Hong Kong: Shares fall, pulled down by global market weakness

[HONG KONG] Hong Kong stocks sagged on Monday, weighed down by broad weakness in markets amid lingering worries about global economic growth.

The Hang Seng index fell 0.8 per cent, to 21,756.93, while the China Enterprises Index lost 1.3 per cent to 9,899.37 points.

US and European stocks closed lower on Friday as the Federal Reserve's decision to keep interest rates near zero fuelled concerns about the health of the world economy.

Equities in major Asian markets, including Japan and Taiwan, also fell on Monday.

Among major sectors in Hong Kong, only telecommunication stocks rose.

Shanghai Jin Jiang International Hotels Group fell 7.4 per cent after it agreed to acquire an 81 per cent interest in Keystone Lodging Holdings for 8.27 billion yuan (S$1.83 billion). Some analysts said the pricing was expensive.

REUTERS