shares as global oil prices fall below 109 US dollars a barrel with the US dollar hitting its 11-month high. The US government said it would release oil from its strategic reserve to help with recovery efforts after Hurricane Gustav, which battered its southern coastal areas Tuesday.

PetroChina, or the country's largest oil producer, slumped 3.22 percent to 9.63 HK dollars. Sinopec, Asia's largest oil refiner, appeared to have failed from getting a boost from the falling oil prices, down 2.39 percent to 7.35 HK dollars. CNOOC, China's largest offshore oil producer, plunged 5.98 percent to 10.7 HK dollars.

Local property companies in Hong Kong were all lower. Cheung Kong, one of Hong Kong largest house developers controlled by tycoon Li Ka-shing, slid 0.18 percent to 112.2 HK dollars. SHK Property, the largest house developer in Hong Kong, dropped 2.43 percent to 104.6 HK dollars. Henderson Land fell 0.94 percent to 47.25 HK dollars. New World Development shed 0.53 percent to 11.36HK dollars. Sino Land edged down 0.29 percent to 13.62 HK dollars. Hang Lung Property skid 0.42 percent to 24 HK dollars.

China Enterprise Index, or H-shares composed of companies registered in the Chinese mainland, moved down 376.32 points, or 3. 29 percent, to 11,076.83.

China's banks and insurance companies softened sharply from previous strong tally. ICBC, China's largest lender, lost 3 percent to 5.19 HK dollars. Bank of China, the country's second largest bank, weakened 1.5 percent to 3.28 HK dollars. China Construction Bank fell 1.92 percent to 6.13 HK dollars. Bank of Communications slumped 2.47 percent to 8.68 HK dollars. China Merchants Bank softened 3.55 percent to 24.45 HK dollars. China Life, the country's largest insurer, moved down 2.53 percent to 28. 95 HK dollars. Ping An, the second largest insurance company, plunged 5.06 percent to 55.3 HK dollars. (7.8 HK dollars = 1 US dollar)

(Xinhua News Agency September 4, 2008)