HK stocks hit 3-year low amid currency peg fears

Hong Kong stocks extended their losing run on Thursday amid investors' fears about risks to the local currency and the possible need for mainland resources to defend the city's longtime peg to the US dollar.

The Hang Seng Index fell by 1.8 percent, or 344.15 points, to finish at 18,542.15, erasing a 0.3 percent advance at midday and reaching its lowest close since June 2012.

For the first time since 1998, Hong Kong stocks fell below the value of their net assets.