Hong Kong stocks slumped yesterday, tracking the global markets and hurt by losses in China Mobile following an industry reshuffle.

The benchmark Hang Seng Index (HSI) lost 586.76 points or 2.37 percent to close at 24127.31, weighed down by an 8.15 percent slide in China Mobile. The fall in the stock contributed a 266.09 points loss to the HSI.

Tracking losses of China's main index in Shanghai, China life plunged 3.8 percent to close at HK$30.35. The China Enterprises Index of Hong Kong-listed mainland companies, or H shares, fell 3.04 percent to end at 13,221.28. Mainboard turnover rose slightly to HK$ 76.7 billion from HK$75.3 billion on Friday.

However, blue chip property stocks were relatively steady. Sun Hung Kai Properties rose 1.78 percent to close at HK$125.7.

Patrick Yiu, an associate director at CASH Asset Management, said that yesterday's slide was led by China Mobile and also tracking the global markets, as the US stocks tumbled last Friday on fears of high oil prices.

Yiu expects that China Mobile should be consolidated after the sharp slump that may not overwhelm the Hong Kong stocks in the short term.

"The mainland and the US stock markets, as well as the oil prices, are some factors that will affect the Hong Kong stocks performance," said Yiu.

The HSI's correction should come to an end, he said. "The index will find support at 24,000 points level."

(HK Edition 05/27/2008 page2)