Around the World's Markets: Hong Kong

STOCKS CLOSED sharply lower as a series of share placements by red chip companies hurt sentiment and triggered profit taking.

The Hang Seng index fell 286.27, or 2.72 per cent, to finish at 10,221.98, while the red chip China Affiliates index dived 55.6 points, or 5.16 per cent, to close at 1,039.1. "The cash calls by red chips are too fast and too many," said Alex Wongh at OSK Asia Securities. Blue chips were mostly lower, with Hutchison falling over 6 per cent and the giant financial group HSBC Holding off 1 per cent.