Hong Kong stocks suffer biggest decline since early August

Hang Seng Index was down 3.4%, with HSBC shares falling 4.3% after losing its top Hong Kong executive to Blackrock Inc.

A Reuters report said, “Turnover remained light on the Hong Kong stock exchange with a holiday in China on Monday, and local markets closed on Tuesday for the Mid-Autumn Festival.”

Investors continued to lighten positions in cyclicals on concern over the impact of Europe's crisis on growth and corporate profitability, noted the report.

The drop, according to Reuters, took the index below a trendline connecting intraday lows since August 9, “paving the way for a retest of the more than two-year low at 18,868.1 hit on that day.”

View the report here.