HONG KONG’S stocks suffered their biggest one-day drop since October 2008 yesterday, dragged down by another tumble on mainland exchanges, as well as bearish overseas markets amid fresh doubts that Greece can reach a bailout deal with Europe.

    The Hang Seng index plunged 5.84 percent to end at 23,516.56, the lowest close since January and wiping out all gains the Hong Kong benchmark index made in 2015. The China Enterprises Index lost 6.1 percent in the biggest fall since September 2011 to 11,107.30 points, the lowest close since December.

    It came after more than 1,200 mainland firms stopped trading as mainland stocks suffered a precipitous fall that has wiped billions off valuations.

    With the mainland stock market struggling, mainland investors rushed to sell off shares on the Hong Kong stock exchange, which is closely linked.

    “The main reason the Hong Kong market is going down is because these two markets [mainland and Hong Kong] have high correlation, with many mainland companies listed in both,” said financial analyst Castor Pang.

    The chairman of the Hong Kong stock exchange, Chow Chung-kong, yesterday said the exchange had “no intention to intervene in the market” but that the situation was being closely watched.

    Traders are also nervously watching events in Europe, where leaders Tuesday gave Greece until the weekend to come up with a debt reform plan or be ejected from the currency union.

    The move comes after Greece voted Sunday against another round of painful austerity they say has crippled the economy. (SD-Agencies)