The Hang Seng index in Hong Kong plummeted today as anxieties deepened over the US subprime mortgage market. Investors reacted sharply to the growing uncertainty surrounding the potential fallout from the crisis, triggering a broad sell-off across various sectors.

The index’s decline highlights the interconnectedness of global financial markets and the vulnerability of Asian economies to economic shocks originating in the United States. Analysts are warning of further volatility in the coming days as the situation unfolds.

Specific factors contributing to the downturn include:

• Increased risk aversion among investors
• Concerns about the exposure of Hong Kong financial institutions to US subprime assets
• Profit-taking after recent market gains

The Hong Kong Monetary Authority has issued statements assuring the public that the local banking system remains stable. However, market participants remain cautious, anticipating further repercussions from the US subprime crisis.